The more financial coaching people receive, the more financially resilient they’ll become.
That’s what a recent study conducted by NeighborWorks® America affirms. In fact, NeighborWorks found that borrowers who enrolled in its pre-mortgage purchase counseling program were one-third less likely to fall behind on their house payments.
This research reaffirms something we think a lot about at Bank of America: How do we best serve the financial needs of people and how do we connect with our customers in a way that ensures shared success?
We know that when people have the tools and knowledge they need to be responsible borrowers, they set themselves on a path to a better financial future. It’s not just paying the bills, but it’s what that financial stability provides—the opportunity to save for special occasions, to invest in education or buy a home. It’s about a whole community of people living and working and creating strong local economies that attract businesses that bring jobs and continued prosperity.
Offering individuals the resources to manage finances is the best way for banks to positively impact our consumers, our communities and our business.
It’s because we know this that we partnered with Khan Academy, a not-for-profit with the sole purpose of delivering a free world-class education for anyone, anywhere. And we kept to the idea of free. We don’t advertise products on the site BetterMoneyHabits.com and the site is open to customers and non-customers alike. Khan Academy has editorial control of the content of the site.
For a bank, investing in communities by offering consumers the ability to become financially self-sufficient isn’t the “good” or the “right” thing to do. It’s the smart thing to do because it benefits customers and bolsters bottom lines.
Kerry Sullivan is the president of the Bank of America Charitable Foundation.