NEW YORK–Two credit unions have made a Top 15 list of the “most relatable financial services brands” among younger consumers ages 18-34.
The same analysis also identified the least relatable big bank brands. The findings were part of an analysis that found differences in priorities between members of Generation X and Millennials.
The Financial Relatability Index was released by BrandCap. Making the list were Pentagon FCU at #11 and Navy FCU at #15. Rated highest was Marcus, the retail online bank that has been introduced by Goldman Sachs.
BrandCap Financial Relatability Index:
1. Marcus (136)
2. Venmo (127)
3. Finn (121)
4. JP Morgan Chase (116)
5. RobinHood (112)
6. Capital One (112)
7. CreditKarma (108)
8. Zelle (103)
9. Bank of America (97)
10. Citi (91)
11. PenFed (87)
12. Money Lion (86)
13. Wells Fargo (79)
14. TD Bank (78)
15. Navy Federal Credit Union (72)
16. HSBC (60)
According to BrandCap, the index is underpinned by four key indicators of relatability, which were compiled following in-depth consumer research. These include:
- Competence: Does this brand allow me to interact with it in a way that suits me best?
- Empathy: Does this brand understand my changing needs?
- Character: Does this brand reflect me and my values?
- Confidence: Can this brand be relied upon?
Competence & Character
BrandCap said double-digit scores above the index median on “Competence” and “Character” were found to be the biggest drivers of relatability.
“The top three financial brands are all digital-savvy brands that relate to their audiences by meeting, and often exceeding, their expectations of their products and services,” said BrandCap. “For instance, Marcus was built to be a bank for the digital age. Its ethos is to be the financial services platform that eliminates customer pain points and it builds competence by offering an approachable way of managing finances. It demonstrates empathy and character by educating customers about managing debt and setting achievable financial goals and it evokes confidence by closely aligning itself to its parent brand. Consumers' willingness to provide personal information goes up significantly when customers know it is backed by 140-year-old, financial powerhouse, Goldman Sachs.”
Interestingly, said BrandCap, the research reveals different prioritization among the drivers of relatability for Millennials and Generation Z. Gen Z were found to prioritize “Character” and “Empathy” while Millennials prioritize “Confidence” and “Competence.”
Millennials Vs. Gen Z
“As a result, the most relatable financial brands differed for each group, with Marcus, Finn and Venmo being the most relatable to Generation Z, and JP Morgan Chase, Venmo and Capital One being the most relatable to Millennials,” said BrandCap in its analysis. “This suggests that while Millennials are at ease with digital banking, they are less inclined to stray from traditional banking institutions, while Generation Z customers, a demographic known for its entrepreneurial and unconventional mindset, are more at ease with trail-blazing, financial disrupter brands.
“However, common to both cohorts is the relatability, or lack thereof, of big, traditional banks. HSBC, Wells Fargo, and TD Bank are among the least relatable brands within the Index,” BrandCap continued. “In an era of cyber-attacks and digital fraud customers want financial service providers to make honesty, ethical practices, and transparent communication top priorities.”
"As we've seen from the top performers on the Relatability Index, the winners are iterating their products and services quickly to meet user needs, creating mobile-first experiences that build loyalty, and are offering new ways of banking that puts flexibility and convenience front and center of the customer experience,” said Lindsay Beltzer, director with BrandCap. “Bringing relatability to life needs to become inherently part of the brand experience. If built through a progression of steps, by instilling competence, empathy, confidence, and character, the financial leaders of tomorrow have the potential to win over young audiences and develop lifetime loyalty, throughout their prime earning, spending, and borrowing years. It's an opportunity finance brands surely can't afford to miss."