1. Financial Health
Nancy Castillo

4. About CFSI CFSI Connect Advise Inform Innovate
The Center for Financial Services Innovation is an authority on consumer financial health, leading a network of financial services innovators committed to building better consumer products and practices.
Connect
We foster dialogue and collaboration through CFSI events and networking opportunities.
CFSI
Advise
We offer consulting services to both for-profit and nonprofit providers.
Inform
We provide deep consumer insights and industry research.
Innovate
We seed and test promising new ideas.

6. 57% of Americans are struggling financially
138M People
Understanding and Improving Consumer Financial Health in America, CFSI, 2015

8. Janice

9. Janice

10. \
Why?

11. Business Case for Financial Health
Customer retention
Profit per customer
Intangibles
Total Value
Source: Gallup Retail Banking Industry Study, 2015

12. = cost of financial matters per employee
$7,000 per year
= cost of financial matters per employee

14. Financial Health Journey
ORIENT Understand Financial Health
ALIGN Consider Financial Health within the Context of Your Company
DIAGNOSE Benchmark Your Customers’ Financial Health (Diagnose Employees’ Needs)
DESIGN Develop Strategies to Improve Financial Health (Identify and Implement Appropriate Solutions)
DELIVER Launch Your Financial Health Strategy (Drive Engagement)
TRACK Monitor Shifts in Your Customers’ Financial Health (Measure Your Efforts)
IMPROVE Evaluate Your Strategies for Greater Impact
ORIENT
ALIGN
DIAGNOSE
DESIGN
DELIVER
TRACK
IMPROVE

15. ORIENT
ALIGN
DIAGNOSE
DESIGN
DELIVER
TRACK
IMPROVE

16. ORIENT
ALIGN
DIAGNOSE
DESIGN
DELIVER
TRACK
IMPROVE

17. Financial Health Measurement Framework
You are financially healthy when you…
SPEND
1. Spend less than income
2. Pay bills on time and in full
SAVE
3. Have sufficient liquid savings
4. Have sufficient long-term savings or assets
BORROW
5. Have a sustainable debt load
6. Have a prime credit score
PLAN
7. Have appropriate insurance
8. Plan ahead for expenses
SPEND
SAVE
BORROW
PLAN

18. CFSI Financial Health Score™
Spend XX
Save
Borrow
Plan
Fin Health Score
XXX
Provides a holistic, moment-in-time snapshot of an individual’s or group of customers’ financial health.
Based on eight multiple choice questions that align with CFSI’s indicators of financial health.
Provides one CFSI Financial Health Score™ and four sub-scores.
The score is designed to be simple, straightforward, and easy-to-use; a starting point to measure and improve your customers’ financial health.
Fin Health Score overview

19. Financial Health Measurement Uses
Enterprise Level Metrics
Individual Level Metrics

20. ORIENT
ALIGN
DIAGNOSE
DESIGN
DELIVER
TRACK
IMPROVE

21. Financial Health Levers
Products
Programs
People & Places
Products
Tools
Services
Financial advice
Guidance
Resources
Channels
Segment strategies
Employees

22. Financial Health Programs
Light Touch Financial Advice
Financial Health Assessments
Financial Coaching
In addition to high quality products, well designed processes, experience and other services such as financially assessments and advisory programs can also be impactful.
In our experience successful programs have 4 keys themes to success.
First we must be timely- Delivering information at a moment of decision making can provide immediate feedback that helps consumers better understand the consequences of their behavior.
For example- low balance alerts would prevent a consumer for making a purchases that would result in an overdraft. They then send an about ways one can prevent overdrafts in the future.
Second, the programs must be actionable- providing a F.H Score with an action plan can be very empowering
Third, these efforts must be ongoing- repitition is key to learning
Light touch approaches such as repeated alerts and texts that are delivered electronically can also effective.
This device can be shared through actionable tools and you can interact with chat boxes to help customers in even more complex decisions
Finally these kinds of programs can be more effective when they are integrated with the underling product
This allows consumers to put their knowledge into action
Keys to success: Timely, Actionable, Ongoing, and Integrated

25. ORIENT
ALIGN
DIAGNOSE
DESIGN
DELIVER
TRACK
IMPROVE

26. Janice

29. Questions?

30. Thank You