• Brian Costello, VP of Data Strategy at Envestnet|Yodlee


• 07.02.2020 08:54 am

An exclusive interview with Brian Costello, VP of data strategy at Envestnet|Yodlee

Financial IT: What is financial wellness?

Brian Costello (BC): Similar to physical and mental wellness, financial wellness is the equivalent of having a check-up with your doctor to discuss your health metrics and compile a concrete get-well plan to get on track. New tools are being developed across the fintech sector, to help consumers better understand and control their finances. These tools can analyse the likes of the consumers daily spend, income and even where they spend the majority of their income.

Financial institutions can use the insights generated by these tools to better understand the customer and better provide advice on financial decisions.

Financial IT: What demographic benefits most from financial wellness?

BC: When it comes to financial wellness, there is no exclusive demographic that benefits more than any other. The way a bank must approach each demographic, however, needs to be focused.

Those who have just left school and are about to start university, for example, might not be interested in hearing advice on how to pay off their mortgage. But will be more interested in how they can make their student loan go further.  It is also important that banks work out how best to communicate the advice with each customer.  While millennials may be more comfortable communicating through an app or online; baby boomers who are used to doing things in person may prefer to speak at their local branch. These considerations will be key if banks are able to help their customers, no matter their age, benefit from financial wellness.

Financial IT: How have fintechs shaken up the status quo when it comes to financial wellness tools?

BC: As the financial sector moves to streamline processes previously viewed as too time consuming or bureaucratic, FIs need to focus on increasing user engagement via appealing tools which personalise banking services. Fintechs have been able to do this, by capitalising on the need for tools which empower the consumer when it comes to their finances.

The development of these tools by fintechs across the globe is also making consumers question why their current FIs do not offer equivalent or better solutions. This is where banks must improve.

Financial IT: What can Yodlee offer FIs to improve their financial wellness services?

BC: Yodlee’s financial wellness tools use the likes of AI and machine learning, to measure consumer’s financial data, monitor their financial health, and automate and improve daily financial management around spending, saving, borrowing, and planning.

This way, FIs can offer financial wellness solutions which provide personalised insights and recommendations alongside financial coaching. The use of these types of tools also provides FIs with an opportunity to position themselves as a valued partner, which consumers can trust to look after their financial health and wellbeing. 

Similar to physical and mental wellness, financial wellness is the equivalent of having a check-up with your doctor to discuss your health metrics and compile a concrete get-well plan to get on track. New tools are being developed across the fintech sector, to help consumers better understand and control their finances. These tools can analyse the likes of the consumers daily spend, income and even where they spend the majority of their income.

Financial institutions can use the insights generated by these tools to better understand the customer and better provide advice on financial decisions.

Financial IT: What demographic benefits most from financial wellness?

BC: When it comes to financial wellness, there is no exclusive demographic that benefits more than any other. The way a bank must approach each demographic, however, needs to be focused.

Those who have just left school and are about to start university, for example, might not be interested in hearing advice on how to pay off their mortgage. But will be more interested in how they can make their student loan go further.  It is also important that banks work out how best to communicate the advice with each customer.  While millennials may be more comfortable communicating through an app or online; baby boomers who are used to doing things in person may prefer to speak at their local branch. These considerations will be key if banks are able to help their customers, no matter their age, benefit from financial wellness.

Financial IT: How have fintechs shaken up the status quo when it comes to financial wellness tools?

BC: As the financial sector moves to streamline processes previously viewed as too time consuming or bureaucratic, FIs need to focus on increasing user engagement via appealing tools which personalise banking services. Fintechs have been able to do this, by capitalising on the need for tools which empower the consumer when it comes to their finances.

The development of these tools by fintechs across the globe is also making consumers question why their current FIs do not offer equivalent or better solutions. This is where banks must improve.

Financial IT: What can Yodlee offer FIs to improve their financial wellness services?

BC: Yodlee’s financial wellness tools use the likes of AI and machine learning, to measure consumer’s financial data, monitor their financial health, and automate and improve daily financial management around spending, saving, borrowing, and planning.

This way, FIs can offer financial wellness solutions which provide personalised insights and recommendations alongside financial coaching. The use of these types of tools also provides FIs with an opportunity to position themselves as a valued partner, which consumers can trust to look after their financial health and wellbeing.