For the past three years Arteaga & Arteaga has led the local advertising and marketing industry in the creation of a knowledge and data bank that is of great value to agencies and clients alike. A&ANSWERS, our comprehensive Consumer Pulse program, places attitudes and trends front and center, in tune with the speed of change of our daily lives. By constantly monitoring consumer confidence and their sensitivity to issues and market realities, A&ANSWERS reveals what ideas or activities are relevant to our target today.
A&ANSWERS latest Consumer Pulse addressed the issue of money and financial institutions, their relevance and the role they play among the different generations. This is a particularly relevant subject in light of Puerto Rico’s current economic landscape, a time in which citizens are immersed in a public discourse focused on debt, recession, default, bankruptcy, unemployment, financial crisis, etc. A&ANWERS wanted to know: How has this affected the lives of citizens? Have they lost trust in banks and the financial system?
To conduct the study we surveyed a pool of approximately 700 people, representing the major generational groups: Baby Boomers (50 to 72 year-olds), Generation X (34 to 54 year-olds), Millennials (18 to 34) and Generation Z (born in the mid-1990s).
Among the study’s key findings, we found that in terms of financial products, seven out of ten people ages 18 and over have a checking account. Of that group, a whopping 85% of participants ages 20 through 25 have checking accounts. However, when it comes to planning for the future, the outlook is a bit gloomy, as only one out of every ten have a retirement account.
Of those polled that engage in banking activities, there was an overwhelming preference across all age groups for Banco Popular. Cooperativas emerge as the second most important financial institutions showing a strong competitive appeal specifically among younger demographics. (More to follow on this finding.)
The Consumer Pulse also revealed that half of those surveyed ages 18 and older do not have a credit card, and they describe their relationship with their banking institution as being in the early stages and fragile. An overwhelming majority of people surveyed found technological advancements, exclusive offers and customer loyalty perks attractive.
Overall, the pulse shows that when it comes to banking and financial services in Puerto Rico, service innovation (digital / technology) will net an increase in customer loyalty. There is much work to be done but also clear opportunities, especially for the Cooperativas that could result in benefits and growth among the younger consumer groups.
Despite what the news headlines shout every day, the market is ready to embrace change and consumers still have faith in financial institutions as well as in the products and services these offer to help make their lives easier.
