YOUTH AND MONEY: BYE BYE PIGGY BANKS
Young people were the hardest hit in financial terms by the COVID-19 crisis: 61% experienced a loss in revenue and over half experienced anxiety over their debt levels. It’s a dark picture, yet one that seemingly hasn’t dulled their youthful optimism.
As inheritors of the 2008 financial crisis, young people agree on one thing: the importance of financial resiliency. Though they are the least financially literate group, they’re also the group that shows the strongest desire to learn more.
This quest for financial security is something they share with the older generation. But the road they’re taking to get there, which lies somewhere between creative problem-solving and a taste for more risk, puts them at the opposite end of traditional financial strategies!
AUTONOMY AND THE BANKING REVOLUTION
As users of online and self-learning tools, young adults massively invested in online trading
And their presence on the stock market hasn’t gone unnoticed! As testified by the meme stockphenomenon, he upsurge in certain fetishized stocks is fed by huge online communities. Cryptocurrency, another colossal market driven by young people, surpassed $3 trillion in assets last month.
These potentially lucrative yet volatile assets reflect a common desire for early retirement (embodied by the FIRE movement) . . . though at the risk of losing their shirts!
BANKING AND FINANCIAL INDUSTRY
CHANGES ARE SWEEPING THROUGH THE MARKET
Since 2020, the use of cloud-based financial services has surged. Consumers have learned how to avoid having to visit to branches in person. When it comes to payments, contactless has become the norm and is now used for 62% of all transactions in Quebec. Quebecers have returned in large numbers to negotiating major transactions in person (such as developing a financial plan or for mortgage financing). On the other hand, the use of online tools for everyday needs seems to have become a permanent part of our habits.
If online financial services have gained a lot of traction, it’s particularly thanks to disruptive solutions developed by new companies A multitude of players are revolutionizing the sector, offering 100% cloud-based alternatives and reduced management fees.
While these “neobanks” are thriving in various places around the world, here in Quebec the regulatory framework is holding back the development of this market. And not just a little: Compared to the rest of North America, Quebec is the province with the strictest banking regulations.
OVERTHROWING TRADITIONAL BANKING INSTITUTIONS
Forced to keep up with the times, traditional banks are having to buckle down to stay competitive, particularly amongst younger consumers. Strategic investments in artificial intelligence and exploring solutions making use of the blockchain are some of the avenues being explored.
Some are taking things even further, like U.S. firm BNY Mellon, the first bank in the world to start managing cryptocurrency assets.
In short, the entire industry is in turmoil!
DIGITAL AUDIO IS WINNING QUEBECERS’ HEARTS, AND EARS
Digital audio (such as streaming audio and podcasts) is occupying an increasing share of the media landscape. Over one in four Quebecers now listen to podcasts.
And this is just the beginning! In this province, where listenership remains lower than the Canadian average, the digital audio market still has some great opportunities for growth.
ADVERTISERS ARE SEEING THE POTENTIAL
An increase in the options available as well as in consumption is provoking growing interest amongst advertisers. In fact, this year, investments have reached the critical mass needed to trigger measurement and reporting by the Interactive Advertising Bureau of Canada (IAB Canada).
THERE ARE STILL MANY CHALLENGES AHEAD!
Within this fractured universe spread over many platforms, one of the main issues facing digital audio is discoverability.
As consumers display an increasing desire to disconnect from their screens, digital audio is presenting itself as a great alternative for unplugging, having fun, and staying informed. And things are also advancing in terms of metrics: Numeris is tackling the deployment of an analytics solution for listenership on the major platforms. Definitely a trend to keep track of!
MAKING UP FOR LOST TIME, 2021-STYLE!
After the half-hearted festivities of 2020–21, Quebecers once again feel like celebrating: Over half state that the coming holiday celebrations will be bigger than last year’s. This enthusiasm is reflected in their consumption intentions.
LEAVING ROOM FOR THE JOY OF FOOD!
This year, more than one Canadian in three will be hosting a holiday meal and an overwhelming majority intend to prepare their own dishes with ingredients bought in-store. In the same vein, Quebecers will be honouring their reputation as gourmet consumers by devoting a larger share of their budgets to food and drink for the holidays. Cheers!
TIME TO GO BACK SHOPPING IN-PERSON, EXCEPT…
More relaxed pandemic restrictions mean more in-person shopping: 63% of consumers plan to do their holiday shopping in-store, which is almost a return to the pre-pandemic level.
But despite appearances, the dynamic of the consumer journey has likely undergone a permanent change For example, for the second year in a row, Amazon is cited by Canadians as their first source of inspiration for gifts, ahead of cruising the shops.
And since nothing in 2021 will be like it was before . . . given an announced shortage of Christmas trees, be prepared to get creative when it comes to putting up decorations!
Happy holiday preparations!