As the world becomes increasingly digital and interconnected, financial institutions face the challenge of engaging with an emerging generation of customers: Gen Z. This generation is a technologically savvy and socially conscious cohort that demands authenticity, transparency, and innovation from brands. Building brand awareness among Gen Z, particularly those still in high school who are starting to have purchasing power, is essential for financial institutions to secure their future growth and relevance in a competitive market. To understand the importance of brand awareness, you must first understand what drives Gen Z.
Socially Conscious and Values-Driven
Gen Z is known for its strong sense of social responsibility and commitment to values such as sustainability, diversity, and inclusion. They are more likely to support brands that align with their principles and take a stand on important social issues. Financial institutions must demonstrate their commitment to these values through corporate social responsibility initiatives, ethical practices, and transparent communication.
Financial Literacy and Independence
Compared to previous generations, Gen Z is highly focused on financial literacy and independence. They are eager to learn about managing their finances, investing, and saving for the future – but they might be getting information from incorrect or untrustworthy sources. Financial institutions have an opportunity to build trust and loyalty by providing research-backed educational resources, tools, and services that empower Gen Z to make informed financial decisions. By attaching its brand to these solutions, financial institutions are communicating that they vouch for the validity of financial literacy solutions in the classroom and the long-term impact they can have on a student’s future.
The Shift in Trust Dynamics
Unlike previous generations, Gen Z tends to be skeptical of traditional advertising and corporate messaging. They value authenticity, transparency, and social responsibility. Financial institutions that can demonstrate these qualities are more likely to earn their trust. This is where brand awareness plays a pivotal role. By consistently communicating brand values and engaging with Gen Z on platforms they frequent, or are guided towards, financial institutions can build a credible and trustworthy image.
Future Proofing the Institution
By focusing on brand awareness now, financial institutions can future proof themselves against market shifts and competition. Building a solid foundation of brand loyalty with Gen Z ensures a steady stream of customers who are likely to stay with the institution as they grow older, and their financial needs become more complex. It starts with subtle brand touchpoints, and in the long term, can lead to gains that benefit both the customer and the institution and result in a stronger relationship.
The Importance of Multiple Touchpoints
While logo placement may not seem to initially carry significant weight, repetition throughout an education experience is essential to cementing an image for a young person and the likelihood that they will think of one financial institution over another. Studies show that a customer needs to see a brand at least seven times before they commit to a purchasing decision (Forbes, 2023). Connecting to young people in a trusted setting like a classroom, from an impressionable age, is crucial for brand recognition. This can then be amplified by additional exposures through other marketing channels, including organic social media, billboards, and digital ads.
Brand Awareness Leads to Brand Loyalty
Building brand awareness is the first step in helping a young person identify a financial institution as a potential future partner and trustworthy institution. The mental image that a customer holds about a bank is one of the strongest motivators in the decision-making process for whether to work with one institution over another (International Journal of Professional Business Review, 2023). By attaching one’s brand to education, a financial institution is demonstrating their values and their willingness to give back to the community. Given that Gen Z in particular puts great importance into values-driven brands, this kind of impact and initial interaction can subconsciously stick with a young person into adulthood.
Conclusion
Building brand awareness with Gen Z is crucial for the long-term success of financial institutions. By understanding the unique characteristics and values of this generation, financial institutions can develop strategies that resonate with Gen Z and foster loyalty. Financial institutions trust EVERFI and the relationships it’s built with school districts across the country to know that sponsoring digital education is an impactful way to connect with young people. Learn how you can attach your brand to critical financial education and build the foundation for future customer relationships at everfi.com/sponsorship.