In recent years, there has been a growing recognition of the role that larger banks can play in supporting those who are less affluent. With the resources and expertise at their disposal, these banks have the potential to make a significant difference in the lives of individuals and communities, particularly when it comes to financial planning and coaching.
Financial planning is an essential component of managing personal finances, and it can be particularly challenging for those who are less affluent. Many people in this group may lack the knowledge and tools needed to make informed decisions about their money. By offering financial planning services, larger banks can help to bridge this gap and support these individuals in building a stronger financial foundation.
One way that larger banks can provide financial planning services is through their branch network. Many banks have dedicated financial advisors who can help customers to develop a personalized financial plan based on their unique circumstances and goals. These advisors can also provide ongoing coaching and support to help individuals stay on track and make the most of their financial resources.
Some banks have also established organizations that focus specifically on providing financial planning and coaching services to those who are less affluent. For example, Wells Fargo has a program called Hands on Banking, which offers free financial education resources and workshops for individuals and families. Similarly, Bank of America has established the Better Money Habits program, which offers a range of financial planning tools and resources to help people manage their finances more effectively. On February 15, 2023 TD Bank N.A. announced a five-year Community Benefits Plan (CBP) developed in coordination with the National Community Reinvestment Coalition (NCRC), according to the Bank’s website “CBP will benefit a diverse and underserved communities through lending, philanthropy, banking access and other activities.”
By offering financial planning and coaching services, larger banks can help to empower individuals to take control of their financial lives. This can have a range of benefits, including helping people to build savings, reduce debt, and achieve their financial goals. In turn, this can lead to greater financial stability and security, which can have a positive impact on individuals, families, and communities as a whole.
There are also broader societal benefits to providing financial planning and coaching services to the less affluent. For example, when individuals are better able to manage their finances, they are less likely to experience financial stress and hardship. This, in turn, can reduce the burden on social services and other forms of public assistance. Additionally, when individuals have greater financial stability and security, they are more likely to make positive contributions to their communities and the economy as a whole.
Larger banks have the potential to play a significant role in supporting those who are less affluent, particularly when it comes to financial planning and coaching. By offering these services, banks can help to empower individuals to take control of their financial lives and build greater financial stability and security. This, in turn, can have a positive impact on individuals, families, and communities, as well as on society as a whole. Major banks such as Wells Fargo, Bank of America and TD Bank N.A. are leading the way in this area, and it is likely that we will see more banks follow suit in the future, taking steps toward supporting those who are less affluent.