Signs are pointing to a global recession sparked by the economic impact of the coronavirus pandemic. Lessons from the Great Recession suggest that, amidst recession, spending growth predominantly stems from Multicultural consumers.
Today’s consumers are digital-forward when approaching their personal finances, and brands need to keep up. Learn how multicultural and youth segments are driving online adoption in financial services, and what your brands can do to win their attention, consumption, and loyalty.
Fill out the form to view a clip from our webinar, Capture Financial Service Consumers with the Power of Digital.
Transitioning financial products and services online is an industry imperative. Online services have three powerful advantages over brick-and-mortar:
- Online brands can offer better services to more people at lower cost
- Online brands can better understand the specific needs and preferences of individual consumers
- Online brands can leverage the digital innovations transforming the financial services industry
Succeeding in the digital arena requires not only providing products and services geared towards these three advantages, but also communicating these advantages to consumers. To do this right, financial institutions need to understand the attitudes, preferences, and behaviors of the diverse consumer segments underpinning online adoption in the first place.
In late 2019, we spoke with our membership to understand their most pressing questions about complex digital services in the financial services space. Based on these discussions and our own institutional knowledge, in January 2020 we conducted a nationally representative survey with 2,176 respondents. We over-sampled for household incomes over $50,000/year, to analyze with precision the preferences of relatively affluent consumers. We also over-sampled for Hispanic consumers, across acculturation levels.
What we see from the market is that consumers grapple with three significant barriers when they approach financial services online: data security, institutional trust, and financial literacy. By digging deeper into how these challenges affect consumers across generational and multicultural segments, we identified five actions brands can take to help consumers overcome these challenges.
The 5 Actions to Drive Digital Service Utilization in the Financial Services Industry:
- Combat Worry by Educating Consumers on Steps They Can Take to Protect Themselves
- Win Consumer Attention by Clarifying the Ways You Help Them Fight Identity Theft
- Build Trust by Emphasizing Real-World and Virtual Interactions with Relatable Advisers
- Use Language Capabilities to Appeal to Multicultural Consumers Interested in Multi-generational Financial Planning
- Offer a Learning Ecosystem Consumers Will Want to Use
Our insights help drive some of the world’s top brands. Talk to us about the benefits of our methodologies.
Catch Up On The Latest Insights
With the coronavirus crisis disrupting most planned in-person fieldwork, our existing online qual expertise at Collage Group has allowed us to seamlessly support clients despite quarantines.
Collage Group just launched new syndicated research streams ranking ads and brands on cultural fluency.
AdRate and BrandRate are major new initiatives that provide a solution to our members’ mounting need for a comprehensive, ongoing analysis of the cultural fluency of branding and advertising.