“Buoyed by a growing economy and stock market gains, more Americans are feeling confident about their ability to afford a comfortable retirement, according to a long-running national survey released this week. Still, there are big gaps in confidence between workers who have a retirement plan, such as a 401(k), and those who don’t, according to Consumer Reports.”
Tag: financial services
According to the 2018 Allianz Tuition Insurance College Confidence Index, roughly 40% of families find the Free Application for Federal Student Aid (FAFSA) challenging to complete; a troubling statistic considering the growing number of families saving nothing for college. The index reveals a growing “college savings gap,” as even parents who have saved have only about a third of what they think a four-year degree will cost. Both groups expect to tap outside sources (including those accessible after filing the FAFSA) to cover 40% of the balance, a significant increase from 2017.
Some marketers may consider out-of-home advertising to be a traditional media format. But, the industry’s rapidly changing. The availability of both traditional and digital options is one reason revenue keeps rising in OOH.
Some industries have been faster to convert their marketing efforts to digital than others. One of the leading sectors in this realm has been financial services businesses. The US Financial Services Industry 2013: Digital Ad Spending Forecast and Key Trends report from eMarketer details which businesses are spending in specific digital formats this year and projects activity for the future.
Nearly one in three adults in the U.S. today are defined as Millennials, (consumers aged 18-35). While Millennials are known for their willingness to adopt new technologies, they still value brick-and-mortar financial institutions; the latest Mintel research finds that 31% of 18-34-year-olds who switched banks in the past 12 months did so for more convenient branch locations, compared with the 27% who changed for better online services and the 28% who did so for more access to ATMs.
According to a new report by Cogent Research, less than half (42%) of advised affluent Gen X investors indicate they are satisfied with their primary financial advisor, a figure that is significantly lower than that of any other generation. In addition, roughly one-half (51%) indicate they are the on the fence or likely to switch primary financial advisors within the following 12 months, citing dissatisfaction with the advisor’s communication, investment performance, and ability to navigate and react to changing market conditions. “It’s time for advisors to capitalize on this growing, wealthy subset of the affluent community,” said David Feltman, Managing Director at Cogent Research, adding that “tailoring the approach will be key, with a focus on the products Gen X investors favor, the risk tolerance they are comfortable with, and the platforms they gravitate towards.”
With the economy on the mend, many Americans are looking at the future with more optimism than they did prior to the recession. According to a new report by Mintel, more than eight in 10 high net worth households (defined as households with at least $500K in investable assets excluding real estate) say they are optimistic about their own financial situation over the next five years. Almost as many (76%) say they are optimistic for a shorter 12 month term, but a significant number remain pessimistic about 2011 (42%). Women respondents are much more pessimistic than men, with more than half of women (51%) saying they are pessimistic vs. 36% of males in high net worth households. Susan Menke, vice president and behavioral economist at Mintel Comperemedia, suggests that advisors focus on high net worth women, saying “the time is right to focus on adjustments to retirement portfolios for high net worth individuals, and women across all age groups would be an opportune place to start.”
According to new research from Mintel, 45-54-year-olds (younger Baby Boomers and older Gen X respondents) will definitely be taking longer to recover from the economic climate of the past few years. For instance, 47% of that group (vs. 33% overall) say they “have only been spending money on necessities” for at least a year. This group is also greatly concerned about their retirement, with 39% saying they worry more about retirement now than they ever have. As a result, a full 44% of those aged 18-24 and 34% of those in the 35-44 age range say that they intend to permanently increase the amount of money they save (vs. 28% overall). According to Susan Menke, vice president and behavioral economist at Mintel, “Everyone is more concerned about having adequate funds to retire after this recession. Unlike the Baby Boomers, however, younger age groups are able to do something about it, which offers a potential opportunity for financial services firms.”
Fifty-three percent of consumers interested in a payment service from their mobile phone would consider changing banks if another bank offered the service, according to a survey conducted by an independent research firm for Obopay. Nearly three-fourths (70%) of those responding indicated that if the service allowed them to get paid, send or receive money by mobile phone, it would be an incentive to remain at their banks. The survey also revealed an important requirement for consumers, as the vast majority of respondents (71%) indicated that if transactions were “instant” – defined by most as “within seconds” – they would be more likely to use a payment service on a mobile phone. According to Obopay Senior Vice President Michael Diamond, offering mobile phone payment services “would prove a competitive edge for banks – a way of both keeping existing customers and attracting new ones.”
Read the 10-K report published by any number of major CPG manufacturers in the U.S. and you’ll likely see Walmart listed as a significant customer, often accounting for 10% of annual revenue. The retail giant operates over 4,000 retail sites in this country and looms large in the shopping plans of consumers at all demographic levels. The company has changed the very nature of retailing CPG and groceries. In the past two years, the company has started branching into a new market: financial services.
Conservative Spending/Saving to Hold in 2010, Represents Opportunity for Banks & Financial Services Companies
We’re planning to keep our purses snapped shut and our wallets firmly lodged in our back pockets. Mintel Comperemedia predicts that in 2010, consumers will continue saving money at an elevated rate. “Consumers’ newfound financial conservatism presents many opportunities for financial services companies. As people look to save money and reduce debt in 2010, companies can benefit by gathering assets and building relationships with customers. Banks could also position themselves as advisors poised to help people build wealth and security in the new economy,” says Susan Menke, behavioral economist for Mintel Comperemedia.