It’s been a bumpy few years, starting with the pandemic, then persistent inflation, rising housing costs, and uncertainty surrounding economic policy. In the U.S., 77% of adults experience financial anxiety, and 58% feel like money controls their lives. Unsurprisingly, more than one-third of adults say financial problems have directly affected their mental health.
Over time, feeling financially squeezed or being in debt can cause difficulty sleeping, household tension, strained relationships and reduced focus at work. Left unchecked, it can spiral into depression, anxiety or avoidance behaviors that make the problems worse. Chronic financial strain has also been linked to higher cortisol levels, fatigue and an increased risk of cardiovascular disease, among other physical conditions.
The connection between personal finances and emotional well-being is clear. Knowing this, community financial institutions can and should provide responsible ways to ease financial stress in order to serve their communities better. With the right approach, they can help account holders calm financial anxiety and find peace of mind.
How Financial Institutions Can Help
When account holders are under pressure, they may lose trust in their bank or credit union if they feel judged or overlooked. Showing empathy and offering proactive support is a human service and a retention strategy. Account holders who feel understood in lean times are more likely to stay loyal and be more open to additional products and services in the future.
Community banks and credit unions already have a built-in advantage over large and online-only banks: they’re part of their members’ communities. They’re not faceless entities. They’re people who often know their account holders personally and genuinely want to help them. Viewing it through that lens, community financial institutions are natural allies who can potentially help alleviate money worries. Here’s how they can put that strength to work.
- Proactive financial education
A 2025 PYMNTS study found that 65% of U.S. adults live paycheck to paycheck. They don’t have much, if any, wiggle room in their budgets for an unexpected bill or emergency. To combat the stress this uncertainty brings, financial institutions can offer financial wellness workshops, budgeting tools, digital courses and personalized advice to help account holders manage debt, set savings goals and plan for the future.
To take this even further, consider integrating digital tools such as credit monitoring, score simulators and personal financial management dashboards within online and mobile banking. These solutions give account holders the transparency and self-awareness they need to understand how specific behaviors impact their financial health in real-time.
One recent study found that 47% of users of a financial wellness platform reported lower financial stress—underscoring how education can replace anxiety with assurance.
- Fair and responsible liquidity options
When cash flow is tight, many consumers make short-term decisions with long-term consequences, like turning to payday lenders, pawn shops or high-interest credit cards. One-third of those living paycheck to paycheck have skipped or partially paid a bill, risking late fees, loss of service or damaged credit.
Community banks and credit unions can offer a safer alternative by providing fair, transparent liquidity solutions. Services like overdraft protection and short-term, small-dollar loans provide access to much-needed funds without excessive fees or predatory terms. When backed by dynamic limits based on the account holder’s ability to repay, these programs provide breathing room, while reinforcing healthy financial behavior and building long-term trust.
- Personalized communication and engagement
Money stress is deeply personal, so support should be too. Using data-driven insights, analytics and segmentation, financial institutions can tailor communication based on real behaviors and needs. They can send alerts for spending spikes, offer encouragement when savings grow or share tips when behavioral patterns suggest financial strain, reminding account holders that someone has their back.
A 2025 FICO survey found that 88% of consumers consider experience just as important as a financial institution’s products and services. Personalized engagement can improve the customer experience and solidify the financial institution as a trusted partner.
- Normalizing conversations about money stress
Despite being a leading source of stress for so many, money remains one of the hardest topics to discuss. Only 52% of adults say they’re comfortable talking about it, and 45% feel embarrassed talking about their financial situation with others.
Community banks and credit unions can help change that narrative. By addressing money stress openly and without judgment—through blogs, newsletters, social media posts, in-person events or webinars—they can normalize the conversation and reduce the stigma. Honest, empathetic dialogue builds trust and makes it easier for people to feel comfortable reaching out for help.
Building Account Holder Trust with Empathy
Today’s consumers aren’t just looking for the lowest fees when they choose a bank or credit union. They want a partner they can trust, especially when financial stress is high.
Often, financial health is emotional health. When institutions recognize that connection and lead with empathy, they stand out as genuine allies in their account holders’ lives. By combining empathy with education, technology, valuable services and personalized support, community banks and credit unions can deliver on their commitment to their communities by helping ease the mental burden of money—and strengthen the relationships that matter most.
Check out our on-demand webinar and explore how community financial institutions can strengthen customer relationships, deliver financial education, and provide digital wellness tools that make a measurable difference.
Watch Webinar
Fred Stapleton, VP of Relationship Management
With over 25 years of experience in banking and fintech, Fred brings a deep understanding of financial services and customer relationship management. As VP of Relationship Management at CSI, he has consistently delivered results by building and guiding high-performing, nationwide teams focused on servicing and retaining customers. His passion lies in driving excellence, fostering long-term client partnerships, and navigating complex challenges.