Banks must become active partners in financial wellbeing

In 2026, managing your money should not feel as difficult as it does. 

Around the world, people have instant, around-the-clock access to banking apps and their own financial data. So why do so many people still feel uncertain about their financial future? 

According to the OECD, only 34% of adults meet the minimum target level of financial literacy. 

Combine that with rising living costs, economic uncertainties, and increasingly complex financial products, and you quickly see how, despite having access to intelligent digital banking tools, many consumers struggle to make confident financial decisions. 

At the same time, banks have more visibility into their customers’ finances than ever before. They can see spending patterns, income flows, savings behaviour and credit usage in real time. 

So why do most banking apps still function primarily as transaction dashboards with the majority of customers only opening them to check balances, review recent payments or transfer funds? 

Why banking has traditionally been product-driven

For decades, banks have operated through a product-centric model. Success has largely been measured by the number of accounts opened, loans issued or products sold. 

Customers, meanwhile, are expected to piece together their own financial strategies. They decide how much to save, how to manage debt and how to plan for the future. 

Even when banks introduced budgeting dashboards or spending trackers, these tools often remained isolated features that would show customers where their money was going, but rarely help them understand what to do next. 

As a result, many banking apps became financial mirrors, reflecting behaviours but doing little to change or improve them.

Data and AI are changing the equation

Shifting that narrative is the ability to turn high volumes of financial data into meaningful guidance fast. 

Modern digital banking platforms can analyse transaction data at scale and identify patterns in spending, saving and financial behaviour. Combined with AI advances, banks now have the power to deliver personalised financial insights that were once only available through expensive human financial advisers. 

These tools can suggest realistic savings goals, highlight unnecessary spending or recommend ways to improve financial resilience. Increasingly, they can also react to patterns in behaviour, for example, detecting early signs of financial distress, such as repeated overdrafts or missed payments. This allows banks to intervene before problems escalate that result in further financial uncertainty. 

This shift moves banking from a reactive model, to a more proactive one where banks help customers make better decisions throughout their financial lives.

What this shift looks like in practice

Several digital banking platforms already demonstrate how financial guidance can be embedded directly into everyday banking experiences.

AI-powered financial coaching: BBVA

BBVA has introduced an AI-powered financial coach within its mobile banking app that helps customers assess and improve their financial health. The tool analyses a user’s financial situation, including savings capacity, financial buffers and debt levels, before helping them set goals such as reducing spending or building savings. 

It then suggests personalised actions like identifying unnecessary spending or automating savings. Progress is tracked within the app to encourage users to stay on course and build stronger financial habits over time.

Behavioural budgeting: Monzo

Monzo takes a different approach and focuses on behavioural design. Features such as Salary Sorter and Pots automatically divide a user’s income into separate spending categories as soon as they are paid. This allows money to be allocated to bills, savings or everyday spending. 

This design draws on behavioural finance concepts such as mental accounting, where people naturally separate money into different categories. Structuring finances this way reduces the cognitive effort required to budget and helps users build consistent financial habits. 

Spending insights: Snoop

Snoop focuses on helping users understand their spending patterns. By analysing transaction data, the platform identifies recurring expenses and highlights opportunities to reduce costs. This might include switching providers or cancelling unused subscriptions.

Taken together, these examples show how digital banking apps are evolving beyond simple transaction tools into platforms that actively help customers manage their financial lives.

Why financial wellbeing also makes business sense

Helping customers improve their financial health is not only beneficial for consumers. It can also create advantages for banks. 

Customers who feel supported by their bank are more likely to engage with digital services and maintain long-term relationships. Research suggests that digital financial management tools can significantly increase engagement with banking apps. 

Customers with stronger financial habits are also less likely to experience severe financial distress. This can reduce default risk and improve lending outcomes for banks over time. 

In a competitive market where fintechs and digital challengers continue to reshape expectations, institutions that successfully combine personalisation, digital tools and proactive guidance will not only help customers build stronger financial futures, but also strengthen trust, engagement and long-term loyalty.

The future role of banks

Digital technology is reshaping what customers expect from their financial providers. 

Rather than simply offering accounts, loans, or payment services, banks should rethink the role of digital banking by embedding personalised financial guidance and wellbeing tools into their platforms to help customers make better financial decisions and build greater financial resilience.

As digital banking continues to evolve, the institutions that succeed may be those that shift their focus from simply selling financial products to actively helping customers achieve better financial outcomes.

What better partner to team up with to unleash the potential of digital banking than the five-time Consultancy of the Year (...us). Tell us about what you're working on and discover how we can support over at 11fs.com/ventures