The news: Digital challenger Zopa Bank and credit marketplace ClearScore partnered to launch the Fintech Pledge, an initiative designed to help UK citizens with their financial lives during the cost of living crisis, per AltFi.
More on the initiative: The goal of the program is to drive 10 million positive financial actions by UK citizens by 2025.
The pledge is industry wide, and more partners and programs will be added over time. It aims to unite the fintech industry and has set a goal to reach about 20% of the UK population.
Lots of options: Savers in the UK are flush with options for savings accounts offering higher interest rates.
What consumers want: For quite some time, consumers have been demanding more personalization from their banks. A study from Sinch, a Stockholm-based provider of telecom and cloud communications platform as a service solutions, revealed that by personalization, consumers mean relevant financial advice that fits their current situation.
What’s in it for the banks? While banks and fintechs are messaging their concern for customers through programs such as the Fintech Pledge, it’s not hard to see how they benefit from these programs.
Our take: Programs like the Fintech Pledge offer citizens a sense of community during a crisis. But for FIs, a crisis is a good time to capitalize on their marketing strategy for customer acquisition and retention. Consumers must not be too snowed by promises to help, and FIs must be aware that customer trust hinges on kept promises.
FIs are showing sympathy to consumers to bolster their reputation through the crisis, but they must maintain their efforts to lift up UK citizens afterward, too.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.