Ally Bank launches live financial wellness workshops for the public

Financial ally is launching virtual workshops for the public that delve deeper into people’s needs. Thoughts, feelings and complexes about money instead of teaching hard skills.

The bank of Detroit Ally will launch its monthly series in September. Each of the four standalone workshops will be limited to 50 attendees and held live, with Jack Howard, Director of Monetary Wellbeing at Ally, moderating the conversations. The goal is to examine how mindsets and behaviors impact spending, saving and investing decisions.

“Historically the financial literacy journey “The program has been skills-based,” Howard said. “If we’re going to help people move forward on their financial path, this is a missing piece that should be available to everyone.”

Financial wellness seminars aren’t a new concept, says Dylan Lerner, senior digital banking analyst at Javelin Strategy & Research. Many banks and credit unions already host virtual and in-person financial education events, which he says typically don’t get a wide following. Sometimes they serve more as a marketing tool.

But one trend she’s been following is financial institutions incorporating financial wellness or money conversations into branches. For example, the list of reasons to schedule an appointment at Wells Fargo goes beyond opening accounts to “managing spending and saving”; “building credit and reducing debt”; and “the death of a loved one.”

“How do you create that sense of community and remind customers that we’re not just here to take their money?” Lerner asked.

As an online-only bank, Ally, with $193 billion in assets, doesn’t have this option in the branch and must build community in other ways.

The four virtual workshops will last one hour each. They will focus on managing money-related emotions, investigating how early money-related memories influence current trends, identifying money-related values, and managing financial decisions in romantic relationships. Howard consulted with people in the fields of behavioral finance, financial therapy, and money psychology to develop the program.

Attendance is limited to 50 people because “the topics being discussed require a level of vulnerability,” Howard said. “We want to be sensitive in creating an environment where people feel safe.” People can choose to leave their cameras off and type in any name they want in the Zoom session. They can opt in to receive additional communications and resources from Ally. Ally does not promote its own products during the workshops, though its financial education resources are mentioned in the workbook materials.

If demand is overwhelming, Howard might add more classes. Ally declined to say how many people have signed up so far.

The program follows a year of pilot classes, taught both online and in person. Howard found that some participants were actively engaged while others listened quietly, and “I respect both,” she said.

I also frequently received follow-up messages from quieter people who wanted to tell more about their money story.

“I’ve heard everything from, ‘I grew up homeless and that influenced my financial history,’ to, ‘My mom was a financial advisor and I have money but I’m afraid to spend it,'” Howard said.

Lerner notes that many of the workshops focus on credit or the 50/30/20 budgeting rule, “which hasn’t changed in 20 years,” she said. “But there’s also this shift toward a better understanding of behavioral finance.”

To spread the word, Ally erected a “money tree” in New York City in August and is hosting a raffle with cash prizes that correspond to common, stress-inducing expenses, such as the annual cost of child care in the U.S., which is $18,900, or the average monthly credit card payment of $430. Ally has spearheaded a number of creative initiatives Marketing campaigns In the past, including the “islands” in the Animal crossing and Fortnite Video games and immersive augmented reality experiences Tied to the Super Bowl or Monopoly.

It is not clear how effective these financial education workshops are or whether there is a better solution.

Lerner wonders if a limited-attendance webinar will make a difference.

“Will it enable your customer base to reach the financial level that they are at? We don’t want to dismiss these issues. We understand that this is true from a community perspective,” he said. “But we believe there are better ways to offer those things to your customers.”

Instead, Lerner sees more potential for engaging digital tools on the authenticated site and mobile app, such as cash flow analytics, predictive alerts or debt repayment planning. Lerner has been a loyal Ally customer “since his days at GMAC” and considers its savings deposit functionality to be among the best in the industry. But he believes Ally, like many other banks, lacks a robust set of financial wellness tools.

He is also surprised, as a long-time Ally customer, that he has not received any notice about these workshops.

“For me, it’s more of a gesture of goodwill toward the consumer community and a way of saying ‘we care,'” he said.