Like it or not, social media platforms, along with financial technology, are increasingly becoming more American-friendly resources for making financial decisions, according to a recent survey.
While online tools from financial service providers are the most trusted information resource (at 63%), one in five respondents to TIAA’s digital engagement survey say social media content is a resource. unavoidable. A third say they trust social media content to help them make financial decisions, while 32% say they trust social media influencers and celebrity financial advice.
The survey of 1,000 American adults also found that respondents are open to using new devices to manage their finances. Home voice assistants (42%), smartwatches (43%), or a chatbot on a financial provider’s website (44%) are tools they feel comfortable managing their finances with. That said, many still prefer to use desktop computers (39%) to manage their finances, including retirement plans and bank account balances, despite their openness and ease of use with new technology.
Additional results show that around 3 in 10 (29%) are interested in using the digital tools of a financial service provider that aggregates and tracks their information across all of their accounts and investments. A third of those surveyed say they already use their financial provider’s digital tools to track financial information across all accounts.
And while Americans are using more technologies like video calling and contactless payments in their daily lives, they are divided over the impact it will have on their finances in a post-pandemic environment. For those who work with a financial advisor, half prefer interacting by phone rather than using video calls (25%). One in five respondents also say they don’t plan to connect with their financial provider as often through a mobile app or phone after the COVID-19 pandemic, unless they need to troubleshoot a problem. account or investment.
The survey also found that the pandemic has affected the way Americans manage their finances, with significant generational differences. According to the results, 71% of people under 65 have changed the way they manage their finances, compared to only half of those over 65.
Among generations, Millennials, especially men, spend the most time managing their finances. Overall, TIAA found that half of Americans spend less than an hour a week on their finances, but 39% of Millennials report spending four or more hours a week managing theirs, compared to just 25% of Gen Zs. and only 7% of Baby. Baby boomers. The survey also found that men are almost twice as likely as women to spend four or more hours per week on personal finances (30% vs. 16%).
Younger generations are also more interested in a financial health check. More than half of people under 65 say they are interested, compared to only 30% of people over 65. The most preferred meeting method for a financial health checkup is in person, at 26%.
“In today’s attention economy, many people are turning to tools and resources other than their vendors for information on how to manage their finances,” says John Elton, vice president Principal and Chief Information Officer of TIAA Bank. “Financial services companies are uniquely positioned and must offer high-tech, tactile tools across all platforms to respond to all generations they find themselves in, whether online or in person, to ensure that we let’s help them recover financially from the pandemic. “