Are You Afraid of Money?
filed in Banking & Cards, Loyalty Asterisk™ on Oct.23, 2009
When people are asked about their greatest fears, you might be surprised by the results.
In recent polls, I have seen public speaking rank ahead of getting cancer and being stricken by terrorist attacks!
Apparently in Canada, the list would be different still. A recent article in the Toronto Globe & Mail reported that in a recent Angus Reid Strategies poll of 624 Canadian parents, talking about finances with their children was one of their greatest fears. Over all, the Moms and Dads surveyed felt better prepared to discuss sex, drugs and alcohol than to broach the topic of finances. And I thought that the conversation about the “birds and the bees” was enough to break a sweat!
According to Sarah Boesveld’s article, the survey findings shine a light on the real state of adult financial literacy and points to the particular squeamish-ness of Canadians about financial conversations. Steve Garmaise, associate director with Foundation for the Advancement of Investor Rights (FAIR) was a bit more opinionated, saying “most Canadians and most parents are fairly ignorant about financial matters…and would rather hand it off to someone else.”
I would venture to add that Canadians are not alone in this regard. This is yet another reinforcement of a clear opportunity in the marketplace, and the enterprise which is able to communicate financial basics and planning skills to the public without making them uncomfortable can create loyalty among its customer base without giving away the first point or mile.
Who is better to assume this leadership role than commercial banks? Banks have multiple channels through which they can communicate (retail branch networks and secure internet banking portals) and enjoy a high frequency/high visit environment. They have an edge over competitors including brokerage firms and insurance companies which have less frequent interaction with their clients and can be too narrowly product focused.
Having just written about Social Banking and illustrating how Bank Of America is launching products designed to address consumer’s need for financial product transparency, the Canadian survey is interesting and timely. The question is: how should a bank go about executing a financial literacy campaign?
Do you include features of Financial Literacy in a relationship banking model, or is it better to skip the rewards and focus on delivering a clear message and creating trust that the products recommended are the ones a person actually needs? Time will tell, but I do believe that “what doesn’t kill you makes you stronger“. For banks, this means that flagging consumer confidence in their offerings coming out of this recession can be used as a golden opportunity.
Banks can rebuild their brands and stake out a competitive edge in the near term through marketing products as financial advocates for their clients and with a message based on value and transparency. This is the time to leave the disclaimers, fine print, and hidden clauses out of product offers. No Loyalty Asterisk™ here, please! Sun Trust is talking about “Banking Solid“and Bank of America is leading with its innovative approach to credit cards and mortgages.
Let’s see which organization makes this message a part of the core brand message, not just a convenient fad that dries up and blows away when times get better.
H. Leigh Steves on 
Bill Hanifin on
October 23rd, 2009 on 10:53 am
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October 23rd, 2009 on 6:45 pm
I suppose I look at this differently, surprisingly enough.
I don’t see all of these as fears: those ideas, broached as areas of concern or potential pitfalls, with the ability to control the lives of those you love, are more along the lines of enemies or threats to an individual’s or family’s health and well-being. The concerns surrounding addictions to behaviors, arising out of neglect, or out of a propensity toward diversion, strike fear in a parent’s heart, through concern, but I don’t believe should be viewed as the object of one’s fear, as much as a subject for deliberation, one which presents itself when appropriate.
Finances, while sometimes being a component of some foul behaviors, shouldn’t be the subject, or even a reason, attributed to any of these behaviors. A healthy, stable mentality of strength of moral values, and a system for those values to exist, should be a precursor to parenthood. Children learn, what they live, not what they’re told to live… they understand what they see, they value what they love … a child always watches and learns from its parents, first.. so, it’s not what you tell them, but what you’re doing.
That said, finances, can be an Achille’s Heel; a place for unhappiness, uneasiness, instability, fear… to exist and fester, if allowed. We, unfortunately, have basic needs for human health to exist; we need shelter, we need renewal (in the form of caloric intake), and we need comfort which provides opportunity for rest; these are needs which require financial wherewithal, and these are the only requirements for happiness a parent can and should always provide. So, financial health = basic needs being met; happiness, then, comes in knowing strength through security (a parent’s promise: “I’ll always be there, you need never worry.”)
So, in this frightening economy, and with the knowledge that, all economic trends have control over our financial destiny, currently, I’d say these are personal financial health fears on the minds of the parents you describe; these fears should not, however, be something we should pass on to our children. My philosophy, in life, as in football*, deal with it, don’t pass it forward. (*this is for another day, another comment, I’m sure of it)
Which brings me to my final thought, for now, with regard to this post: public speaking and the fear of reproach… I’m doubtful that the speech is the fear, it’s more likely to be disinterest. We aren’t fearful of people hearing what we’re saying, we’re fearful of people not caring.
Thanks for the opportunity to free myself of these burdens … this place to harbor opinion.
October 25th, 2009 on 2:29 pm
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November 9th, 2009 on 9:54 pm
[...] in Banking & Cards, Thought Leadership on Nov.09, 2009 I recently wrote about how Canadian parents would rather talk with their children about sex, drugs or alcohol than [...]
January 30th, 2010 on 7:35 am
Influence can be defined as the power exerted over the minds and behavior of others. A power that can affect, persuade and cause changes to someone or something. In order to influence people, you first need to discover what is already influencing them. What makes them tick? What do they care about? We need some leverage to work with when we’re trying to change how people think and behave.
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