As $30 trillion of wealth passes down to millennials over the next three decades, fintech upstarts have been quick to tap into the mobile-first tendencies of young consumers seeking out advice. Traditional financial institutions services, though established within their sector, have not been as proactive as fintech disruptors in adapting their communications channels to suit the incoming generation of digital natives.
According to L2’s Financial Services report, millennials spend 79% of their time on Snapchat, 72% of their time on Instagram, and 36% of their time on Facebook. However, while 98% of financial services brands maintain on-site career portals for recruiting purposes, only 60% have extended those efforts to dedicated social media channels, and even fewer have begun experimenting with emerging platforms.
For example, despite 39% of US millennials agreeing with the statement “I trust digital advice”, only six out of ten leading financial brands take advantage of this fact by using chatbots on Facebook Messenger. Even those that do use chatbots don’t seem to prioritize them. When L2 researchers asked the chatbots various questions, more than half the time they got no response.
Social media channels, both established and emerging, present traditional financial institutions with a multitude of opportunities to reach millennials, who make up the largest age demographic in the US as of last year. While some brands including J.P. Morgan and Goldman Sachs have reached out to freshly-graduated millennials via Snapchat and Spotify, most have been slow to target the group. If legacy brands want to remain as established in the digital world as they are otherwise, they will need to do more than just scratch the surface of social media.