Consumer Finance Is Radically Changing, and Here’s How Your Brand Can Embrace It

• • • • • •

Consumers today are increasingly financially literate. They’re investing in crypto and going cashless. Is your business equipped to deal with these changing behaviors?

As consumers take a greater interest in financial literacy and learn how to make their money work for them, brands have a huge opportunity to conduct consumer research and position themselves as trusted partners in the consumers’ journey toward improved personal finances. 

Here are three ways to do that:

Educate Customers

Though the mainstreaming of personal finance engagement has generated intrigue in the category — as well as some boosted consumer savviness — the vast majority of people still have a lot to learn.

According to a real-time Suzy survey of 1,000 Americans conducted in April 2021, only 14% of respondents said they have experience with investments. Only 10% said they’ve engaged with mortgages and just 7% have interacted with 401Ks or IRAs. 

“These are all opportunities for companies in the space,” said Matt Britton, founder and CEO of Suzy, during a recent webinar, Industry Superpowers: Shifting Behaviors in Personal Finance. 

“One thing we saw during the pandemic was consumers actually said they trusted brands more than they did the government for information about COVID-19,” he added. “It just goes to show the opportunity, and in some ways the responsibility, that brands have to be true leaders.”

They should not “just focus on their bottom line,” Britton continued, but perhaps instead “think about the consumer on a more long-term basis, and know that that will pay back eventually.”

The best way to do that is through education. One company that can attest to this approach is Public.com, whose stock market-focused platform operates as something of a virtual community, informing prospective investors about, not only trades, but all things personal finance.

“It’s not competitive, it’s not about flexing,” said Katie Perry, VP of Marketing for Public.com, during the webinar. “It’s broader conversations, not just about investing, but investing in the context of budgeting, saving, paying off loans, all those topics around personal finance, because investing is really just a piece of that.”

On a more macro level, brands in this space can pay specific attention to educating young people and women. More than a quarter (27%) of Suzy survey respondents aged between 18 and 44 said they found managing their personal finances “very difficult.” (Just 10% of people older than that conveyed the same sentiment.) The same study found that females were 13% less likely to feel confident in making investments.

“Culturally, for women, we haven’t always felt as comfortable talking about money with one another,” said Raeling Kirk, Head of Marketing Research and Consumer Insights at Affirm, a leading fintech company that helps consumers finance their purchases. “Part of that is growing up in a society where we are still coming off of traditional roles for men and women and we’re seeing that shift now.”

Kirk believes it’s going to take some time for change like this to be normalized. But, again, the interest is there and companies in this space can capitalize on it while helping to dismantle archaic social constructs.

Embrace Cryptocurrency Transactions

Nearly one-third (31%) of respondents said they have friends who’ve bought, traded, or invested in cryptocurrency. If at any point it’s been safe to say that “crypto is here to stay,” it’s right now.

Brands should embrace this trend; however, they need to educate their customers in this area as well. Only 38% of respondents to the Suzy survey could identify the correct definition of blockchain.

Public.com is doing its part. During the webinar, Perry announced that the platform will be launching a crypto-centric corner of its community in the coming months. 

Support Cashlessness in General

“We are entering a cashless society,” said Britton, after observing that 30% of Suzy survey respondents aged 18-24 said they make purchases in cash but a few times per year. For individuals aged 35-44, the figure was just 12%.

Affirm, too, is expanding operations with this trend in mind. The platform has partnered with companies like Peloton to help consumers finance large, cashless purchases, but is venturing into brick-and-mortar locations as well.

“As consumers go back to stores more, there is a huge opportunity for us to be offering it in stores,” said Kirk.

For more information on how your brand can respond to shifting behaviors in personal finance, watch the entire webinar. Visit Suzy.com to learn how to use Suzy to gather customer insights and understand your target market.