Fireside Chat, Interview
Focusing on Financial Health: Holly O’Neill & Financial Health Network CEO Jennifer Tescher
- Holly O'Neill, President of Retail Banking at Bank of America, opens the discussion in Chicago, highlighting the bank's 133 financial centers and 5,000 teammates serving millions of clients annually.
- Jennifer Tescher, President and CEO of the Financial Health Network, is introduced as the pioneer who coined the term "financial health."
- Tescher's career transitioned from journalism to public policy after realizing a desire to solve, rather than just report on, issues of justice and financial inequality.
- Her initial banking experience at Shore Bank, a community development bank in Chicago, taught her the viability of balancing mission and margin.
- The Financial Health Network measures American financial health holistically, encompassing spending, saving, borrowing, and planning, rather than relying solely on credit scores.
- Financial health in the US declined for the first time in five years last year, attributed to the end of pandemic stimulus funds, increased consumer spending, and rising inflation.
- Significant disparities exist in financial health: only 15% of Black Americans are financially healthy, representing a 20-point gap compared to white Americans.
- A 16-point gender gap exists, with less than 25% of women considered financially healthy compared to nearly 40% of men.
- Over the next two decades, Tescher's focus has shifted from expanding access via technology to improving the financial lives of the majority, specifically targeting historically underserved populations.
- The network aims to engage non-financial stakeholders, such as employers and healthcare providers, recognizing that financial health impacts all aspects of a consumer's life.
- Tescher notes that the industry narrative has shifted from asking "why" financial health matters to "what" institutions should do, with banks now creating specific roles dedicated to financial health.
- Bank of America's financial health certification, developed with J.D. Power, validates the bank as the first to be certified based on both internal frameworks and national customer surveys.
- Tescher attributes the bank's success to leadership tone from the top, specifically Brian Moynihan's "responsible growth" approach, and the institutionalization of customer feedback loops.
- Tescher recently completed a 130-mile, 11-day pilgrimage on the Camino de Santiago in Spain as a "walking meditation" during a sabbatical.
- Tescher offers "Pay your full credit card balance each month" as her best financial advice and names Bryan Stevenson of the Equal Justice Initiative as a leader she admires.
- Sharon Miller, President of Small Business and Head of Specialty Banking and Lending at Bank of America, introduces the Small Business Owner's Report, marking the 11th consecutive year of publication.
- The latest report reveals that over 70% of small business owners plan to increase business growth despite ongoing concerns about inflation and the economy.
- Digital optimization among small businesses rose to 80% this year, up from 70% in the previous report, driven by pandemic-era necessity.
- 75% of small business owners report being prepared for potential economic downturns, such as a recession.
- Black-owned businesses are the fastest-growing segment, with a 17% increase according to Harvard Business Review research.
- The Bank of America Institute for Women's Entrepreneurship, a partnership with Cornell, has enrolled over 100,000 women, representing the only Ivy League course of its kind.
- Research cited indicates that women reinvest 90% of their earnings back into their communities and families, compared to a lower rate for male counterparts.
- Asian American Pacific Islander business owners identified access to capital, training, and education as their primary needs for growth.
- Bank of America holds the position of the largest lender to small businesses in the US according to FDIC data.
- Miller advises aspiring entrepreneurs, particularly Millennials and Gen Z, to prioritize customer service and client relationships as the primary driver of business growth.
- Resilience in small business is highlighted by survey data showing 22% of owners would not sell ownership of their company for $5 million, citing passion as the core motivator.