Over the past five years, India’s personal finance ecosystem has witnessed some interesting developments, with digitalization taking center stage. In May 2021, the Indian mutual fund industry crossed over 10 crore folios. Although the personal finance services industry has seen the entry of several new players, the public is less aware of personal finance. People are familiar with mutual funds, stocks, savings plans and other investment options, but are still unable to make sound financial decisions.
Getting people to adopt personal finance services is quite a challenge with low financial literacy among consumers. Undoubtedly, people are interested in getting up to speed on financial matters, but the common man finds it too difficult to keep up with the financial terms and jargons generally used in business communications. However, the situation is slowly changing and financial companies are now resorting to new advertising tactics to reach consumers in a more efficient and improved way. Here are some ways advertising can help raise awareness of the personal finance industry:
1. Educational content to bridge the financial literacy gap
If you want someone to try a product, you must first convince them of its usefulness. The same also applies to personal finance services. Where previously much of the advertising focused solely on promoting the services, a shift to creating educational content can help people naturally engage with the services. With advertising that demystifies personal finance, consumers are better able to understand its benefits. The first step is to break down concepts into simple terms and advertising is an effective medium that can convey education to the common man in an interesting way without boring them with long explanations and complex language.
2. Fun and quirky social media ads can appeal to the younger generation
GenZ uses social media to follow news, trends and connect with brands. Social media advertising helps reach consumers where they are most active. Social media is more of a fun and entertaining experience for people and financial firms can leverage this fun element to their advantage. Advertising personal finance services with fun and creative elements could be a game changer. Fun and original advertisements will not only grab attention, but effortlessly convey the features and benefits of the services, thereby building trust and encouraging consumer engagement. While finance is generally a dry topic, fun social media ads can help spread awareness of various financial services.
3. Promoting Thought Leadership Content Will Help Make Informed Decisions
Personal financial services companies can promote thought leadership content through advertising. As people are now more serious about managing their finances, they are really keen to learn and brush up on their financial knowledge. They want to know current market trends and proactively align their financial plans in response to dynamic market conditions. By harnessing the power of advertising, companies could promote thought leadership content that will educate audiences about the deeper nuances of the financial world. This will dispel their apprehensions and encourage them to explore a range of financial services that are widely available but remain vastly underutilized.
4. Advertising can help consumers independently explore the benefits of financial services
Advertising can be leveraged to empower consumers to use financial services with minimal assistance. Consumers today, especially millennials and GenZers, are hesitant to talk to customer support managers and would like to do things on their own without hassle. Businesses could digitize their offerings and use advertising to empower consumers to install an app or use their services in the best possible way. Ads using storytelling techniques could help get the message across quickly, provide a human factor, and motivate consumers to sign up for services.
Advertising can be a powerful tool for raising awareness of personal finance services. Although companies offer a wide range of financial services, only 27% of the Indian population is financially literate according to a recent study conducted by the National Center for Financial Education. This incredibly low level of literacy can be overcome through clever advertising that arms the common man with enough knowledge about prudent money management. With digitalization rapidly accelerating during COVID, reaching consumers has never been easier. Advertising can go a long way in raising awareness if used correctly and it’s high time companies innovated with advertising campaigns to get more people interested in the art of managing finances!
The author of this article is Mr. Arun Fernandes, Founder-CEO, Hotstuff Medialabs