The well-known social network Reddit has been the object of a study by the Economic Intelligence Unit (EIU) to find out what people are most interested in when it comes to banking and finance.
The EIU study
Instead of resorting to traditional survey methods, the EIU investigated Reddit’s posts in around 10 million conversations in forums on personal finance and banking information, where results were quite favorable for Fintech companies and discouraging for traditional banking.
Within the conversations studied, only 18% directly mentioned banks. The most popular topic was credit cards, with approximately 36% mentions. This was followed by the issue of technology and cryptocurrencies with approximately 21%. For its part, the issue of investments and fraud risks occupied approximately 20%. The rest of the topics were associated with more general things such as financial advice and specific uses of technology.
What do these results suggest to us?
For the EIU, this could be seen from two perspectives: traditional banks now have more areas in which they can help their clients, or the second: clients feel that they are finding better services and more opportunities to manage their personal finances abroad of traditional banking, which is good news for Fintech companies.
Traditional banks vs. “challenging” Banks
The “challenger banks” (next generation) have become very popular because they use technology to offer better solutions to customers, compared to “traditional banks,” which include online platforms, budgeting tools, and investment platforms (all at low cost). For their part, traditional banks continue to be associated with trust and credibility models, and their best results come from their loyalty and profit programs.
However, this far from being an advantage for “challenging banks” becomes a commitment, since we are currently in an era where technology allows us to do everything that the imagination is capable of conceiving, so, in the words of Max Chuard, “It’s a once-in-a-generation opportunity to deliver safe and satisfying customer experiences and drive growth for banks.”
What do you think about this topic? Do you think Reddit is a suitable source for this type of study?
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