Millennials and Gen Z Choose Digital First Financial Brands Over Traditional Banks Reveals New Study by BrandCap
Marcus by Goldman Sachs Named Most Relatable Financial Services Brand by Millennials and Generation Z•Big traditional banks, such as HSBC and TD Bank, found to be least relatable to Millennials and Generation Z
NEW YORK, March 6, 2019 /PRNewswire-PRWeb/ -- Performance branding specialist, BrandCap, has unveiled its first Financial Relatability Index which identifies America's most relatable financial services brands, in today's disrupted marketplace, specifically focusing on 18-34 year olds.
Marcus, Goldman Sachs' first online lending company, is named the most relatable brand, followed by PayPal's Venmo and Chase's Finn.
BrandCap Financial Relatability Index:
1. Marcus (136)
2. Venmo (127)
3. Finn (121)
4. JP Morgan Chase (116)
5. RobinHood (112)
6. Capital One (112)
7. CreditKarma (108)
8. Zelle (103)
9. Bank of America (97)
10. Citi (91)
11. PenFed (87)
12. Money Lion (86)
13. Wells Fargo (79)
14. TD Bank (78)
15. Navy Federal Credit Union (72)
16. HSBC (60)
The index is underpinned by four key indicators of relatability, which were compiled following in-depth consumer research. These include:
- Competence: Does this brand allows me to interact with it in a way that suits me best?
- Empathy: Does this brand understand my changing needs?
- Character: Does this brand reflect me and my values?
- Confidence: Can this brand be relied upon?
Double-digit scores above the index median on 'Competence' and 'Character' were found to be the biggest drivers of relatability. The top three financial brands are all digital-savvy brands that relate to their audiences by meeting, and often exceeding, their expectations of their products and services. For instance, Marcus was built to be a bank for the digital age. Its ethos is to be the financial services platform that eliminates customer pain points and it builds competence by offering an approachable way of managing finances. It demonstrates empathy and character by educating customers about managing debt and setting achievable financial goals and it evokes confidence by closely aligning itself to its parent brand. Consumers' willingness to provide personal information goes up significantly when customers know it is backed by 140-year-old, financial powerhouse, Goldman Sachs
Interestingly, the research reveals different prioritization among the drivers of relatability for Millennials and Generation Z. Gen Z were found to prioritize 'Character' and 'Empathy' whilst Millennials prioritize 'Confidence' and 'Competence.' As a result, the most relatable financial brands differed for each group, with Marcus, Finn and Venmo being the most relatable to Generation Z, and JP Morgan Chase, Venmo and Capital One being the most relatable to Millennials. This suggests that whilst Millennials are at ease with digital banking they are less inclined to stray from traditional banking institutions, whilst Generation Z customers, a demographic known for its entrepreneurial and unconventional mindset, are more at ease with trail-blazing, financial disrupter brands.
However, common to both cohorts is the relatability, or lack thereof, of big, traditional banks. HSBC, Wells Fargo, and TD Bank are among the least relatable brands within the Index. In an era of cyber-attacks and digital fraud customers want financial service providers to make honesty, ethical practices, and transparent communication top priorities.
Comments Lindsay Beltzer, Director, BrandCap:
"As we've seen from the top performers on the Relatability Index, the winners are iterating their products and services quickly to meet user needs, creating mobile-first experiences that build loyalty, and are offering new ways of banking that puts flexibility and convenience front and center of the customer experience.
Bringing relatability to life needs to become inherently part of the brand experience. If built through a progression of steps, by instilling competence, empathy, confidence, and character, the financial leaders of tomorrow have the potential to win over young audiences and develop lifetime loyalty, throughout their prime earning, spending, and borrowing years. It's an opportunity finance brands surely can't afford to miss."
SOURCE BrandCap
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