Community banks can and should play a pivotal role in the financial well-being of their customers. Marketing the importance of national observances dedicated to that well-being, such as National Consumer Protection Week (NCPW) and National Financial Literacy Month, contributes to both a customer’s financial literacy and the bank’s image as a trusted financial partner. Observances such as these are particularly essential at a time when financial literacy is on the decline and fraudulent activity is on the rise.
Financial Literacy on the Decline
The TIAA Institute-GFLEC Personal Finance Index (2024) reveals that financial literacy among U.S. adults has been on a downward trend, “with many individuals functioning with a poor level of financial literacy.” In 2023, on average, U.S. adults answered 52% of the index questions correctly, while in 2024 that number dropped to 48%.1 This decline is concerning, as financial literacy is essential for making informed decisions about saving, investing, and managing debt. With rising economic uncertainty, the need for financial education has never been greater. Without proper knowledge, individuals may fall victim to predatory lending, struggle with budgeting, or fail to plan for long-term financial security. Now more than ever, financial organizations – like community banks – can (and should!) equip individuals with the necessary tools to navigate an increasingly complex financial landscape.
Fraudulent Activity on the Rise
Fraudulent activities, notably Synthetic Identity Fraud, Account Takeover (ATO), and Authorized Push Payment (APP) have seen a significant surge in the United States. Synthetic Identity Fraud involves creating fictitious identities by combining real and fabricated personal information. Account Takeover fraud, where criminals gain unauthorized access to individuals' financial accounts, has also escalated. In 2024, 24% of consumers reported being victims of ATO, a rise from 18% in 2023.2 Authorized Push Payment fraud, which involves transactions where the account holder knowingly initiates a payment to a fraudster after being deceived into doing so, is also on the rise – thanks to more sophisticated fraud tactics and the prevalence of online and mobile banking.
Unique Opportunities for Community Banks
National Consumer Protection Week (NCPW), observed from March 2-8, and National Financial Literacy Month in April, present community banks with superb opportunities for showcasing their dedication to their customers’ financial well-being and piggyback off of the social movement these observances have in the community. By demonstrating their support of these observances – through messaging and educational events – banks can empower customers with essential financial knowledge while reinforcing the important role they play as trusted financial partners.
The Benefits to Banks
By aligning with these national initiatives, community banks can realize several advantages:
- Strengthen customer relationships: Offering educational workshops or seminars during these observances positions the bank as a trusted advisor, deepening customer loyalty. Banks can also partner with local schools, businesses, and community organizations to broaden the reach of financial education initiatives.
- Enhance image as supporter of the community: Participating in or sponsoring local events related to financial literacy demonstrates the bank's commitment to community development, enhancing its public image.
- Differentiate themselves: In a competitive banking environment, providing personalized value-added services, such as educational events, sets community banks apart from larger institutions and neobanks.
How Banks Can Help Consumers
Understanding financial protection and effective money management are essential to a lifetime of successful financial decision making:
- Educated consumers make better informed decisions, safeguarding themselves against scams and fraudulent activity.
- Proficiency in budgeting, saving, and investing contributes to personal financial stability. Such stability not only benefits individuals but also bolsters the economic health of the community.
- Sound money management practices facilitate wealth building over time, allowing consumers to achieve financial goals such as homeownership, education, and retirement planning.
How Bank Marketing Center Can Help Banks
By actively promoting and participating in National Consumer Protection Week and National Financial Literacy Month, community banks not only enhance the financial know-how and well-being of their customers, but also solidify their role as essential members of their communities.
Bank Marketing Center offers a comprehensive library of customizable templates, enabling community banks to effectively engage customers prior to, and during, these observances. The templates range from social media posts, ads, and in-branch signage to direct mail, brochures, and statement stuffers. Importantly, the variety of templates offered by the library enables banks to develop dedicated financial literacy campaigns centered on these events that span their entire marketing channel continuum, from in-branch to online, with consistent, cohesive messaging.
Bank Marketing Center
We’re Bank Marketing Center, the leading, subscription-based provider of automated marketing services to community banks. Our goal is to help bank marketers with topical, compelling communication with customers that builds trust, relationships, and revenue. And we do this through automating critical bank marketing functions, such as content creation, social media management and digital asset management, as well as regulatory and brand compliance.
We also want to share what we know – and learn along the way – with all our community banking friends. Whether it’s the latest on AI technology, suggestions on how to attract and retain top talent, or the importance of data protection, we’re here to make bank marketing the best that it can be.
Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.
1TIAA. “Financial Well-Being and Literacy in a High Inflation Environment” April 20, 2023.
2Experian. ”Global Fraud Trends Report - 2024.” November 2024.