utah.bank 28 1 It’s no secret that over the last twoplus years public trust in our nation’s leading institutions has severely declined. Whatever the reason, people are less likely to look outside of their inner circles for guidance and advice on important life decisions. Vericast Survey Reveals a Disturbing Trend What you may not realize is the shift from institutional trust appears to have bled into the financial services industry. Our recent survey of 1,000 U.S. adults revealed this alarming trend: people are increasingly turning to alternative sources for financial information, advice and assistance. While our poll shows that every generation is affected, the change in attitude and behavior of Generation Z (ages 10–25, our survey included those 18–25) stands out. This coming-of-age generation, now with more income to spend, save and invest, is the most likely to report that they may seek financial advice from online practitioners who in many cases appear far less qualified, knowledgeable and accountable than professional financial advisors. It’s Not Only Gen Z With Trust Issues A notable percentage of millennials (25%) and Generation X (22%) say they also turn to YouTube videos for important financial planning advice for paying off debt, choosing loans, opening credit card accounts, taking out home equity lines of credit, and more. Yes, It has Come to This … More than 60 percent of all survey respondents said they seek financial advice from social media. Institutions must now compete with Tik Tok®, YouTube® and other sometimes opportunistic social media influencers for the opportunity and privilege of being consumers’ go-to for the financial advice, products and solutions they need to navigate surging inflation and a slowing economy. Interestingly enough, the resource that scored highest across all generations was friends and family. Financial Institutions Have a Clear Advantage This additional survey information provides financial institutions with valuable insight into LOAN STRATEGIES TO HELP YOUR CUSTOMERS FIGHT INFLATION AND EARN THEIR TRUST Stephenie Williams Vice President, Financial Institution Product and Strategy, Vericast 34% of Gen Z consumers surveyed say that they are getting financial advice from TikTok® and 33% are getting it from YouTube®, while only 24% of this age group are seeking advice from financial advisors.
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