Why Can’t Banks Show A Little Empathy For Generation Rent?
With today’s property prices, few Australians under the age of 40 can afford to buy a house. So why do banks keep marketing to us as if we can? Lucy Baldwin (pictured below) has some advice for financial institutions looking to target Generation Rent.
Fact: much of the marketing young people receive from financial institutions is simply irrelevant. While bank marketers have long embraced life stage marketing, the traditional life stages our parents and grandparents experienced continue to diminish. And home loan offers especially are falling on deaf, jaded ears.
Only 23% of millennials live in homes that they own with more than 40% of first-time buyers over the age of 40. According to Goldman Sachs, in the coming years, buying your first home in your mid-40s will be the norm.
At the same time, marriage rates are decreasing year-on-year across the developed world. There are now a whole new set of life stages such as living with your parents while searching for a job, house sharing, or saving money and getting a second job to cover the rent for the 20 odd years you’ll be paying for someone else’s mortgage instead of your own.
That’s why it really irks me that I constantly receive emails like this one:
While I understand banks need to sell products – I do work in the marketing industry after all – this piece of collateral, and the hundreds more I have received just like it, is completely irrelevant to me. And at a time when financial institutions have vast arrays of data to profile customers, there is simply no excuse for such hit and miss direct advertising.
Instead of sending the same marketing collateral that our parents might have received at our age, why not embrace the simple truth that we aren’t living the life they did and try something a little different on us? Something with a little insight and empathy. Here’s a start…
Tell it like it is
We’ve done the sums and we’re smart enough to know we’re a long way from buying our own house or, for some of us, moving out of our parent’s place. It would be refreshing if financial institutions could acknowledge that and suggest some savings and life goals that are a little more realistic.
How about cleverly designed offers that address real-life challenges that require financial assistance? From the increase in gap years or sabbaticals, the extension of education into second and third degrees or even women freezing their eggs to extend their career or buy time to find Mr or Ms Right.
Give us a purpose to rally behind
There’s plenty of research out there to suggest millennials are more purpose driven than previous generations. It’s important to us that the things we buy into do not harm the planet or the people in it. Even better, we like to choose products that support a good cause.
The most exciting financial advertising I received this year came from CBA. The organisation is offering to waive brokerage fees for investing in ethical funds that donate a portion of revenue to youth charities. This ticks two boxes: CBA makes it possible for me to make an investment in my future that is within financial reach and, in the process, help others.
Give us an incentive to save, not spend
We know interest rates are at an all-time low, so why not take the initiative and give us new incentives to save money instead of encouraging further credit card spend? How about rewarding savers with frequent flyer points, cinema tickets and vouchers? Sure, it’s an investment, but in the long term, it will pay dividends when more of us have the savings required to invest in high-value products like home loans. And more importantly, the bank will have helped us and built a relationship along the way.
We love the sharing economy, give us another way to embrace it
It doesn’t get more millennial than the sharing economy. We embrace Uber and love Airbnb. so why not give us new ways to share that enable us to achieve our financial goals a little faster? For example, pooling funds with friends to invest in shares, or to get a home loan. Or even tools to make sharing rental properties simpler.
Whatever tactics financial brands choose to adopt, the point is clear: traditional life stages are fundamentally changing. Banks need to wake up, stop peddling the same products they always have and take advantage of the fact that the challenges faced by younger customers today offer a great opportunity to create enduring brand connections.
Lucy Baldwin is a Strategy Consultant at independent branding agency Principals.
Latest News
Allied Nabs Nicola Gold From Pico International Dubai
Allied Global Marketing (Allied), a full-service integrated marketing agency working with entertainment, consumer and lifestyle brands, has announced the appointment of seasoned executive Nicola Gold as business director APAC, brand experience, effective immediately. Gold assumes a pivotal role in building the Brand Experience offering as part of Allied’s strategy to develop a truly integrated full-service […]
Nine’s Push For Gold, Silver & Bronze Ad Opportunities Could Break New Ground In Broadcasting
Nine insists that AI won't dominate its Olympics coverage. And not merely because Bruce McAvaney doesn't understand it.
TV Ratings (16/04/2024): Toxic City Girls Too Much For Farmer Bert
Fans calling out toxic behaviour on Farmer Wants A Wife, seemingly unaware that's the very premise of any dating show.
Kaimera Wins Afterpay ANZ Media Account
Have couriers even started to mention you're overdoing the online shopping? Probably best to avoid this Afterpay news.
Industry Reacts: Stuff Group Swoops In To Save 6pm News After Newshub Closure
As you'll read here, New Zealand's media's in a right state of flux. And nor have they forgotten 1981's underarm.
a2 Milk Launches “Only a2 Will Do’ Brand Platform In First Work From BMF
A2 milk drinkers tend not to bother everyone with their gut health issues & it's a lesson for vegans & the gluten-free.
Can You Recite It In Under 4 Seconds? Maccas Relaunches Iconic Competition With Modern Twist
Do you know what would make a fantastic ad? Drunk people at 3am trying to recite the ”two all-beef patties"
‘Liar, Liar’: Lehrmann Exposed As High Profile Defamation Case Comes To A Close
Having exhausted all avenues in his defamation case, is there only one option left for Bruce - reality television?
MECCA & Fendi Among Premium Advertisers For oOh!media Woollahra OOH Network Launch
If you've not been to the snooty suburb of Woollahra, the locals would like to thank you again for staying well away.
Yahoo Academy Announces Class Of 2024
This academy is strictly for "emerging leaders". Courses don't include 'sleeping at your desk' or 'bunking off early'.
Top 35 Media Leaders Announced For 2024 TikTok Agency Accelerator Program
Despite the ban threats, TikTok keeps marching on. Cementing its reputation as the Julian Assange of the tech.
AiMCO Announces First-Ever Diversity Webinar To Explore Inclusion In Influencer Marketing
Think influencer marketing's a little on the white side? This free webinar's for you. Sadly, it's not given TV ideas.
Anthony Ellis Promoted To CEO Of Publicis Media Exchange
Anthony Ellis takes the opportunity to thank the office fern in his press photo following recent work promotion.
Indigenous Stars 3% & Jessica Mauboy Fuel New Supercars Campaign Via WILDCARD
Jessica Mauboy brings the tunes to new Supercars campaign. Meanwhile, Shannon Noll promises a revenge best served cold.
Nine Launches New Look Olympic Experience 100 Days Out From Paris 2024
9Now rolls out Olympics push, but can it bring Aussie gold in handball?
Must-Watch Marketers At Cannes In Cairns!
Is there a better conference agenda than Cannes In Cairns, we ask? Sure, Captain Feathersword yet to put pen to paper.
Retail Media Demands A New Organisation Dynamic
There's no denying retail media's become adland's hot button topic du jour. Much like tomato being the soup du jour.
News Corp & NRMA Unite For Urgent Action To Fix Notoriously Dangerous Bruce Hwy
A top road safety initiative from News & the NRMA. If they could turn their attention to potholes next would be ideal.
Facebook And X Ordered To Remove Sydney Church Stabbing Video; Meta Swiftly Responds, X ‘Too Busy’ To Care
Tech giants ordered to stop running video of Monday's church attack. Not that it's bothered most major news sites.
Tara Ford To Serve On Titanium Jury At Cannes Lions
Monkeys seemingly ruling themselves out of back-to-back Titaniums, as agency ECD takes up Cannes red pen & clipboard.
“Be Like A Skunk At A Garden Party”: Author Patrick Radden Keefe On Investigating Pharma
Patrick Radden Keefe (pictured), author of global bestseller, Empire of Pain, talked to B&T‘s Nancy Hromin at the Samsung Jaipur Literary Festival about reputation laundering, aggressive marketing strategies and the privilege of still being able to practice pure journalism and be paid for it. Keefe’s in-depth reporting in publications such as The New Yorker and […]
Stuart Archibald Departs Half-Eponymous Agency, Archibald Williams
Stuart Archibald departs Archibald Williams after 12 years. And, no, it's not for golf & bowlo club-priced schooners.
B&T’s Campaign Of The Month Wrapped: Queensland Health’s Frightening Skin Cancer Campaign, Via CHEP
Queensland's beautiful one day, perfect the next but there's still lots that can kill you - crocs, skin cancer & XXXX.
TV Ratings (15/4/24): Amidst It All, Seven News Is The Most-Watched Program In Australia
Network 10 may have had a win in the courts yesterday but, alas, it appears viewers heard all about it on Seven.
Even More Cairns Crocodiles Awards Judges Added As Entries Go Gangbusters!
Cairns Crocodiles assembling ominous judging panel that just so happens to coincide with B&T's office sponge bake off.
“Bias Influences Who & How We Appoint”: Aimee Buchanan On Why Diversity In Leadership Matters
When Aimee speaks, B&T goes full Vanilla Ice: "Stop collaborate & listen, GroupM boss back with a brand new invention."
Dove ‘Won’t Use AI To Represent Women’ To Celebrate 20 Years Of ‘Campaign For Real Beauty’
Yet again, Dove pioneering the adland zeitgeist but ignores current clamour around AI, thank god.
Multicultural Comms Agency Ethnolink Announces AI-Enhanced Multilingual Campaigns
Here's an excellent multilingual AI initiative that will hopefully allow us all to finally comprehend drunk Irish people.
Gate 7 Bolsters Visit California & Brand USA Teams
Travel marketer boosts its team for its US destinations. Any talk of the Aussie dollar remaining strictly off limits.
Mediahub Snares Linda Fagerlund From Carat
Mediahub nabs Carat's Linda Fagerlund after reportedly dangling a large carrot or similar root crop vegetable.
BMF’s Tom Hoskins & Dave Roberts Promoted To Group Creative Directors
More evidence two brains are better than one comes these two promotions. After all, a third brain can cause tensions.
QMS Secures Toyota, Stan, Allianz and Patties Food As Paris 2024 Launch Partners
No one's looking forward to Paris like B&T. We're particularly excited about watching countries who detest one another.
Publicis Groupe APAC Strengthens Its Senior Leadership Team With Key Appointments
Publicis rings the changes with three new appointments. No wonder, given it got all that new biz money last year.
Slew Of Promotions & A New Hire At History Will Be Kind
It's promotions & new recruits at History Will Be Kind. Plus the inevitable angst for staffers who didn't get one.
Latto “Talks Snack” With Menulog Via Thinkerbell
Do Aussie agencies think ads with Americans makes us want to eat more? The food deliverers appear to think so.
ING Invests In Finance Partnership With Seven
Seven amps up its finance coverage in latest partnership. Sadly, it's not bringing Kochie out of the cryogenic freeze.