By Amanda Griffiths, Head of Customer Communication Planning and Insight at Marketreach
A new year is often the time consumers press the reset button on their budgets and reflect on their financial behaviour. And as The Telegraph recently highlighted, no one is feeling the need to check in on financial security more than Gen Z.
Rather than spending freely, Gen Z is saving more for a “rainy day”, outpacing the overall savings rate. It’s no surprise amidst ongoing cost of living pressures and a tough job market, which have increased feelings of anxiety among young people. While it’s good to see the next generation invest in their savings, their drive towards long-term security requires a new playbook from banks and financial service providers.
At times of heightened uncertainty, trust becomes central to how young consumers choose financial services and banks. Many of these savers are at a foundational point in their financial education, opening their first ISAs, looking into pensions and investments. It’s not enough for banks to offer good interest rates in these moments, they need to become trusted advisers, confidants, and partners in finding financial security.
Trust plays an important role in meeting this need, and must underpin every aspect of consumer communication, including, critically, marketing.
Gen Z’s financial considerations
For Gen Z , saving has become a core financial habit shaped by uncertainty rather than choice. Heightened anxiety and economic pressures make them more cautious, which translates to being more selective and research driven when choosing a bank. Confidence and credibility can be a deciding factor in this.
For banks and financial service providers, this shift in behaviour raises the stakes and presents an opportunity to show up for a generation that is thinking seriously about money earlier than ever.
In a recent study of over 4,000 respondents, we asked consumers exactly what inspires trust in the brands they use and love, how trust is shaped, and what impact it has on their consideration. We found that 59 percent say trust plays an important role in persuading them to consider a product or service, with 35 percent likely to spend more money with Financial brands they trust. And for such a discerning generation, trust is hard to earn and can be easily lost.
At the consideration stage, being able to build trust is critical. The survey also showed that trust drives a nine percent likelihood to seek out information about a financial brand, and more than five percent of website visiting and referrals are driven by trust.
Why communication matters more than ever
In a sector as competitive as financial services, standing out beyond small incentives and short-term offers is pivotal. Perks such as a bank switch bonuses or cashback may grab attention initially, but long-term engagement is driven by how credible, transparent and reassuring brands feel. We found that trusted channels are critical to communications that build trust in a brand, especially pertinent for finance as a sector handling sensitive information.
Six out of ten people agreed that direct mail is a channel used by official and trusted companies, with 53 percent of consumers agreeing that mail feels more secure than digital channels, as it’s less likely to be “tampered with”. It’s a channel people give attention to and spend time with. Each moment of picking up and reading mail provides an opportunity for banks to build a real relationship with consumers, outside of digital noise and crowded online inboxes.
I’ve seen focussed mail campaigns address uncertainty first hand. When the law on workplace pensions changed, Aviva mapped the customer journey of its SME targets to educate and convert potential customers. As part of a thoughtful omnichannel campaign, the insurer used direct mail to reach small businesses responding to the law change. Although smaller enterprises were less familiar with the pension reform, the clear communication helped to reassure business owners and position Aviva as an educator and partner. It was a campaign that made the difference between a message being ignored and a relationship being built with employers not only considering Aviva, but also committing to them.
The role of channels in building credibility and trust
In a category where decisions feel momentous and information can be complex, trust and credibility matter the most, and the way banks show up can directly impact their bottom line.
For marketers, that means understanding the right messaging for your audience, but also reflecting this credibility within the right trusted media mix. A physical touchpoint stands out from crowded digital platforms and offers a human touch, allowing brands to communicate in a way that feels more considerate and personal. It’s the same logic that has kept human interaction and in-store guidance at the forefront of many banks’ brand offerings. Thoughtful communications through well trusted channels like mail, when used alongside all media, reinforce key messaging and help the brand to stay front of mind during milestone moments, from opening a student account to saving towards a first property.
As Gen Z continues to engage with financial services earlier and more deliberately, marketers have a chance to make their banks long-term partners for this next generation of savers and investors. Brands that build consumer trust through credible channels can withstand the ever changing financial landscape by offering stability and guidance. And trust me when I say, they’ll see financial gains in doing so.
