New FIS Research Shows Consumers Leaning on Social Media for Financial Advice, Giving Banks an Opportunity to Avoid a Generational Trust Cliff
FIS, a global financial technology leader, has released findings from a comprehensive U.S. consumer research study examining generational relationships with financial institutions. The study reveals a significant shift in how younger generations seek financial advice, with social media becoming the primary source for Gen Z and Millennials. This trend poses challenges for traditional banks in maintaining their authority on personal finances.
Key findings include:
- 40% of Gen Z and 36% of Millennials learn about finance from social media
- 68% of Gen Z and Millennials consider money a major emotional stressor
- 41% of Americans believe they could only invest if they won the lottery
- 55% worry they will never be able to retire
The study also highlights opportunities for banks to bridge the trust gap by offering personalized, data-driven solutions and innovative tools to support consumers in making informed financial decisions.
FIS, un leader globale nella tecnologia finanziaria, ha rilasciato i risultati di uno studio di ricerca sui consumatori statunitensi che esamina le relazioni generazionali con le istituzioni finanziarie. Lo studio rivela un cambiamento significativo nel modo in cui le generazioni più giovani cercano consigli finanziari, con i social media che diventano la fonte principale per la Gen Z e i Millennials. Questa tendenza rappresenta una sfida per le banche tradizionali nel mantenere la loro autorità sulle finanze personali.
I risultati principali includono:
- Il 40% della Gen Z e il 36% dei Millennials apprendono delle finanze dai social media
- Il 68% della Gen Z e dei Millennials considera il denaro un importante fattore di stress emotivo
- Il 41% degli americani crede di poter investire solo se vincessero alla lotteria
- Il 55% teme di non poter mai andare in pensione
Lo studio evidenzia anche opportunità per le banche di colmare il divario di fiducia offrendo soluzioni personalizzate e basate sui dati, insieme a strumenti innovativi per supportare i consumatori nelle loro decisioni finanziarie consapevoli.
FIS, un líder global en tecnología financiera, ha publicado los resultados de un estudio de investigación sobre consumidores en EE.UU. que examina las relaciones generacionales con las instituciones financieras. El estudio revela un cambio significativo en la forma en que las generaciones más jóvenes buscan asesoramiento financiero, con las redes sociales convirtiéndose en la fuente principal para la Generación Z y los Millennials. Esta tendencia representa desafíos para los bancos tradicionales en la mantención de su autoridad sobre las finanzas personales.
Los hallazgos clave incluyen:
- El 40% de la Generación Z y el 36% de los Millennials aprenden sobre finanzas a través de las redes sociales
- El 68% de la Generación Z y los Millennials consideran que el dinero es un importante factor de estrés emocional
- El 41% de los estadounidenses creen que solo podrían invertir si ganaran la lotería
- El 55% se preocupa por no poder jamás jubilarse
El estudio también destaca oportunidades para que los bancos cierren la brecha de confianza ofreciendo soluciones personalizadas, impulsadas por datos, y herramientas innovadoras para apoyar a los consumidores a tomar decisiones financieras informadas.
FIS는 미국 소비자에 대한 포괄적인 연구 결과를 발표했습니다. 이 연구는 금융기관과의 세대 간 관계를 조사한 것인데, 연구 결과 젊은 세대가 재정 자문을 구하는 방식에 중대한 변화가 있음을 보여줍니다. 소셜 미디어가 Z세대와 밀레니얼 세대를 위한 주요 자원으로 떠오르고 있습니다. 이 추세는 전통적인 은행이 개인 금융에 대한 권위를 유지하는 데 도전 과제가 됩니다.
주요 결과는 다음과 같습니다:
- Z세대의 40%와 밀레니얼 세대의 36%는 소셜 미디어를 통해 금융을 배운다
- Z세대와 밀레니얼 세대의 68%는 돈이 주요 정서적 스트레스 요인이라고 생각한다
- 41%의 미국인들은 복권에 당첨되지 않는 한 투자를 할 수 없다고 믿고 있다
- 55%는 결코 은퇴할 수 없을까 걱정하고 있다
이 연구는 또한 은행들이 신뢰의 격차를 줄일 수 있는 기회를 강조하며, 소비자들이 정보에 기반한 재정 결정을 내릴 수 있도록 개인화되고 데이터 기반의 솔루션과 혁신적인 도구를 제공함으로써 이를 지원할 수 있는 방법을 제시합니다.
FIS, un leader mondial dans le domaine de la technologie financière, a publié les résultats d'une étude de recherche complète sur les consommateurs aux États-Unis, examinant les relations générationnelles avec les institutions financières. L'étude révèle un changement significatif dans la manière dont les jeunes générations recherchent des conseils financiers, les médias sociaux devenant la principale source pour la génération Z et les Millennials. Cette tendance pose des défis aux banques traditionnelles pour maintenir leur autorité sur les finances personnelles.
Les résultats clés incluent :
- 40 % de la génération Z et 36 % des Millennials apprennent la finance par les médias sociaux
- 68 % de la génération Z et des Millennials considèrent l'argent comme un important facteur de stress émotionnel
- 41 % des Américains pensent qu'ils ne pourraient investir que s'ils gagnaient à la loterie
- 55 % craignent de ne jamais pouvoir prendre leur retraite
L'étude met également en évidence des opportunités pour les banques de combler le fossé de confiance en offrant des solutions personnalisées, basées sur des données, et des outils innovants pour aider les consommateurs à prendre des décisions financières informées.
FIS, ein globaler Marktführer im Bereich Finanztechnologie, hat Ergebnisse einer umfassenden Verbraucherforschungsstudie in den USA veröffentlicht, die die generationalen Beziehungen zu Finanzinstitutionen untersucht. Die Studie zeigt einen signifikanten Wandel in der Art und Weise, wie jüngere Generationen finanzielle Beratung suchen, wobei Soziale Medien zur Hauptquelle für die Generation Z und die Millennials werden. Dieser Trend stellt eine Herausforderung für traditionelle Banken dar, ihre Autorität in Bezug auf persönliche Finanzen aufrechtzuerhalten.
Wichtige Ergebnisse sind:
- 40% der Generation Z und 36% der Millennials lernen über soziale Medien etwas über Finanzen
- 68% der Generation Z und der Millennials betrachten Geld als wesentlichen emotionalen Stressfaktor
- 41% der Amerikaner glauben, nur dann investieren zu können, wenn sie im Lotto gewinnen
- 55% machen sich Sorgen, dass sie niemals in den Ruhestand gehen können
Die Studie hebt auch Chancen für Banken hervor, die Vertrauenslücke zu schließen, indem sie personalisierte, datengestützte Lösungen und innovative Werkzeuge anbieten, um Verbraucher bei informierten finanziellen Entscheidungen zu unterstützen.
- FIS conducted a comprehensive U.S. consumer research study on generational relationships with financial institutions
- Over 80% of Americans surveyed remain loyal to their long-time financial institutions
- Gen Z consumers have opened more financial accounts in the past year than any other generation surveyed
- Social media has become the primary source of financial advice for younger generations, challenging traditional banks' authority
- 68% of surveyed Gen Z and Millennials strongly agree that money is a major emotional stressor
- 41% of surveyed Americans believe they could only invest money if they experienced a financial windfall like winning the lottery
- 55% of respondents are worried they will never be able to retire
- Younger generations are primarily keeping their money in checking accounts and digital wallets, potentially missing growth opportunities
- Many in younger generations are keeping money in accounts that are not FDIC insured, posing risks to their financial security
- Millennials switched banks five times more than Boomers in the past year, indicating potential customer retention issues for banks
Insights
This research reveals a significant shift in how younger generations approach financial advice, with social media becoming a primary source. This trend poses both challenges and opportunities for traditional banks. The key findings include:
- Trust shift: 40% of Gen Z and 36% of Millennials are learning about finance from social media, compared to less than 25% from financial institutions.
- Financial anxiety: 68% of Gen Z and Millennials strongly agree that money is a major emotional stressor.
- Account behavior: Younger generations are primarily keeping funds in checking accounts and digital wallets, potentially missing growth opportunities.
- Bank loyalty: Over 80% of Americans remain loyal to long-time financial institutions, but half would switch for better offers.
For FIS, this presents an opportunity to develop innovative digital solutions that cater to younger consumers' preferences while leveraging their existing trust in traditional banking. By focusing on personalized, data-driven financial advice and user-friendly digital tools, FIS could position itself as a bridge between traditional banking and the digital-first approach favored by younger generations.
The impact on FIS's business could be substantial if they can successfully adapt to these changing consumer behaviors. Potential areas for growth include developing AI-driven financial advice platforms, enhancing mobile banking experiences and creating educational content that competes with social media influencers. However, failure to adapt could result in losing market share to more agile fintech competitors.
This research highlights a critical shift in consumer behavior that could significantly impact the financial services industry. Key points to consider:
- Generational divide: There's a clear distinction between how younger and older generations approach financial advice and management.
- Social media influence: The growing reliance on social media for financial advice among Gen Z and Millennials presents both risks and opportunities for financial institutions.
- Financial anxiety: High levels of financial stress across generations, particularly among younger consumers, indicate a need for better financial education and support.
- Account diversification: Younger generations' tendency to keep funds in checking accounts and digital wallets suggests a potential market for investment education and products.
- Customer retention: While loyalty to financial institutions remains high, there's a significant portion of consumers open to switching for better offers.
For FIS, this data suggests a need to focus on developing digital-first, educational financial products that can compete with the immediacy and engagement of social media. There's also an opportunity to create tools that help consumers make more informed financial decisions and alleviate financial anxiety. By addressing these needs, FIS could potentially capture a larger share of the younger consumer market and strengthen its position in the evolving financial services landscape.
Key Facts
- New survey reveals significant shift in relationship between younger generations and traditional financial institutions as trust in financial advice from social media grows.
- According to the survey, social media has become the primary source of financial advice for younger generations, which can promote unrealistic comparisons and financial insecurity.
Hashim Toussaint, GM of Digital and Open Banking at FIS, commented on the findings, stating, "This research highlights a pivotal moment for the financial services industry. As younger generations increasingly turn to digital platforms for financial advice, traditional banks must evolve to meet their changing expectations. By offering personalized, data-driven solutions, we can bridge the trust gap and support consumers in making informed financial decisions, bringing greater harmony to their financial lives."
Social media takes over as the main driver of financial advice for younger generations
The research shows that social media has become the primary source of financial advice for younger generations. For instance,
Yet, dependence on social media has its drawbacks. Financial advice on these platforms tends to be fragmented and can result in unrealistic comparisons and disjointed financial decisions, which can heighten financial anxiety among consumers. Just over half of Americans surveyed feel they are not making or saving enough money compared to others they see on social media, with two-thirds of Gen Z feeling this way.
Hashim Toussaint of FIS notes, "As reliance on social media for financial guidance grows, a profound challenge for banks emerges as they compete with the immediate gratification offered by influencers. Banks must lean into their role as trusted financial advisors, unlocking the financial wisdom for customers to put their money to work, so they can take a step back from the daily doomscrolling and have greater confidence in their ability to achieve their future goals.”
Rising financial anxiety across generations due to fragmented advice and economic uncertainty
Across all generations, financial anxiety is on the rise, exacerbated by the constant access to fragmented financial advice on social media. The study found that
A particularly striking finding from the study is that
Two-thirds of Gen Z consumers surveyed do not feel they make enough money compared to their peers, and
Consumers are vaulting their funds at rest instead of putting their money to work
The study reveals that younger generations are primarily keeping their money in checking accounts and digital wallets. Specifically,
The trend of keeping most funds in checking accounts suggests that younger generations are not maximizing growth and optimization opportunities. However, Gen Z consumers have reported opening more financial accounts in the past year than any other generation surveyed, which suggests that while they are putting their money at work by investing, they are actively engaging with their finances.
Banks can bridge generational trust gap by keeping pace with new entrants and delivering exceptional customer experiences
Amid these challenges lies a significant opportunity for banks to drive exceptional customer experiences and earn the trust of younger, tech-savvy consumers. Over
To attract younger customers, banks should create innovative tools and services that empower consumers to stay organized, inform them about their choices, and support them in achieving their financial goals. Offering tailored and easily accessible financial solutions will help attract and retain the next generation of customers.
Methodology
FIS’ survey was conducted by Savanta in July 2024. The research explores the attitudes and behaviors of US Consumers across financial wisdom, data privacy and perception and the impact of social media on how different generations view their financial wellbeing, as well as the opportunity for banks to evolve in these areas.
The US data is based on a representative sample of 2,992 adult consumers across the US, spanning Generation Z (18-27), Millennials (28-43), Generation X (44-59) and Baby Boomers (60+).
FIS is a financial technology company providing solutions to financial institutions, businesses, and developers. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in
View source version on businesswire.com: https://www.businesswire.com/news/home/20241016941016/en/
Kim Snider, 904.438.6278
Senior Vice President
FIS Global Marketing and Communications
kim.snider@fisglobal.com
Source: Fidelity National Information Services
FAQ
What percentage of Gen Z and Millennials are learning about finance from social media according to the FIS study?
How many Americans surveyed by FIS believe they could only invest money if they won the lottery?
What percentage of Gen Z and Millennials consider money a major emotional stressor according to the FIS research?
How often do Gen Z and Millennials check their personal checking/savings accounts compared to Boomers, according to the FIS study?
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