Survey Finds Gen Z Consumers Seek Financial Guidance from TikTok and YouTube
August 2, 2022
GoWest Solutions partner, Vericast, conducted a survey of 1,000 adults in the U.S. and found that people are increasingly turning to alternate sources for financial information and advice in surprising ways.
Nearly half of respondents said 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.
“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.”
In addition to financial guidance, the survey reveals other opportunities for credit unions to evolve with members’ expectations to acquire and retain customers amid market volatility.
According to the survey, consumers expect financial institutions to accommodate them during widespread financial hardships, like the current unprecedented inflation. 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.
Additional findings from the survey include:
- There is a correlation between mental well-being and banking.
- Seventy-five percent of consumers said the amount of money in their bank account impacts their mental health.
- For this reason, 48% of consumers are prioritizing building their savings accounts in 2022.
- Mobile banking, interest rates, and sign-up incentives factor into choosing a financial institution.
- Sixty-one percent of consumers surveyed selected mobile banking capabilities as one of the top factors influencing their choice to bank with a financial institution.
- When asked what would persuade them to switch financial institutions, two-thirds noted better interest rates as well as incentives to open an account, such as a cash reward for signing up, while 68% said fewer fees would incentivize switching.
- Financial priorities for 2022 show opportunity.
- Amid market volatility, building up savings (48%), paying off debt (47%), and investing directly in stocks (21%) are top financial priorities this year.
- Only 12% plan to open a new checking account this year and only 19% anticipate opening a credit card; for over half of consumers, it has been five years or more since they last opened a bank account.
- There are opportunities for financial institutions to generate business —nearly half (42%) of consumers are planning to buy a car in 2022 and 34% are planning to remodel their homes.
Want to share how your credit union is evolving with member expectations? Submit your story here.
For more information about Vericast, visit its partner page or contact the GoWest Solutions team to get connected.
Posted in Across the Region, GoWest Solutions, Top Headlines.