People are always vowing to remake themselves. Finally going to the gym every day. Finally writing that book. Finally taking that vacation. These are great personal resolutions, but you can make some financial services marketing ones too. For example, capturing a younger demographic.
Getting younger may be personally impossible (without a Fountain of Youth at least), but it isn’t impossible for your financial organization. In fact, it’s necessary.
The Problem
The demographic trends don’t look promising for many financial organizations right now. Credit union members average in the mid-50s. Less than 25% of community bank customers are in the 18-to-34 age range. This pattern is obviously unsustainable – it literally cannot go on forever. But while dire, these trends are not irreversible if you take the right actions.
Tell Younger Folks Who You Are
Credit unions, community banks and smaller financial organizations assume younger people know what makes them different from megabanks and neobanks. But they don’t. All they see is the same accounts, loans and services under different names…unless you market why you’re different. Younger generations are highly cause-oriented, so this should be a resonant message for your financial services marketing if you communicate it well.
Ask Younger People What They Want
Block (Cash App’s parent company) recently announced the formation of a 20-person Teen Advisory Council (TAC) that will meet regularly throughout the year to provide input on the company’s latest products and services. Sounds fancy…but it’s actually a simple idea. Just ask younger generations what they want. Put your ear to the ground. Do what they want, not what you assume they want. Can you make your own TAC?
Adjust Your Risk Profile
Many financial organizations pride themselves on giving chances to applicants typically rejected elsewhere. But this desire is increasingly inconsistent with the reality at many institutions. Many modern risk profiles exclude young demographics just starting to build credit or learning responsible financial behavior. You of course can’t be foolhardy, but you must consider a potentially lower barrier for those just starting out. Remember: losing them now may mean losing them forever.
Create Experiences Younger Demographics Crave
Younger demographics don’t want transactions. They want experiences. The Wall Street Journal notes the recent effectiveness of “Finfluencers,” social media content creators who create interesting, relevant financial videos. Rick Johanson at Arbitrum Gaming Ventures notes that “Finetainment” will be on the rise too. These are financial services that blur the lines between games and culture. You must examine your current consumer journey and marketing to gauge whether you are offering transactions or experiences. Can you become a finfluencer? How can you take boring banking to finetainment?
Don’t be Here Next Year
Whatever you do, commit to not being in the same place next year. Get a helping hand to ensure you aren’t still struggling with financial services marketing and reaching younger generations. Book a free consultation today, and let’s discuss how to tell your brand story better with a marketing assessment or marketing partnership.
