Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
23rd August 2011
Banks must work harder to attract 'Facebook Generation'
A study by Experian finds that 18-25 year olds get most of their financial advice from friends, family and the social media. The credit reference company has named this group the 'Facebook Generation'.
Whilst most banks have a social media presence it is too often the case that it is used for selling concert tickets and as corner of the web site with bright graphics in contrast to the boring blues and reds corporate colours elsewhere. The report indicates that banks need to make social media a central part to their communications and cover core subjects within it.
Tor Bengtsson, commercial director, contradicts the prevalent belief that this group are less financially aware than past generations and he suggests that this group will still use the same sources of information when they are older (and richer). He commented
"The social media phenomenon has revolutionised young adults' attitudes towards financial services. Lenders need a deep understanding of how these customers are interacting around their brands online if they want to succeed in this area of the market," said Tor Bengtsson, commercial director at Experian UK & Ireland. It's also critical that organisations realise that social media is the norm for this age group and the habits they've formed and expectations they've come to expect will inform decisions throughout their entire lives. Social as a way of life won't just disappear when they get older and it's only likely to get stronger.
"Social media makes young adults better informed, more able to share grievances and more open to influence from peers and financial providers than ever before," he said. They want immediate information, instant decisions, faultless customer service and the ability to manage finances on the move. Providers that fail to tick all these boxes could fall behind."