Emergency funds are an important safety net to have, and the Covid-19 crisis proved that. Many people across the world have suffered financially, whether through job redundancy, furlough or uncertainty about the future. Whilst some could tap into their savings accounts to pay for necessities, others realised they weren’t financially prepared for income loss and unexpected costs.
Older generations tend to have the biggest savings, whereas young people struggle the most with saving money. Those under 40 are more likely to have lost jobs and income due to Covid-19, being left with little to no money to save (Financial Times). This economic instability sparked an interest in younger generations to become more financially aware and take control of their money.
However, the lack of motivation and financial acumen, along with undefined saving goals, prevented many people from starting their savings journey. Questions arise on where to begin, how much to save, how often and even where to put the money. A startling 70% of UK workers live pay check by pay check and approximately 26% of UK workers have less than £1,000 in savings.
This means that they simply won’t be able to set aside a big sum of money every month or, if they do, chances are they will tap into their savings later in the month when their bank account starts to run low. Discrepancies in salaries, expenses and priorities make it impossible to create a one-size-fits-all savings solution that works for everyone.
From income, to regular expenses, to more general aspects such as age and gender, there are countless factors that influence how much people save. In order to successfully build up their savings, customers need a platform that they can tailor to their own individual needs. They are looking for savings tools that have flexibility, personalisation and convenience at their core, so those are three irreplaceable factors that must be considered when offering a service to customers.
The mission for financial institutions is to make saving money an engaging and enjoyable task for their customers, rather than a burdensome chore. The financial industry is packed with unique products and ideas, as innovative FinTechs take a customer-focused approach to develop saving tools that succeed in filling a gap in the market.
Traditional insurers now have the chance to innovate and partner with financial start-ups such as Imburse, to develop unique products and services that increase customer satisfaction and customer loyalty. The one secret sauce for success truly isn’t a secret anymore: giving customers exactly what they are looking for.
Take our MicroSavings platform, for example. It is easy to deploy and highly customisable, so your customers have the flexibility to configure a saving plan that best suits their needs. They can opt for rounding up their transactions to the nearest pound or saving a set percentage of each transaction they make. What is best, they will be building up their savings in pre-determined increments without having to actually make frequent decisions. The proposition is simple: your customers can save money every time they spend without the stress that often comes with having to make regular financial decisions.
The MicroSavings platform also allows you to interact with your customers regularly and build stronger relationships with them. The financial services industry is highly competitive and customers always have multiple options to choose from, so offering a savings tool that is customer-focused, simple and efficient will prevent your customers from looking for services offered elsewhere.
But perhaps the most relevant aspect of MicroSavings is how easy and quick it is to set it up: all there is to do is deploy the functionality, configurate the tracking options and choose the saving rules you want to offer your customers. After that, you will be ready to go.
The MicroSavings platform allows insurers to establish more meaningful relationships with their customers and play an active role in their financial journeys, all hassle-free, whilst saving time and resources. For more information on our MicroSavings platform, contact us here. Our team is happy to answer any questions you may have, offer advice and guide you through the platform.