What Your Customers Worry About When Saving for College

What your customers worry about when saving for college - picture of piggy bank - finotta

A common worry most banking customers have is: How do I pay for college? How do I pay for my children’s college? How do I pay off my student loans?

All these questions are valid concerns, as many people are in debt and stressed about how they could tackle such an investment. In fact, the average student loan debt is $36,140 taking roughly 20 years to pay off (Education Data Initiative). Carrying this much debt can make buying a house, leasing a car, and other large financial milestones very difficult to achieve. For some, it can be intimidating, even anxiety-inducing. Convincing others to completely disregard the thought of higher education.

It is unfortunate to think that the cost of education can frighten customers away from pursuing their goals. We want to give people hope that they have the power to tackle any type of financial hurdle that comes their way.

How might we do that you may ask? By challenging the status quo and bringing something new to the table.

The first step is understanding your customers’ financial journey. Some may be younger and just starting their journey and others may be older and working towards paying off their debt. No matter where they are on their journey it is never too late to understand and educate them. Loans are scary, but if we can educate and teach your customers not to be scared and have a different perspective, it is possible to help them achieve their goals.

After taking a step back from the refinancing market, banks and credit unions have re-entered the chat offering better deals on their customer’s loans. But what would make customers use a traditional financial institution over a rising fintech that offers loan refinancing?

The answer is they already trust their FIs with their money. No shade at other fintechs, but the best way to help people reach their financial goals is to meet them where they are at - right in the mobile banking application.

Student loan debt is the biggest financial burden in this country and wreaks havoc on so many of your customer’s finances. One cannot simply ignore their student loan debt, and if so, there are serious consequences. This can be extremely stressful and nerve-wracking for someone who doesn’t have a hold of their finances or know where to start.

For parents, they may not know the first steps to saving for their child’s college education. They are currently dying for answers to questions like, “When should I start?” “How much should we save each month?” “What options are available?” Some parents cannot even think about their kids' future because of piling debt of their own.

Probably the largest factor to consider is your customers who have been affected by the coronavirus. The coronavirus affected so many and there is nothing more unmotivating when something is taken from you, like a job or a loved one.

All of these journeys and circumstances need help…They need you.

The solution is to direct all your attention to the customers.

To do this, you must understand each customer’s financial journey and determine the right service or products they need in the moments that matter the most to them. Not only that, but your technology needs to be able to handle this just as well as your branch network and front-line staff.

Whether your customers are parents saving towards their child's college or someone wanting to continue their education, it is not too late to help them start pursuing the goals that matter the most to them. For far too long, people have been unsure what steps to take, and sometimes the first step is the hardest. So with a little help, your customers won't have to worry any longer.

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