90% of South African youth want banks to provide them with more financial education. This is according to a survey conducted by market insights agency Brands Laduma, which was a first of its kind.
The survey was conducted on youth between the ages of 18-34 years. 44% of the 18-24 age groups showed an inclination towards using their peer and family groups to assess available financial products. The 25-34 groups showed a greater financial awareness.
The need to equip people to make good financial decisions made even more sense as people got older, says Brands Laduma research manager Piet Geustyn, since up to 50% of people older than 35 years regularly used credit to buy necessaries like food and clothes to support their families.
While there are more ways for people to access their bank accounts digitally, up to 57% of the surveyed people preferred direct contact with another person when finding out about new financial product, or expanding financial education.
“We conducted the research right across the country amongst our community members who have mobile and online access. The 18-question survey took just five minutes to complete and we saw very good participation rates for this kind of exercise, with an 88,3% completion rate,” says Geustyn.
The survey also showed that the youth who are both digitally savvy and as up to date as their first world counter parts still rely on traditional community support. Community ties in with financial responsibility and the responsibilities extend as they age. The youth often have to contribute financially to help out their families. This sometimes results in a reliance on short term loans which contributes to their debt burden.
“Our survey shows the tremendous amount of financial pressure that young people especially are under,” says Brands Laduma CEO Peter du Toit. “They know this, and will naturally bank with the financial institution that is willing to help them manage their money as best they can. It’s a wake-up call for banks. People want education, not just flashy advertising.”
Youth want to be educated not advertised to about banking
90% of South African youth want banks to provide them with more financial education. This is according to a survey conducted by market insights agency Brands Laduma, which was a first of its kind.
The survey was conducted on youth between the ages of 18-34 years. 44% of the 18-24 age groups showed an inclination towards using their peer and family groups to assess available financial products. The 25-34 groups showed a greater financial awareness.
The need to equip people to make good financial decisions made even more sense as people got older, says Brands Laduma research manager Piet Geustyn, since up to 50% of people older than 35 years regularly used credit to buy necessaries like food and clothes to support their families.
While there are more ways for people to access their bank accounts digitally, up to 57% of the surveyed people preferred direct contact with another person when finding out about new financial product, or expanding financial education.
“We conducted the research right across the country amongst our community members who have mobile and online access. The 18-question survey took just five minutes to complete and we saw very good participation rates for this kind of exercise, with an 88,3% completion rate,” says Geustyn.
The survey also showed that the youth who are both digitally savvy and as up to date as their first world counter parts still rely on traditional community support. Community ties in with financial responsibility and the responsibilities extend as they age. The youth often have to contribute financially to help out their families. This sometimes results in a reliance on short term loans which contributes to their debt burden.
“Our survey shows the tremendous amount of financial pressure that young people especially are under,” says Brands Laduma CEO Peter du Toit. “They know this, and will naturally bank with the financial institution that is willing to help them manage their money as best they can. It’s a wake-up call for banks. People want education, not just flashy advertising.”
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