Financial brands that champion customer's wellbeing in the digital experience through empathy and emotional intelligence will fare best in the new Covid-19 pandemic era, as new research uncovers how young people are worried about looking at their finances.
Digital agency MullenLowe Profero is today launching a new report into the impact of COVID-19 on 18-25 year olds. MullenLowe Profero partnered with Censuswide to survey 1,004 18-25-year-olds and 504 small businesses.
Key findings in the research include:
– 40% of 18-25-year-olds are afraid to look at their bank account
– 40% of 18-25-year-olds state that thinking about their money has a negative impact on their wellbeing
– more than half of respondents think a bank must help them to get better educated on money management and help them to manage finances
Concern around financial shocks is harming individual’s wellbeing
The survey finds the ability to absorb financial shocks being the critical worry affecting wellbeing and 40% of 18-25-year-olds are sometimes afraid to look at their bank account.
They are seeking financial education to relieve worries
With over two-thirds of respondents demanding financial education in order to find peace of mind and 40% of 18-25-year-olds state that thinking about their money has a negative impact on their wellbeing the report highlights the audience are open to more active support from banks. 60% of the audience feel banks should help them have the capacity to absorb a financial shock.
When our bank is in our pocket reminding us of our anxieties, is there now a duty of care to support our wellbeing?
The survey finds that the digital experience is now the number one reason for choosing a bank for 18-25 year olds.
With this shift in digital preference, people are expecting banks to play a bigger role in wellbeing. 58% of those worried about their money want banks to help them take control.
More than half of 18-25 year olds agree that a bank’s role is now to:
• provide education on money management
• help them keep on top of financial goals
• help them save enough money to cope with the ups and downs of life
People are feeling closer to local communities, but there is a gap in how brands should engage communities in a digital world
Half of 18-25 year olds agree that in the last few months the importance of their local community to them has increased. 40% agree they’ve engaged more with their local community in recent months. There’s a tension between how to engage a community as 60% agree they prefer a bank with better digital tools over a bank that offers more local branches. However, 60% feel banks need a branch presence to support local communities.
The importance of Global Wellbeing rises
Over half of 18-25 year olds agree that the events of the last few months have made them seek out brands that do better for the world. The research findings show that what they want most is to be recognised for their positive behaviours. 56% of the audience highlighted that they would find rewards and benefits for purchasing ethically and sustainably most useful.
Banks digital experience today lack empathy
In this time of reset, the survey found a third of customers and small businesses are considering changing banks in the next year as a result of the impact of the pandemic. The report concludes that brands that will win will champion financial wellbeing in the digital experience through empathy and emotional intelligence.
Howard Pull, Head of Digital Transformation Strategy at MullenLowe Profero, said: “Our findings are a wake up call for digital innovation in banking relationships. With digital experience being the number one choice for selecting a bank, there’s a huge opportunity for banks to support individual wellbeing at scale by understanding and responding to our goals and anxieties to build better money habits.”Methodology
The research was conducted by Censuswide, with 1,004 18-25-year-old current account holders and 504 small businesses with business bank accounts and annual revenues up to £2m between 23.06.2020 and 29.06.2020. Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles.
