Empower your PARTICIPANTS with comprehensive financial education

What is Embedded Financial Education? 

comprehensive financial education

Embedded financial education provides users with the education they need to make a decision or move forward in their financial life, within an app or service that they already use.

A recent study by CNBC found that over three-quarters of working Americans say they are stressed about money. Many people have questions about their financial choices but easily get lost searching the web for the information they need. How will individuals know where to get help if they need urgent financial assistance? How can they be confident they can trust whatever an internet search turns up? With so many distractions, how can financial education providers make it easy for people to quickly find what they’re looking for?

Embedded financial education meets users in their day-to-day activities and equips them with the right information to make key financial decisions. This type of education, embedded within an existing financial product, provides the opportunity to carefully curate the user journey and guide them step-by-step through a specific decision or application.

Consider how the dawn of in-app payments allowed for a frictionless consumer experience. No need to pull out a credit card, or take out cash - simply tap to reload and buy your triple shot, skim latte with extra foam. Embedded financial education provides that same frictionless experience for users.

Integrated education eliminates the need to navigate to external resources, but instead delivers timely guidance to the consumer at the point of decision. If a consumer is researching a topic or applying for a product, they have already indicated their interest and are primed for educational resources. What’s more, embedded financial education can also offer key insights for product marketers, by delivering reports showing what type of educational content is getting the most traffic.

Financial education content can be integrated seamlessly into fintech apps or products like online banking tools, credit card applications, lending platforms, etc. Embedded education helps users understand their options before they make a decision and can keep them in-app or on-platform longer. People have short attention spans, so this kind of embedded resource is a prime opportunity to harness the power of a focused moment and help consumers make informed financial decisions.

Here are some potential scenarios where embedded financial education could be helpful:

  • When applying for a loan, a consumer is offered an educational resource that explains the repayment terms, interest accrual, and overall life of the loan. 
  • When applying for a credit card, a consumer is offered a walk-through guide, explaining the terms, the APR, the length of the promotional period, etc. If their application is accepted, they’ll receive a resource with tips on how to use credit responsibly. If their application is rejected, they’ll receive an engaging video explaining how to safely build credit. 
  • When opening a savings account, a banking app offers the consumer a video that defines and explains key terms like compound interest, APY, balance requirements, and monthly fees. This educates the consumer and reduces frustration with the product later by clearing up misunderstandings early on.

Of course, there are endless ways that financial guidance can help users make decisions. Embedded financial education opens up a new world of opportunity to help consumers make good choices and give companies informed insights, so they can offer users the right information or resources at the right time. 

To learn more about how SmartPath is paving the way for embedded financial education, check out this short piece about how we partner with Fintech companies.