Consumer-facing financial brands must recognise the lower tolerance younger generations have for social harm, if they are to succeed in the coming years.
That was the warning from the chief executive of financial education brand, Your Juno, addressing delegates at this year’s Money 20/20 conference in Amsterdam.
Citing the recent criticism of some Buy Now, Pay Later (BNPL) brands as an example, CEO Alexia de Broglie, said that younger customers have become savvier to marketing techniques which can saddle people with unmanageable debts.
“Let’s think of the example of Buy Now, Pay Later,” she said. “There has been a backlash because consumers have woken up and realised that these products have not necessarily put them in a better situation.
“There is now a sense of duty that financial institutions need to have towards their consumers,” she added.
de Broglie cited the UK Financial Conduct Authority’s recent introduction of Consumer Duty standards as a reflection of the growing expectations in society, adding that financial institutions need to ensure education is “at the core” of products in today’s competitive environment.
Speaking in the same seminar, Ann Marie Juliano, chief executive and founder of Muse Finance, said that, increasingly, companies need to include education as an accompaniment to products and services just to succeed.
“It is finding a balance between education and making [products] accessible,” she said, adding that collaborations between organisations can make this easier to achieve.
de Broglie concluded by praising the work that neobanks and challenger brands had done, to date, in driving change across financial services.
“Challenger banks have competitively changed the industry for traditional banks,” she said. “This is an example of the innovation we need to see. We need to make sure there is enough competition, with innovative solutions. It’s about looking at consumers first.”