How Value-Added Financial Services Are Evolving to Meet Consumer Demand for Financial Security

Today, consumers remain budget conscious and very careful about how and when they spend money due to high grocery and housing prices, adding to financial stress and the everyday challenges of managing their finances. Economic uncertainty, fueled by fluctuating government policies, has only heightened the need for financial stability. Threats of a recession, layoffs, and higher prices due to tariffs is a lot for U.S. consumers to process in a very short timeframe and making them very nervous. In fact, U.S. consumer sentiment fell for the third consecutive month in March, down 22% from December 2024.

In response, many consumers are gravitating to services that help them save and build financial security. This, in turn, is influencing leading banks and fintechs to introduce helpful financial management and savings features designed to support these financial goals.

In the current environment, where the only thing certain is financial uncertainty, many consumers are turning to value-added services that make saving easier and help them provide more of a safety cushion for unexpected expenses. Traditional savings accounts alone aren’t enough; instead, automated, technology-driven solutions are gaining in popularity. Banks and fintechs are offering products that align with consumers' evolving financial behaviors, making digital financial wellness more accessible.

Streamlining Automated Savings and Investing

One example is fintech Acorns' Round-Ups*. With this feature, Acorns “rounds up” everyday purchases to the nearest dollar and invests the spare change to a customer’s Acorns Invest account. This automated approach makes investing for the future near effortless, particularly for younger consumers who prefer digital-first financial tools. 

Similarly, banks have started offering their own versions of round-up tools, such as Bank of America’s Keep the Change, and Nat West’s Round Ups, which both add rounded-up amounts from debit transactions into a customer’s savings account.

Addressing Liquidity Challenges

Overdraft fees have long been a pain point for consumers, particularly those living paycheck to paycheck. The cap on overdraft fees proposed by the CFPB in late 2024 is likely to be overturned by the current administration, making things worse for consumers who incur non-suffiicient funds penalties. 

Recognizing the financial strain caused by overdraft fees, some financial institutions have introduced more consumer-friendly alternatives. Chime’s SpotMe, for instance, allows eligible customers with a Chime debit card to overdraft their accounts up to a pre-determined amount without incurring fees. This feature helps customers avoid costly overdraft charges while still providing access to necessary funds.

Larger banks have taken note and are adapting their overdraft policies as well, recognizing that customer retention depends on offering flexibility rather than punitive fees. In fact, Capital One and Citi both waived overdraft fees for their customers back in 2022. While these and some other large banks proactively adjusted their overdraft policies, others are awaiting the implementation of the CFPB's rule or are exploring alternative approaches to comply with the new regulations. 

With consumer trust playing a critical role in financial services, stronger customer-first policies are likely to become industry standards rather than differentiators.

Building Emergency Savings 

Another significant shift is the focus on emergency savings solutions. Studies frequently show that many Americans would be unable to handle unexpected expenses like a car repair: less than half of Americans having an emergency fund for such things. In response, some financial institutions have integrated emergency savings programs directly into payroll and banking ecosystems.

Voya’s Emergency Savings Solution, for example, is a benefit available for companies to offer employees, allowing them to contribute to an emergency savings account through payroll deductions, much like a 401(k) plan. This approach not only makes saving automatic and frictionless, but also ensures that people will have a dedicated financial buffer for emergencies. 

Helping Customers Stretch Their Dollars Further

Beyond traditional savings and overdraft protection, banks are also leveraging cashback rewards and coupon programs to help their customers save money when shopping online. After all, even in times of economic uncertainty, people still need to buy things. Kids grow out of clothes and shoes, consumer staples run out, appliances break down. The need to make their money work harder means consumers are keen to take advantage of these types of savings-enablers. 

Shopping rewards and coupon programs, often integrated into digital banking platforms or browser extensions, provide a bank’s customers with automatic discounts, cashback, or exclusive deals when consumers make purchases through eligible online merchants.

For example, financial institutions have partnered with fintech platforms to offer cashback programs that reward customers for shopping through their bank’s app or website. These solutions not only incentivize customer engagement but also offer tangible financial benefits in the form of savings to customers, making their  everyday spending more cost-effective. 

Some banks take these savings programs a step further by partnering with local service providers or stores with physical locations to provide card-linked offers that allow customers to get discounts on in-person purchases as well.

By integrating savings tools like these into their ecosystems, banks and fintechs are reinforcing their role as financial allies that help customers stretch their dollars further. In the long run, these offerings can also increase customer loyalty because consumers recognize that their bank is aligned with their financial goals and is a provider of valuable cost savings.

Looking Ahead: The Future of Consumer Banking

As economic fluctuations continue, consumers will prioritize financial security, and banks will need to continue adapting to meet these needs. The adoption of value-added features like automated savings, flexible overdraft policies, embedded emergency funds, and savings tools like shopping rewards programs, will hopefully become industry standards.

Moving forward, financial institutions that prioritize these value-added services will differentiate themselves in an increasingly competitive market. Those that successfully integrate financial wellness tools into their offerings will not only improve customer retention but also strengthen their position as trusted financial partners.

* Acorns is a Wildfire Systems’ partner