All facets of life are feeling the effects of COVID-19, and the personal finances of Americans is no exception. Consumer sentiment is changing daily—as is the financial landscape. Given the volatile nature of the past year, it’s no surprise that Americans are being weighed down by financial anxiety. In fact, according to Resonate’s research, people have consistently been more concerned with the economic-related effects of COVID-19 than the health-related ones.
Particularly in troubled times like these, it’s critical for banks to have a deep understanding of their account holders and prospects. Financial institutions might know the basic demographics of their customer base. But do they know how they feel about the pandemic in relation to their finances? What do they want from their bank during turbulent times?
Leveraging Resonate’s comprehensive study on consumer sentiment during COVID-19, we recently analyzed the underlying characteristics of consumers who say they’re likely to apply for a loan in the near future. Within this analysis, we uncovered crucial insights into how banks and lenders can connect with such customers and prospects during this critical time.
This group of consumers noted in Resonate’s COVID-19 National Consumer Study that their likelihood of taking out a personal loan has increased since the COVID-19 pandemic began. This segment is mostly made up of married men between ages 25-34 with no children, making $25,000–50,000 a year. They’re 14 percent more likely than the average American to have a part-time job, and 40 percent of them have completed some college.
When it comes to their personal values, these personal loan seekers over-index for the freedom to determine their own actions, avoiding upsetting or harming people, and obeying laws and fulfilling obligations. Since this is a group that values their independence and fulfilling their obligations, it’s likely hard for them to come to terms with the fact that they need financial assistance. Connecting with this group will require some compassion and empathy in your messaging toward them.
This group is more likely to do their primary banking with Navy Federal Credit Union, Fifth Third and USAA. When it comes to their views about their current banking situation, they’re 16 percent less likely to feel that their bank communicates often, 16 percent more likely to want their bank to know who they are and are 19 percent less likely to use an online-only bank. The top three factors they consider when it comes to where they do their banking are short lines, loan availability and interest rates on loans. This group values personal interaction and customer service, so it’s critical that banks looking to reach this group make personal connections with account holders a top priority.
That said, this group is also 30 percent more likely than the average American consumer to primarily interact with their bank via its mobile app, so it’s just as important to ensure your bank’s app is providing them the services they want through their desired touchpoint. They’re more likely than the average consumer to use digital money exchanges such as Google Pay, their bank’s peer-to-peer service and PayPal.
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When it comes to their overall sentiment on the financial market, 80 percent of this group is persuadable on the idea that a financial crisis may happen soon, and 73 percent are persuadable of the possibility of a stock market drop. This offers a good opportunity for banks and lenders to reassure this group that they are trustworthy, reputable, communicative and will give them financial advice to help them through this turbulent time.
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In general, this group values the ease and accessibility of digital banking features but also craves the dedicated attention they’d get in person. Communication is key with this group, and since an in-person customer experience isn’t as available right now, a personable and accessible tone and approach of your messaging for this group is more important than ever.
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The financial landscape is constantly shifting, and a lack of certainty can stoke anxiety and fear among consumers. This is why it’s more critical than ever for banks and lenders to keep a pulse on these changes by having a direct connection between insights and action to nimbly shift messaging, offers, content and engagement strategy as needed. Stale insights and static research will not give your company a competitive edge, especially during such a turbulent time.
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