PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

More Young Adults Get Financial Advice from Social Media Than Their Bank

By Wesley Grant
October 17, 2024
in Analysts Coverage, Banking, Digital Banking
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
social media financial advice, Wirecard EPOS app, UK P2P lending

Outdoor shot of thoughtful curly haired beautiful woman browses mobile phone uses navigation app walks on city street during travel journey sends content shares multimedia online focused away

Social media has become the primary source of financial advice for digitally native young adults—roughly 40% of Gen Z and 36% of millennials say they learn about financial topics from these platforms.

According to a recent study by FIS, less than a quarter of younger adults receive financial advice from their financial institution. Despite being aware of its drawbacks, younger generations still rely heavily on social media for financial guidance. In fact, roughly half of Gen Z respondents acknowledged that social media isn’t a reliable source for financial advice. These platforms often feature financial messages that are distorted, unrealistic, and fragmented.

“As our Pulse survey reveals, younger generations are increasingly turning to social media for financial advice, which poses a challenge for traditional banks,” Hashim Toussaint, GM of Digital and Open Banking at FIS, noted in an email to PaymentsJournal. “But while this may initially cause concerns, banks should actually see this as another medium through which they can connect to their existing customers and attract new customers to their brand.”

The Financial Picture

Younger generations are less likely to invest in traditional investment products. The report found that most young adults keep their money in checking accounts and digital wallets. While digital wallets can be a useful tool for managing and digitizing finances, they are not always the safest place to hold funds, as they often lack FDIC insurance, unlike bank accounts.

Although most Gen Z consumers may not have the most optimized financial outlook, they are actively engaged. The FIS survey revealed that Gen Z opened more financial accounts in the past year than any other generation surveyed.

Embracing Dialogue

Gen Z is especially in play with financial institutions as they age into adulthood and branch out on their own. While most Americans are loyal to their financial institution, 66% of Gen Z and millennial respondents said they would switch banks if a better offer came along.

Young adults are also tech-savvy and actively engaged with their finances, but often unsure of the proper financial steps to take. They are hungry for guidance, but oftentimes the only place they find it is online.

“Banks are uniquely positioned to empower their customers with personalized and data-driven advice, deepening those relationships while bringing them the guidance they are desperately seeking to ensure their financial well-being,” Toussaint said. “Consumers still place their highest levels of trust with their financial institutions, so it is now up to those institutions to embrace social media as a new way to dialogue with them.”

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Digital BankingFinancial AdviceGen ZSocial Media

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    cross-border tokenized deposits

    Ant International and HSBC Pilot Cross-Border Tokenized Deposit Transfers on Swift

    December 12, 2025
    Fiserv stablecoin

    Three Small Business Trends That Banks Can Hop On in 2026

    December 11, 2025
    echeck

    Beyond Paper: Why More Businesses Are Turning to eChecks

    December 10, 2025
    metal cards

    Leveraging Metal Cards to Attract High-Value Customers

    December 9, 2025
    fraud as a service

    Keeping Up with the Most Dangerous Fraud Trends of 2026

    December 8, 2025
    open banking

    Open Banking Has Begun to Intrude on Banks’ Customer Relationships

    December 5, 2025
    conversational payments

    Conversational Payments: The Next Big Shift in Financial Services  

    December 4, 2025
    embedded finance

    Inside the Embedded Finance Shift Transforming SMB Software

    December 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result