Prioritizing familial relationships in banking services is the upcoming trend for customer service enhancing.

In the rapidly evolving world of banking, a new concept is gaining traction – Family-First Banking. This innovative approach, aimed at attracting and retaining customers, positions banks not just as competitors against each other, but also against personal banking fintechs.

According to a survey by J.D. Power, customers are more likely to stay with and reuse a bank that supports them during challenging economic times. This support can take various forms, as banks explore tools and features such as age-specific educational content, unique user dashboards, parental alerts, and triggers for major milestone events.

For instance, parents can receive timely recommendations on when to invest in a tax-free 529 college fund based on their child's birthdate and past contributions. This personalized approach can significantly improve financial knowledge and customer retention, although it may not fully close the financial literacy gap.

Zur Yahalom, SVP and Head of Financial Services at Amdocs, a leading software and services provider, is a proponent of this family-first banking model. Amdocs is set to showcase its solutions at Money 20/20 USA, October 22-25, Booth 10001.

However, it's important to note that, at the time of writing, no specific banks have been named as partners with Amdocs for a "family-first banking" implementation. Nonetheless, banks can overcome this hurdle by focusing on solutions and finding the right tools and partners.

Customers worldwide prefer a more personalized banking experience, including financial guidance tailored to their family's life stages and needs. This preference, coupled with the desire for improved offerings, has led to 77% of consumers being willing to share more personal information with their bank.

Banks can develop differentiated financial experiences by utilizing data analytics, artificial intelligence, and a mix of software and services. By doing so, they can segment families for better access and management across multiple generations, offering highly personalized services.

Moreover, a more personable and relatable banking experience is likely to be more appealing to customers. This approach can help banks manage the limitations faced by customers with available solutions when it comes to managing family finances, leading to practices like password sharing and excluding children from the financial system.

In a family-first banking model, customers can personalize their family permissions, allowing for tailored services for each family member's unique needs. This personalization can help overcome these practices, making banking more accessible and inclusive for all family members.

In conclusion, the concept of family-first banking offers a promising future for the banking industry. By leveraging technology to gain insights into each customer's household makeup and helping families achieve their unique financial goals, banks can provide a more personable and relatable banking experience, ultimately leading to increased customer retention and financial literacy.

Prioritizing familial relationships in banking services is the upcoming trend for customer service enhancing.