Banks & Credit Unions are Using Financial Wellness as a Business Strategy

Financial Wellness at a Glance:

• Financial institutions are becoming coaches and educators focused on financial wellness
• Financial educational programs build community trust and improve bank assets
• Credit union members who participate in financial literacy programs increase savings rates by 28% in just 12 months

America has a financial literacy problem. On average, US adults correctly answer only about 50% of the questions on the annual Personal Finance Index, a survey of consumer confidence around financial topics. The knowledge gaps are even more pronounced across demographic groups, with men scoring eight percentage points higher than women and significant disparities across race and generations. This broad lack of financial savvy has real-life consequences. A report by the National Financial Educators Council found the lack of financial literacy cost Americans $246 billion in 2025, from a mix of weak decision-making, excessive borrowing, and inadequate retirement savings. Recognizing the financial literacy crisis, 26 states now require financial education for high school graduation.

As banks and credit unions adopt more of an advisory approach to their core business, they’re also becoming educators, coaches, and advocates for customers and members, shifting from a reactive approach centered on fraud prevention to a more proactive focus on financial wellness. Instead of asking only, “How do we protect customers from scams?” many banks and credit unions are asking, “How can we help customers make better financial decisions before they become vulnerable?” Increasingly, the answer is financial education and coaching, offered as a core service through both broad-based and targeted programs.

Fraud Prevention as a Learning Opportunity

Fraud prevention is one of the clearest examples of this shift in action. Rather than relying solely on technology to detect suspicious activity, many financial institutions are pairing fraud tools with customer education to help people recognize scams before becoming victims. Bank of America offers in-person fraud and scam prevention seminars and offers Better Money Habits, a platform featuring articles, videos, tools, and community workshops. California-based Star One Credit Union hosts webinars and visits senior centers to educate members about scams, while Fifth Third allows customers to upload suspicious emails, creating opportunities for both fraud detection and consumer awareness.

Financial Wellness as a Core Service

Beyond fraud prevention, banks and credit unions are expanding their efforts to include ongoing coaching and wellness. For example, USC Credit Union offers one-on-one financial coaching, educational resources, fraud-awareness content, and guidance on budgeting, debt management, credit building, and homeownership. “These programs equip members with technical skills,” according to CU Management. “While empowering them to make informed decisions, build resilience and, ultimately, achieve financial well-being – where money is a tool for a fulfilling life, not a source of constant anxiety.”

The goal extends beyond delivering information to helping members build the knowledge and confidence to make sound financial decisions over time. The key to success is not in creating long, one-off seminars people have to sit through, but providing resources that deliver ongoing support that build long-term relationships with members. That sustained approach is also proving to be a competitive advantage. Industry publications increasingly describe financial wellness as a strategic differentiator rather than simply a member benefit. Data shows that members who participate in these programs increase savings rates by 28% in just 12 months.

From Classrooms to Communities

Financial institutions aren’t just evaluating credit anymore – they’re helping customers build it. The Office of the Comptroller of the Currency (OCC) notes that “banks increasingly recognize the benefits of helping improve their customers’ credit scores so they can obtain credit from banks.” To support that goal, the OCC highlights bank-led initiatives that combine financial education with payment reminders, credit-building tools, and community outreach to improve long-term financial health. That commitment extends across every stage of life.

With Teach Children to Save, American Bankers Association member banks share resources to help elementary and middle-school students learn good savings habits through free, banker-led outreach. Across the country, community banks are building on those efforts with customized education initiatives. Many provide curricula for high school students, from “spot the scam” quizzes to teller training in school-based branches. “It’s a duty as a community bank to take on this challenge to educate our youth to create a better environment, says Steven Sullentrop, president and CEO of Wichita-based Legacy Bank, in Independent Banker. “These are the future entrepreneurs… If we can connect them to the bank and that has direct benefits to us, great, but it all makes the world go round.”

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