Financial institutions must tune into consumer expectations and meet them where they are to retain and attract loyal customers
Vericast’s latest research revealed how consumers’ relationships with financial institutions are changing, and in some surprising ways.
Nearly half of respondents say they seek financial advice from friends or family, while less than a third are seeking it from a bank, credit union or financial advisor. Thirty-four percent of Gen Z consumers obtain financial advice from TikTok and 33% get it from YouTube, while only 24% of this age group seek advice from financial advisors.
To uncover insights on the current state of financial perceptions and priorities, Vericast, a leading marketing solutions company, conducted the survey of 1,000 adults in the U.S. and found that people are increasingly turning to alternate sources for financial information and advice.
“It is clear that financial institutions have a critical need to innovate quickly and reimagine their approach to retain customers,” said Stephenie Williams, Vice President, Financial Institution Marketing Product and Strategy at Vericast. “Banks and credit unions need to meet customers where they are, not only positioning themselves as a go-to, trusted resource providing education through traditional strategies, but also using new channels and platforms to reach younger generations.”
Furthermore, there is opportunity to deliver on evolving expectations to help banks and credit unions acquire and retain customers amid market volatility. According to the survey, consumers expect financial institutions to accommodate them during widespread financial hardships, like the unprecedented inflation we are experiencing today. Seventy-nine percent expect flexibility on rates and fees, such as waiving overdraft or late fees, while 66% say they expect it to be easier to obtain new lines of credit. An additional 69% said notifications about lines of credit available to them and promotions on special rate offers, such as low interest balance transfers, are also expected during times of financial instability.
Vericast is reimagining marketing solutions one business-to-human connection at a time. By influencing how over 120 million households eat, shop, buy, save and borrow, Vericast fuels commerce, drives economic growth and directly accelerates revenue potential for thousands of brands and businesses. While its award-winning portfolio of products, technology and solutions are part of the Vericast story, its people are the true differentiators; trailblazers in data intelligence, marketing services, transaction solutions, campaign management and media delivery.