Consumers are looking to better their financial health
- Covid is causing people to reevaluate their financial health. Adulthood is causing millennials to reevaluate their financial choices.
- Consumers’ interest in improving their finances is growing, and that could present new marketing opportunities for financial service providers.
Interest in improving financial health is increasing all across different affluency groups according to a study by CleverTap, a mobile marketing platform for fintech apps.
Around 78% of high net worth and around 84% of mass affluent people have some sort of interest in improving their financial health.
Most interest is coming from the mass market, with 88% of those surveyed showing some form of interest in improving financial health, and almost 25% of those surveyed saying they’re extremely interested.
There’s still around 12% of the mass market that is either unsure about or not too interested in improving financial health. But according to Dabbah that may have to do more with lack of awareness, rather than lack of interest. Then there’s general distrust in financial institutions, which also may be playing a role.
"Unfortunately, not everyone puts a premium on financial health,” said Dabbah.
For the most par though, Covid has changed the way people think about their finances. It’s led to people being more aware of their financial health and eager to improve it. Then there’s the millennial factor -- this generation is now at a stage where they’re starting to out-adult themselves -- looking for smart investments and property choices.
“All of these factors combine to give consumers a healthy appetite for financial information, resources, and advisers,” said Dave Dabbah, CMO at CleverTap.
The study compares the future of financial products and tools to the exercise apps consumers use today. Apps like MyFitnessPal and 10K Runner appeal to the user by offering easy ways to instill healthier habits and track progress. The goal of a financial app should be similar to this. The overwhelming appeal should be to improve financial wellbeing. That’s what the customer wants.
“This dynamic turns up pressure on finance companies to adapt marketing and messaging to customer needs and pivot to being a lifeline for their customers in challenging times,” said Dabbah. “But it’s not just good will, it’s smart marketing.”