- A cutting-edge strategy combines concepts of financial health, personal health, and environmental care to offer financial services
The traditional banking model is transforming, with new concepts such as Healthy Banking emerging as potential game-changers.
This strategic proposal aims to transcend the realm of efficient financial transactions, encompassing a holistic approach that prioritizes the well-being of the financial customer, harmonizing 3 interconnected aspects:
Personal Health
Healthy banking initiatives can incentivize healthy habits such as regular exercise or preventive healthcare, fostering a positive impact on the overall well-being of customers.
Planetary Health
Integrating environmentally conscious practices within banking operations and encouraging customers to adopt sustainable habits falls under the umbrella of planetary health.
Financial Health
This entails empowering customers to make informed financial decisions, manage their finances effectively, and achieve their financial goals. In this recent report by Frecuencia Money, we have extensively explained the concepts of Financial Well-being with included success stories; in the report we detail that increased engagement and increased deposits are the verifiable results of proactive strategies focused on financial well-being and customer satisfaction.
Abanca’s lead
A recent example of healthy banking in action comes from Abanca, a Spanish bank, which announced the launch of B100.
This digital banking platform incentivizes customers to walk more by offering financial rewards linked to their daily steps. Additionally, a portion of the income generated through its “Pay to Save” debit card is directed towards fighting plastic pollution in the oceans, reflecting its commitment to planetary health.
Abanca, headquartered in Galicia, Spain, has a long history of social commitment and sustainability.
The concept of healthy banking is not entirely new. Some traditional financial institutions have offered wellness programs or educational resources to promote financial literacy. However, the current emphasis on a comprehensive approach that encompasses personal and environmental well-being alongside financial health marks a significant shift.
Several factors contribute to the rise of healthy banking. One is undoubtedly the changing preferences of consumers, who are increasingly drawn to brands that align with their values and demonstrate a commitment to social responsibility. But the regulatory landscape also plays a role, establishing a recognition of the interconnectedness of financial, personal, and environmental well-being.
While the long-term impact of healthy banking remains to be seen, it presents a unique opportunity for financial institutions to differentiate themselves, attract and retain customers, and foster a more sustainable future.