ABN AMRO takes active approach to helping clients avoid debt and related stress

More and more people in the Netherlands are worried about money, according to an annual financial health survey focusing on Dutch households recently conducted by Deloitte in collaboration with the National Institute for Family Finance Information (NIBUD) and Leiden University. ABN AMRO has made it a priority to help its clients prevent money-related stress. “A clear understanding of your personal finances can often help you regain a sense of financial freedom,” says Laura Wetser, Head of Financial Health at ABN AMRO. “So we’re putting our expertise to work for our clients by offering them free budget coaching, among other initiatives.”

Talking about debt before it happens

Laura says, “It’s important that clients who are worried about money talk to us before they get into problem debt. As the saying goes, prevention is better than cure. Our Financial Health Coaches can then discuss their financial situation and its underlying causes to provide perspective and help them get a better overview.” Together they look at ways to save or boost income, find any benefits the client may be entitled to but hasn’t applied for, and even ways to make the home more energy-efficient – all in an effort to create financial breathing room. “We also refer clients to government agencies that may be able to help them further,” says Laura.

Removing barriers

But contacting the bank can be tough for clients facing money problems. That’s why ABN AMRO is removing as many barriers as possible, Laura says: “Information on how to get help for those facing financial difficulties is just a few clicks away via the bank’s online channels.” Clients can even schedule a free consultation with a Financial Health Coach on the website or in the ABN AMRO app. “The session takes place via video banking so clients can stay in their own home, which helps them feel more comfortable,” Laura explains.

Going it alone

Talking about the problem is the first step towards finding a solution and usually comes as a big relief, Laura says: “People with financial problems generally don’t want to ask for help. In fact, they typically think that it’s their own responsibility to sort it all out and that they’re the only ones who are worried about their finances. The truth is, almost anyone can find themselves in financial difficulty – as a result of a divorce or a loss of income, for instance.” It’s a common misconception that only those in lower income brackets have money problems, Laura continues: “Higher-income clients can be affected, too. The more affluent often have higher spending patterns, so a drop in income can quickly lead to problems.”

Timely identification is key

While clients can easily make an appointment to speak to a Financial Health Coach, the bank also contacts clients proactively to head off potential problems. Laura explains, “We step in if we think we can help. And by adjusting a number of our processes, we’re able to identify problem cases faster. Possible red flags include a client falling behind on loan repayments or if a client’s online application for a personal loan has been denied.”

Preventing financial stress

Clients can sometimes be intimidated at first, Laura admits, but this proactive approach has proved its effectiveness time and again. Once they get over the initial shock, clients are often pleasantly surprised that the bank has taken proactive steps to help them. “Money problems can pile up fast if no action is taken – that’s exactly how people fall into debt,” says Laura. The financial stress of it all can even lead to health problems, according to research by the Trimbos Institute. Laura continues, “We know this type of stress can consume a lot of energy and is detrimental to performance on the job or in the classroom. That’s why prevention is important both for our clients and for society as a whole.”

Working together

It’s also why ABN AMRO has joined forces with other stakeholders to contribute to a financially sound country. One of them is the Dutch Debt Assistance Route, a helpline for people facing financial problems. The bank is also a member of the Nationale Coalitie van Financiële Gezondheid (National Coalition for Financial Health), which includes a number of large companies, government authorities, banks and insurers who are working together to ensure that the Netherlands is financially fit. Additionally, ABN AMRO’s own initiatives are aligned with the national policy of the Ministry of Social Affairs and Employment to combat financial problems, poverty and debt. The aim is to reduce by at least half the number of people facing problem debt by 2030.

Young people

Prevention is particularly important when it comes to vulnerable target groups such as young people, 45 per cent of whom are financially vulnerable, according to research carried out by Deloitte. Partly because of their focus on the short term, younger people can be easy targets for deferred payment schemes from the likes of Klarna and even online gambling. Laura explains, “ABN AMRO focuses in a number of ways on financial education for young people to ensure they become financially literate from an early age. Studies have consistently shown that children who have learned to manage their money by the age of eighteen are less likely to encounter financial problems as adults.” A good example of the bank’s commitment to this target group is the Gimi money app for very young clients aged eight to thirteen. The app is available to all children in the Netherlands, regardless of whether they bank with ABN AMRO.

Laura continues, “We also give workshops for students, and have a strong presence at open days on university campuses. Plus we make our information available via online and offline channels to meet the needs of young people and students. Our coaches are ready to help young people and their parents get their finances in order.” The bank believes it’s important to equip the next generation with financial knowledge and skills. “That’s why our coaches are happy to help young people, even if they’re not yet ABN AMRO clients,” Laura emphasises.

A focus on savings

Each and every day, the bank’s Financial Health Coaches see what a difference individual insight into money matters can make. Laura says, “Usually, just one conversation with a coach puts a person back in control of their finances. It gives them peace of mind and minimises stress.” The bank is also using the lessons learned from these sessions to improve its services, Laura adds: “So many of us are looking for ways to save on our expenses, but putting money aside can be hard, especially now that the cost of living has soared.” That’s why ABN AMRO has launched a service to help clients save. “We’re calling it the Bespaarcoach (Savings Coach) to raise awareness of the service. When a user indicates in the ABN AMRO app that they’d like to reduce their expenses, one of our coaches will then contact them by phone to discuss how best to start saving given the client’s situation.”

Since its launch, the service has been used by a large number of clients. It’s yet another way for the bank to communicate with and help clients who are financially vulnerable. A short conversation about savings can give them better insight and a sense of security, knowing that their finances are in order. These aren’t just clients on low incomes either, says Laura. Higher-income clients are signing up, too. “I think it’s terrific that the bank is helping as many people as it can to create a financially healthy future for themselves,” Laura says.