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Radio Matters

Current news, information and insights about broadcast radio growth brought to you by the Radio Advertising Bureau (RAB), a not-for-profit trade association representing America’s broadcast radio industry.

Bank on Radio

Author: Annette Malave, SVP/Insights, RAB

Today’s economic environment is causing Americans to view examine their finances and the institutions they use for savings. According to Northwestern Mutual’s 2022 Planning and Progress study, the average amount of savings dropped from $73,000 in 2021 to $62,000.

According to this study, the impact of the current economic uncertainty has caused Americans to review their habits. Nearly half (48%) have adapted to the situation, and nearly three-quarters stated that they have adopted better financial habits.

Understanding the mindset is important. Similar to other industries, consumers today have expectations of the banks and financial institutions they use and trust with their hard-earned money. What trusted medium better that radio to reach these consumes. Radio reaches 87% of adults who have a savings or checking account, and 85% of heavy radio listeners have these services.

Heavy radio listeners are financially savvy and aware. Eighty-eight percent of heavy radio listeners are aware of how much is in their bank account, according to MRI-Simmons data. They are also “savers.” Eighty-three percent would rather save in advance than be in debt, and 67% disagree that they only save for a specific purpose.

When it comes to loyalty, financial institutions should work hard to gain the trust of heavy radio listeners. Over three-quarters (76%) of heavy radio listeners turn to only one to two financial institutions. What matters to them?

  • Cater to their preferred way of banking and make it easy. Physical branch visits do not appeal this group, and more than three-quarters (76%) use the internet to carry out their day-to-day banking.
  • Help them with their planning. Not only are they savers, but their future matters to them. Eighty-two percent of heavy radio listeners believe that investing in their future is important to them.
  • Try to alleviate some of their concerns. As savers, they are also mindful of their credit – 75% are concerned about credit card identity theft.
  • Educate them on new services. Heavy radio listeners believe in saving especially for their future. Knowledge and information about new financial options is important to them. They like to know as much as possible about a financial service/investment before they commit (79% agree).

There’s no doubt that these are challenging times – for consumers and businesses alike. Banks of financial institutions have had to adapt and change like other businesses to meet the needs and expectations of those individuals who place their hard-earned money into the investment, products and services offered. As a trusted medium, radio can help communicate and inform potential “savers” of these products and services.

This post was originally published on Radio Matters.