Charting The Path:
Wealth
On 1 November 1976, ABBA released their uber-famous song Money, Money, Money. Benny Andersson and Björn Ulvaeus’ words clearly struck a chord, with the song reaching number one in Australia, New Zealand, Belgium, France, Mexico and West Germany.
While it was nearly half a century ago, the opening lyrics “I work all night, I work all day
To pay the bills I have to pay… And still, there never seems to be, A single penny left for me” is a sentiment that rings true for many. In fact, research from The Growth Distillery shows that half of Australians feel they are worse off than 12 months ago, despite 94 per cent of us putting more effort into our finances.
That’s led to a feeling of malaise among a portion of consumers, with a quarter of Australians saying they don’t like to think about their personal finances. That apathy can be a sizable handbrake for growth.
This is the latest in the Charting the Path series in which B&T and The Growth Distillery (TGD) unpack research to help marketers chart the path to growth across different categories. In this piece, we’re going to take a look at wealth and how brands can find shoots of growth in an economy that is in the doldrums.
Wealth:
The Macro Backdrop
Reader, we’ll put this plainly. The macro backdrop for many people’s money is not looking good.
Inflation has been at significantly higher rates over the last four years than any other point since the turning of the millennium. In December 2022, inflation peaked at 7.8 percent, higher than any point since the 90’s. Inflation has been on a downward trend, but recent macroeconomic factors—including Trump’s tariffs have seen it spike back up in the most recent quarter to 3.2 per cent.
Regardless, The Growth Distillery found that almost half of Aussies (45 per cent) believe their household’s financial situation compared to 12 months ago is worse off, only 17 per cent feel better off, and around 37 per cent feel as if they’re about the same.
Australian households that earned less than $80,000 were hardest hit, with 56 per cent saying they were ‘much worse off’. This proportion gradually declined the wealthier a household’s income; 37 per cent of those earning more than $300,000 said they were worse off.
That sentiment remains largely unchanged, too, with research from Kantar showing three-fifths of Aussies feeling they can’t ‘tackle a major expenseʼ and worry about ‘being able to pay for the necessitiesʼ and 38 per cent of us saying we’ve ‘been in a situation where their
income doesnʼt cover living expensesʼ.
That pessimism spans all income levels, too, with two-thirds of low-income earners and half of high-income earners rating the countryʼs financial situation poorly.
All told, The Growth Distillery found in its Influence Codes research that 72 per cent of Australians don’t feel optimistic about their financial future and two-fifths felt worse off than this time last year.
In that environment, one might reasonably worry that brands would find it incredibly hard to cut through. And, with some Australians, it is.
This macro environment has created two types of consumers, those that lean in and those that lean out.
Those leaning in are seeking to get ahead of the market and make the most of their money in a tough environment to ensure a better, more harmonious life for themselves, their family and even their children to come.
The leaner-outers, meanwhile, are struck by a state of paralysis on account of their lacking confidence in their finances. They’re actively avoiding engaging with their finances because the problems they’re facing appear too daunting to conquer.
While this two-speed consumer market might lead one to think there is an unfordable divide, The Growth Distillery’s research shows that isn’t necessarily the case. In fact, there’s a human truth at the heart of effective financial marketing communications and strategy that applies equally to both sets of consumers.
Relatable and Selfless Advice
You might think talking about money is rather gauche. But consumers don’t. In fact, they expect it and in this time of heightened economic stress, they expect it even more so.
The Growth Distillery’s research into influence makes clear that the most powerful driver of decision-making in the financial services sector is relatable and selfless advice.
While relatability and selflessness might not be words you initially associate with the financial services industry, consumers’ lack of real interest in home loans, credit cards, current accounts and insurance policies (save how much money they owe or have on-hand) means there is a significant opportunity for smart, empathetic marketers.
Again, The Growth Distillery’s research bears this out. Half of Australians are not financially literate, four-fifths don’t feel knowledgeable about financial concepts and nearly half lack confidence when choosing financial products.
However, the method of building influence in the sector has changed. More than half of Australians are quite or very sceptical of traditional financial institutions such as banks, government agencies, insurance companies and super funds. The traditional top-down model of influence in the sector is gone.
Most Australians turn to friends and family or search engines for financial advice (41 per cent) followed by financial experts (31 per cent), traditional media (25 per cent) and social media (20 per cent). This has created a situation where to a greater or lesser degree, the blind are leading the blind.
Smoothing The Process
It is important to remember, first and foremost, the category entry point to financial decisions is often one of stress, or at least revolves around a significant life moment—whether it’s buying a house, car, planning an expensive wedding, or anything else. There’s a lot on the line and consumers are in a heightened emotional state.
When the need to make a decision arises, half of Australians feel negative emotions such as anxiety and overwhelmedness. When we start exploring options, 43 per cent feel negative emotions—when considering superannuation providers and options or tax accountants, a quarter of Australians say they feel overwhelmed given the sheer number of options. At this time, Australians need clarity and familiarity with the options available, as well as confidence that the choice they’re taking is the best one for them.
It’s here where advertising and media, in particular, can play a key role in smoothing the selection process. For instance, half of Australians said they would have found it useful to have more media content about the options before them. Two-fifths, meanwhile, said they would find more advertising useful, though only a quarter said they can recall ads at this stage.
Marketers can use their ad spend and content marketing efforts to reinforce core messages and information about their products. Plus, as generative AI becomes a more mainstream channel-to-market, content marketing and media will likely become significantly more important in discovery, consideration and maybe even conversion. In the coming year, it’s the human, personal touch that will give consumers confidence in their decisions and your business.
But importantly, you should not add to the noise. Nielsen found that in 2024, financial services media spend had increased 9 per cent on 2023 to $610 million.
Marketers need to educate consumers through simplification, as well as validating their choices once made. A quarter of Australians continue to research the sector after their choice, increasing the risk of post-purchase regret—that may sound counterintuitive but it opens the door to potential cross-selling in future.
A third are actively consuming content related to their choices and a further third of those are consuming content directly from financial institutions, such as CommBank’s Brighter content suite. Nearly half are talking to others about their purchases and just under a third are actively promoting brands and products to friends, colleagues and family. That’s a powerful flywheel for further growth if done correctly.
Charting The Path
Charting the Path to growth in the finance category requires brands to become more human and approachable. In a highly regulated and competitive sector, that isn’t always easy or straightforward but consumers will reward any brand that manages it over-and-above.
That need for more human content is born from the deep anxiety and stress that the current macroeconomic environment has created for Australians, as well as the citizens of nearly every other country around the world. But it’s also born from the category entry points of stress and significant moments in someone’s life.
Charting the path requires marketers to simplify and open their arms to help consumers navigate a category they don’t fully understand or feel confident in. Messages asking them to read the terms and conditions at the end of advertising are all well and good, but if, like most Australians, your consumers cannot penetrate the jargon and legal-ese that abounds in these documents, then your efforts will not lead to growth or success—they will only add to the noise.
And when consumers are planning some of the most significant purchases or moments of their lives, the last thing they need is more noise.
