Social media data reveals consumer insights for brands and institutions in the financial services and fintech markets
BOSTON–(BUSINESS WIRE)–Crimson Hexagon, the leading provider of AI-powered consumer insights, today announced the release of its Consumer Trends Report: Financial Services Industry, covering financial services, fintech and insurance companies. The report offers deeper unfiltered access into the mind of the consumer, and reveals consumer sentiment, emotions and reactions about key financial service institutions and brands – like Bank of America, Chase, Visa and MasterCard. The report also highlights the growth on the disruptive fintech market and topics like bitcoin and computer-generated investment.
“How do consumers feel about banks and financial institutions?”
The financial industry has dealt with disgruntled consumers for years, and consumer dissatisfaction is growing, as the report data shows that people are seemingly infuriated by the lack of transparency in fees, miscommunication and long wait times on the phone. Consumers place convenience, security and good customer service at the top of what they value from the financial services industry. The recent rise of services like virtual wallets, mobile apps and direct pay are appreciated, as indicated by the amount of disruption the fintech market has caused within the overall financial services industry. In fact, the fintech discussion (including topics like big data, Bitcoin, blockchain and digital banking) on social media has grown 5,700 percent over the past seven years (from 3,000 posts in 2010 to 174,000 posts in 2017).
Drawing on its data repository of more than 1 trillion social media posts and online consumer conversations, the report analyzes commentary, preferences and opinions to address questions financial industry professionals are struggling to answer, such as, “What fintech trends do consumers care about?” and “How do consumers feel about banks and financial institutions?” The report helps answer these questions and uncovers trends in a variety of industries and include the following:
- Commercial banks: Bank of America leads the share of voice conversation followed by Chase, Wells Fargo and Citibank. Conversations surrounding both Bank of America and Citibank have a 66 percent negative sentiment and 34 percent positive. Chase had the most negative sentiment at 71 percent.
- Credit cards: Consumers expressed joy and relief over paying off credit card debts, but are disgruntled at the debt systems. Although Visa has the highest share of voice among credit card brands (48 percent), it garnered the most negative sentiment from consumers (75 percent).
- Bitcoin: With post volume increasing by more than 4 million from 2016 to 2017, 2017 has been the most eventful year for Bitcoin discussions. Cryptocurrency had the most share of voice, almost 80 percent of the entire conversation. Most conversations discussed Bitcoin’s fluctuating prices, its performances and the best times to buy.
- Robo-advisors : On social media, the robo-advisory conversation is mainly focused on two brands: Wealthfront and Betterment. The dialogue is mostly informational and educative.
- Insurance: The majority of the insurance conversation revolves around consumer frustration over the process of getting insurance, expensive schemes and hidden costs. MetLife takes the lead in share of voice among insurance companies (60 percent), followed by American International Group (18 percent) and Prudential Financial (17 percent).
With financial illiteracy costing Americans an average of more than $1,100 in 2017 and the financial industry valued at approximately 10 percent of the gross domestic product, the overall industry cannot afford to remain in the dark when it comes to learning about consumers’ preferences, behaviors and opinions. From educating customers on how to invest and manage credit card debt, to identifying emerging trends and opportunities in the industry, consumer insights garnered through social media data can help financial institutions and brands sell more of their services and improve customer experiences.
“Money and finances are sensitive subjects for consumers, but thanks to the growth of social media platforms and the fact that consumers are candidly sharing their experiences and desires over these platforms every day, we’re able to provide the financial services industry with the most transparent consumer data,” said Stephanie Newby, CEO of Crimson Hexagon. “Consumer confidence has always been a leading indicator, but its availability at scale through social media makes it even more powerful today as a predictor of trends. Our report, which uses AI-powered consumer insights, will support strategic decision-making in many areas of the industry.”
Crimson Hexagon’s financial report is available for free download here.