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Black Consumer Project Wave 2 - Finance + Banking

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Black Consumer Project is an in-depth multi-wave study of the economic and cultural contributions of Black Americans. This community has more buying power than ever, and our goal is to uncover the unique perspectives, behaviors, and preferences of Black and African American consumers. The second wave of the Black Consumer Project explores banking behaviors, financial perceptions and aspirations for the future.

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BLACK CONSUMER SURVEY B L A C K C O N S U M E R P R OJ E C T 1 WAVE 2 - FINANCE + BANKING SPRING 2022
Background The Black Consumer Project About the Creators Methodology Black America At-a-Glance Executive Summary Black Banking The Black Millennial FWD Momentum Smart Marketing Moves Appendix 2 TABLE OF CONTENTS_ 3 4 5 6 7 8 20 28 37 44 2
Black Consumer Project is an in-depth, multi-wave study of the economic and cultural contributions of Black Americans. This community has more buying power than ever, and our goal is to uncover the unique perspectives, behaviors, and preferences of Black and African-American consumers. PROJECT OVERVIEW_ 3 Wave 1 The first wave explored core values, personal goals, layers of identity and definitions of success. Wave 2 This second wave explores banking behaviors, financial perceptions and aspirations for the future. WAVE 2 - FINANCE + BANKING
Quantasy + Associates is a full-service marketing agency that builds brands by pushing culture in the right direction. We operate at the intersection of Advertising + Content, Solutions + Strategies, Platforms + Technology, and Influence + Talent. For over a decade, our work has driven incremental revenue, equity, and influence for some of the world’s most iconic brands. ThinkNow is a technology-driven consumer market research company that focuses on uncovering Hispanic, Asian, and African-American consumer insights as well as Total Market insights that require multicultural expertise. We’re focused on culturally diverse consumers because half the children born in the U.S. each year are multicultural and this trend will accelerate. 4 ABOUT US_ 4 WAVE 2 - FINANCE + BANKING
FIELD DATE SURVEY METHOD SCREENING CRITERIA BASE SIZES 03/31/2022 - 04/17/2022 Online Blacks n=1,050 Non-Blacks n=500 18+ years of age Self-identified as Black/ African American METHODOLOGY_ 5 WAVE 2 - FINANCE + BANKING
INCREASING INFLUENCE GEOGRAPHIC DISTRIBUTION The median age of Black Americans is 32—six years younger than the national median age. More than 1 out of every 3 Black Americans is under the age of 22. As they enter their peak earning years, they’ll play a key role in reshaping our economy, forcing companies to reexamine how they do business. 2020 U.S. Census; Pew Research Center, 2019 American Community Survey; Nielsen, The Power of the Black Community, 2020; Selig Center for Economic Growth, June 2021 HOUSEHOLD INCOME Gen Alpha Gen Z Millennial Gen X Baby Boomer Silent / Greatest 6M 9M 12M 3M 10% 25% 23% 19% 18% 5% 10% 56% 17% 17% GENERATIONAL DISTRIBUTION Although the majority are descendants of slavery, there is an increasing number of foreign-born and descendants of immigrants. The Black population has risen in the U.S., but there has been a more dramatic increase among the foreign born. As of 2019, they make up 10% of the Black population, which is a 90% increase since 2000. Most foreign-born are Caribbean and over 1M identify as Afro-Latino. MEDIAN AGE COUNTRY OF ORIGIN According to the 2020 Census, the Black population has increased by 5.6% over the past decade. Those who identify as Black in combination with another race group increased by 88.7%. With a population of 46.9 Million, Black Americans also wield an impressive $1.4T in buying power. The median HHI for Black Americans was $44,000 in 2019, meaning just under half of all households (46%) were earning more than $50,000 a year. Those earning more than $100,000 represent 18% of the overall Black population. Education has increased significantly as well with the population of those with a bachelor’s degree (23%), doubling since 2010. BLACK AMERICA AT-A-GLANCE SNAPSHOT_ 6 WAVE 2 - FINANCE + BANKING
When we launched the Black Consumer Project in the Fall of 2021, we set out to tell the story of Black Americans. This is a story rooted in a legacy of Black excellence and fueled by a new generation of innovators, entrepreneurs and thought-leaders. What we uncovered was an incredibly diverse set of interests, experiences and beliefs that not only shift and shape the Black community, but have a ripple effect on all communities. 7 WAVE 2 - FINANCE + BANKING EXECUTIVE SUMMARY_ Despite centuries of challenges and setbacks, Black Americans continue to rise, thrive and evolve. In our Wave 1 report, we explored their deep connections to ethnicity & culture, American identity, and family. We discovered their definition of success isn’t tied to money. Living a healthy lifestyle, owning a business, and giving back to the community are over indexing factors of success compared to non-Black ethnic groups. In this second wave, we dive deeper into the relationship between the Black community and finance to better understand current behaviors and aspirations for their financial futures. This report features 4 key chapters: 1. Black Banking 2. The Black Millennial 3. FWD Momentum 4. Smart Marketing Moves
8 NARRATIVE #1 BLACK BANKING WAVE 2 - FINANCE + BANKING
For decades, research has painted a picture of a Black America that is distrustful of the financial system, hesitant to adopt banking services, and resistant to guidance. While economic disparities and trust deficits exist, banking habits in the Black community are incredibly diverse. In this chapter, we’ll take a look at how Black Americans are managing money today. THE CULTURE OF MONEY 9 BLACK BANKING | EXECUTIVE SUMMARY_ WAVE 2 - FINANCE + BANKING
Q1_014. Please select the point in the scale that describes how much you agree or disagree with each statement below. I don’t believe in keeping my money in traditional bank account. (Any Agree) BLACK BANKING | TRADITIONAL V NEW AGE_ 10 18-24 25-39 40-54 55 I don’t believe in keeping my money in a traditional bank 29% 31% 21% 13% While Black Americans are more likely to believe their money does not belong in a traditional banking account, the majority do still believe in the banking system: 57% of Black Americans do believe in keeping their money in a traditional bank account. WAVE 2 - FINANCE + BANKING 16% Non-Black 23% Black +
Q16. Which of these types of accounts or investments do you currently own? 11 BLACK BANKING | INVESTMENTS_ WHILE BLACK AMERICANS OWN CHECKING & SAVINGS PRODUCTS AT THE SAME RATE AS NON-BLACK, THEY LAG IN TRADITIONAL INVESTMENT ACCOUNTS. At 82% versus 68%, Foreign-born Black Americans are significantly more likely than U.S.-born to have savings accounts. 1. 47% of Black Americans who have accounts with trading services or brokers are Robinhood clients compared to 24% of non-Black Americans. 2. WAVE 2 - FINANCE + BANKING Investment Type Black Non-Black Checking Account 85% 87% Savings Account 69% 69% CD 5% 10% Company 401K 15% 23% Mutual Funds 7% 13% IRA 12% 25% Individual Stock Trading Account 11% 15% Real Estate Rental Property 5% 6% Bonds 5% 7% Gold | Precious Metals 2% 2% College Savings Account (e.g. 529) 4% 4%
W A V E 1 - I D E N T I T Y + V A L U E S 12 Q14. Which of the following are important to you when choosing a banking/financial service? WAVE 2 - FINANCE + BANKING BLACK BANKING | BANKING CONSIDERATIONS_ Has excellent customer service Makes banking easy/convenient Has easy to use mobile banking features Has convenient branch locations Cares about the Black/African American community Provides tools to help me manage my money Helps me understand financial topics Caters to young people 8% 18% 22% 9% 46% 31% 39% 45% 12% 27% 29% 35% 35% 36% 44% 47% Blacks Non-Blacks 55+: 44% Black women: 40% 18-24: 35% 25-39: 33% 40-54: 26% 55+: 25% 18-24: 33% 25-39: 16% 40-54: 9% 55+: 2% WHEN IT COMES TO CHOOSING A BANK, CUSTOMER SERVICE IS THE NUMBER ONE IMPORTANT FACTOR FOR BLACK AMERICANS. While convenience is still important, having people present who can provide excellent service and trusted guidance is critical.
13 Q9. With what type of bank(s) do you have account(s) with? BLACK BANKING | TRADITIONAL V NEW AGE_ BLACK AMERICANS ARE LESS LIKELY TO USE A TRADITIONAL BANK ACCOUNT AND MORE LIKELY TO BANK WITH A DIGITAL BANK. Black foreign-born customers are more likely to have a traditional bank account than Black U.S.-born (78% v 66%). Black men are more likely to have a relationship with a digital bank than women (48 v 38%). Traditional, brick-and-mortar bank (BofA, Wells Fargo, Chase, Citi, etc.) Digital/Online bank (Capital One, Discover Bank, Ally, etc.) Credit Union (local, Navy Federal, etc.) Financial technology companies (Chime, SoFi, etc.) 0% 5% 31% 79% 1% 5% 43% 67% Blacks Non-Blacks 55+: 72% Men: 3% Women: 7% 18-24: 54% 25-39: 54% 40-54: 44% 55+: 24% WAVE 2 - FINANCE + BANKING
BLACK BANKING | DEFINING WEALTH_ 14 Q3_OE. Having wealth can mean different things to different people. What does being "wealthy" mean to you personally? WAVE 2 - FINANCE + BANKING - 30 yr old Black female from the South To me wealth means having enough money to live comfortably enough to get through life and its unexpected moments…” “
BLACK BANKING | SAVINGS_ 15 Q29. Approximately how much money are you able to save in total every month, if at all? WAVE 2 - FINANCE + BANKING 18-24 25-39 40-54 55+’ I’m not able to save money 15% 22% 26% 16% Adults age 40-54 were more likely to say that they’re not able to save any money at all each month. Similarly, Black women were more likely to struggle saving each month than Black men. Women 29% 15% Men “I am not able to save money”
W A V E 1 - I D E N T I T Y + V A L U E S 16 Q30. If you needed $500 in cash today for an unforeseen expense or emergency, where would you most likely get those funds from? WAVE 2 - FINANCE + BANKING BLACK BANKING | FINANCIAL EMERGENCY_ Bank account Cash I keep on hand Sibling Parent Son/Daughter Other relative (grandparent, aunt/uncle) Friend Payday loan/Cash advance service I would sell something of value (jewelry, vehicle, etc.) Retirement account (401K) Not sure 9% 4% 10% 5% 5% 3% 3% 14% 7% 17% 44% 15% 4% 10% 10% 9% 7% 6% 16% 9% 21% 35% Blacks Non-Blacks 47% 32% 55+: 43% IF $500 WAS NEEDED FOR AN UNFORESEEN EXPENSE, MOST BLACK AMERICANS TURN TO FAMILY & FRIENDS. Black foreign born are more likely than Black US born to have a bank account (48% v 34%) and less likely to keep cash on hand. 1. The South indexed higher for spouse/significant other and the Midwest indexed higher for other relatives (grandparents, aunt/uncle). 2. 18-24: 12% 25-39: 13% 40-54: 12% 55+: 4% <$30K: 17% $30-59K: 20% $60-99K: 38% $100K+: 33%
BLACK BANKING | RETIREMENT_ 17 Q2. You indicated earlier that you are actively saving for retirement. Why is that? Out of all the reasons Black Americans are saving for retirement, they’re more likely to be saving to support their families. We found in Wave 1 that raising a family is highly important and a definition of success was centered around the ability to take care of one’s family. 18-24 25-39 40-54 55+’ I want to live comfortably/ without worry 53% 69% 70% 70% I want to be able to enjoy my retirement (e.g. travel) 51% 57% 65% 67% Social security is not enough 13% 31% 43% 60% I don’t want to burden my family/children after I retire 46% 40% 40% 54% Even when I’m, retired, I will have family/children to support 26% 30% 18% 17% WAVE 2 - FINANCE + BANKING Black 23% 16% Non-Black “Even when I’m retired, I will have family/children to support”
BLACK BANKING | DEFINING WEALTH_ 18 Q3. Having wealth can mean different things to different people. What does being "wealthy" mean to you personally? WAVE 2 - FINANCE + BANKING - 31 yr old Black male from the Midwest Wealth means healthy, strong state of mind, community involvement, giving back to the inner cities and building businesses that create jobs for our future generations…” “
BLACK BANKING | BLACK OWNED_ 19 Q13. You indicated earlier that you are African-American/Black. How interested are you in banking with a Black-owned bank or a bank that serves Black communities? (Any Agree) While Black Americans overall have indicated that they’re more likely to be interested in banking with a Black- owned bank, Black millennials are significantly more likely to be interested. This interest also increases with income. WAVE 2 - FINANCE + BANKING Non-Black Millennials across all ethnic segments are significantly more interested in banking with a Black-owned bank. 71% of Black households earning over $100K annually are interested in banking with a Black-owned bank. 70% of Afro-Latinos are interested in banking with Black-owned or Black serving banks. 18-24 25-39 40-54 55+’ Black Non-Black Black-Owned Bank 54% 69% 63% 64% 64% 29% Bank that primarily serves Black communities 52% 65% 63% 58% 61% 26% 1. 2. 3.
20 NARRATIVE #2 THE BLACK MILLENNIAL WAVE 2 - FINANCE + BANKING
WAVE 2 - FINANCE + BANKING MONEY MY WAY 21 THE BLACK MILLENNIAL | EXECUTIVE SUMMARY_ This section is dedicated to Black Millennials and their unique approaches to navigating money. Seemingly more savvy than previous generations, they maintain an optimism that keeps them actively searching for solutions and products that fit their lifestyle. They apply what works from a traditional perspective, but they also incorporate new solutions that streamline banking and potentially accelerate opportunities for growth. It’s imperative to keep your eyes on this group because they influence both older and younger generations.
THE BLACK MILLENNIAL | GOALS_ 22 WAVE 2 - FINANCE + BANKING BLACK MILLENNIALS CITE BEING WEALTHY AS ONE OF THEIR GOALS IN LIFE Q1. Being wealthy is one of my goals in life (Completely Agree) 45% 48 % 37% 16% 18-24 25-39 40-54 55+
BLACK BANKING | DEFINING WEALTH_ 23 Q3. Having wealth can mean different things to different people. What does being "wealthy" mean to you personally? - 35 yr old Black Woman from the Northeast Being wealthy means having enough money to live comfortably and retire early.” WAVE 2 - FINANCE + BANKING “
1 OUT OF 3 BLACK MILLENNIALS ARE TEACHING THEMSELVES THE BEST WAY TO MANAGE THEIR FINANCES. All Ages 18-24 25-39 40-54 55+’ BLACK 31% 33% 35% 29% 29% NON-BLACK 21% 14% 27% 20% 18% 24 THE BLACK MILLENNIAL | ON THEIR OWN_ Q1_011. Please select the point in the scale that describes how much you agree or disagree with each statement below. I had to learn about finances on my own. (Completely Agree) 42% of Black Americans who earn more than $100K a year had to learn about finances on their own. Black Americans who live in the Northeast are more likely to have been self-taught than those in other regions. 1. 2. WAVE 2 - FINANCE + BANKING I had to learn about finances on my own
25 THE BLACK MILLENNIAL | WHAT’S IMPORTANT TO US_ It is very important to me that I have a good credit score I tend to pay my credit cards(s) off in full each month I have enough money saved for a rainy day I am actively saving for my retirement 63% 42% 51% 84% 52% 37% 44% 81% All Blacks Black Millennials <$30K: 75% $30-$59K: 83% $60-$99K: 90% $100K+: 91% Q1. Please select the point in the scale that describes how much you agree or disagree with each statement below. (Any Agree) Women: 38% Men: 51% US Born: 43% Foreign Born: 55% 18-24: 42% 40-54: 33% 55+: 34% Non-Black 25-39: 60% WAVE 2 - FINANCE + BANKING WHEN COMPARED TO OLDER GENERATIONS, BLACK MILLENNIALS ARE DEMONSTRATING MORE SAVVY FINANCIAL PERCEPTIONS AND BEHAVIORS.
My Bank Google Search YouTube Social Media Financial Advisors Spouse Money-Related Website Podcasts I don’t seek out advice BLACK 25% 25% 25% 6% 23% 13% 23% 9% 21% NON-BLACK 20% 21% 16% 2% 26% 22% 22% 7% 19% BLACK 25-39 26% 35% 40% 10% 24% 16% 26% 13% 10% 26 THE BLACK MILLENNIAL | SOURCES OF GUIDANCE_ Q7. Where do you seek out advice about money and/or building wealth? ALTHOUGH BLACK MILLENNIALS TURN TO THEIR BANKS WHEN THEY NEED ADVICE OR GUIDANCE ABOUT MANAGING MONEY OR BUILDING WEALTH MORE THAN NON-BLACK AMERICANS, THEY MORE OFTEN TURN TO GOOGLE SEARCH AND YOUTUBE. WAVE 2 - FINANCE + BANKING
W A V E 1 - I D E N T I T Y + V A L U E S 27 95% OF BLACK MILLENNIALS ARE USING MONEY TRANSFER AND PAYMENT SERVICES AT SIGNIFICANTLY HIGHER RATES. Q22. Which money transfer services do you use, if any? WAVE 2 - FINANCE + BANKING FWD MOMENTUM | SOURCES OF WEALTH PayPal Cash App Zelle Venmo Google Pay Western Union Other None 5% 3% 16% 20% 28% 38% 68% 73% 11% 4% 17% 14% 21% 32% 55% 64% 23% 2% 9% 10% 25% 24% 21% 59% Non-Black Black Black Millennial Foreign born: 56% US born: 29% 55+: 23%
28 NARRATIVE #3 FWD MOMENTUM WAVE 2 - FINANCE + BANKING
29 FWD MOMENTUM | EXECUTIVE SUMMARY_ Black Americans have always lived in a racially biased America. This inequality shows up in numerous ways including an exponentially increasing wealth gap and inequitable access to opportunity. Still, the Black community continues to push forward with unwavering optimism and focus on building wealth not just for themselves, but for the generations to come. In this chapter, we’ll take a look at how Black Americans are preparing for the future. FUTURE FOCUSED WAVE 2 - FINANCE + BANKING 29
FWD MOMENTUM | YES WE CAN_ 30 Q5. If you have long-term financial goals, how likely do you think it is that you will obtain these goals? 18-24 25-39 40-54 55+’ Very Likely or Somewhat Likely 74% 73% 62% 52% While Black Americans are more likely than non- Black to believe they will obtain their goals in the future, 64% vs 55%, the younger generations and foreign born are much more likely, respectively. Black men also indexed a bit higher than women at 67% vs 61%, respectively. WAVE 2 - FINANCE + BANKING Foreign Born 74% 63% US Born “I believe it is likely I will obtain my goals”
W A V E 1 - I D E N T I T Y + V A L U E S 31 BLACK AMERICANS ARE 2X MORE LIKELY TO BELIEVE THAT THE MAJORITY OF THE WEALTH THEY WILL ACCUMULATE OVER THEIR LIFETIME WILL COME FROM THEIR OWN BUSINESS. Q31. Thinking about all the income/wealth that you will accumulate over your lifetime, where do you think most of that income/wealth will come from? My Job or Career Investments The Business I own My Side or Micro Business An Inheritance Rental Income Other Not Sure | Prefer not to answer 18% 11% 8% 11% 12% 15% 25% 54% WAVE 2 - FINANCE + BANKING 23% 18-24: 24% Men: 32% Women: 19% FWD MOMENTUM | SOURCES OF WEALTH_ * Respondents were allowed to select more than one response. *
FWD MOMENTUM | GENERATIONAL AFFLUENCE_ 32 Q4. When it comes to personal finances, how do you think you’re doing compared to your parents? 18-24 25-39 40-54 55+’ 33% 46% 43% 50% Black Millennials, Baby Boomers and Foreign born are more likely to believe they’re doing better off compared to their parents. The more affluent they are, the more likely they believe they’re better off than their parents. 1. 18-24 are less likely to believe they’re better off than their parents. 2. WAVE 2 - FINANCE + BANKING Foreign Born 55% 44% US Born
33 18% 40-54 33% 25-39 6% 55+ 32% 18-24 Q21. Do you use a “personal finance” app to help you manage your money? FWD MOMENTUM | MONEY MANAGEMENT_ WAVE 2 - FINANCE + BANKING 21% Black 12% White Black Americans are more likely to use a personal finance app to help them manage their finances. This is especially true for Gen Z, Millennials, and households earning more than $100K a year.
34 Black Americans are using ‘Buy Now, Pay Later’ apps more than other segments and they are using Afterpay significantly more than other services. Q23. Have you used a 'Buy Now, Pay later' app in the past 12 months? Q24. Which ones? FWD MOMENTUM | BUY NOW, PAY LATER_ 18-24 25-39 40-54 55+’ Black Non-Black Yes 29% 35% 21% 15% 25% 19% No 71% 65% 79% 85% 75% 81% Afterpay Paypal pay in 4 Klarna Affirm Sezzle 14% 46% 35% 44% 41% 16% 29% 42% 44% 52% Blacks Non-Blacks WAVE 2 - FINANCE + BANKING *based on those who have a ‘buy now pay later’ app
35 Q16. Which of these types of accounts or investments do you currently own, if any? WHILE THEY TRAIL OTHER ETHNIC SEGMENTS IN TRADITIONAL INVESTMENTS, BLACK AMERICANS ARE INVESTING IN EMERGING PRODUCTS AT THE SAME RATE. Despite their relatively young age, 19% of 18-24 year old Black Americans are already investing in cryptocurrency. FWD MOMENTUM | INVESTMENT OWNERSHIP_ Cryptocurrency NFTs of Blacks and non-blacks are investing in cryptocurrency of Blacks and non-blacks are investing in NFTs 13% 4% WAVE 2 - FINANCE + BANKING
Stocks Cryptocurrency Property Gold Bonds CD IRA NFT Virtual Land Metaverse Assets Other Not sure 21% 6% 3% 3% 6% 11% 15% 9% 12% 12% 14% 29% 20% 3% 4% 5% 11% 12% 12% 15% 18% 19% 22% 37% Black Non-Black 36 Q20. If you were given $1,000 today to invest, where would you most likely invest this money? FWD MOMENTUM | INVESTING MOVES_ WAVE 2 - FINANCE + BANKING 18-24: 20% 25-39: 29% 40-54: 28% 55+: 10% Men: 24% Women: 13% 55+: 24% WITH THE EXCEPTION OF STOCKS, BLACK AMERICANS WERE MOST LIKELY TO CHOOSE CRYPTOCURRENCY AS THE MOST LIKELY PLACE TO INVEST $1000.
37 SMART MARKETING MOVES WAVE 2 - FINANCE + BANKING NARRATIVE #4
SMART MARKETING MOVES | SEEKING ADVICE_ 38 Q8. What is your most trusted source for advice about money and/or building wealth? WAVE 2 - FINANCE + BANKING My Family Financial Advisor Money related sites YouTube Google Search My bank I don't seek out advice 19% 7% 5% 5% 7% 18% 30% 21% 10% 7% 8% 9% 13% 23% Blacks Non-Blacks 18-24: 12% 25-39: 10% 40-54: 23% 55+: 33% <$30K: 7% $30-59K: 9% $60-99K: 22% $100K+: 30% As Black Americans age, they become more open to more traditional banking solutions, especially financial advisors. WHILE YOUNGER SEGMENTS ARE MORE INCLINED TO SEEK ADVICE FROM FAMILY AND/ OR YOUTUBE, OLDER SEGMENTS SEEK ADVICE FROM THEIR BANKS & FINANCIAL ADVISORS. 18-24: 36% 18-24: 15% 25-39: 14% 40-54: 4% 55+: 2%
SMART MARKETING MOVES | ONLINE V IRL_ 39 Q1. Please select the point in the scale that describes how much you agree or disagree with each statement below. Banking online or via mobile is not personal enough for me (Any agree) 27% Women Black Americans are more likely than any other segment to believe online or mobile banking is not personal enough for them. Black men even more than Black women. WAVE 2 - FINANCE + BANKING 36% Men
SMART MARKETING MOVES | BANKING METHODS_ 40 Q15. When you need to make a bank transaction, such as making a deposit or paying a bill through your bank account, what method(s) are you most likely to use? 18-24 25-39 40-54 55+’ Black Non-Black App(s) via smartphone 49% 64% 43% 28% 47% 43% Online via computer 31% 39% 42% 40% 39% 41% ATM 38% 38% 39% 28% 35% 26% In-person 43% 44% 50% 55% 49% 45% Telephone 24% 24% 19% 14% 20% 11% WAVE 2 - FINANCE + BANKING Black Americans are on par with other segments when it comes to making a bank transaction via smartphone apps and are likely to utilize them as well as pay in person. ATM usage is also significantly higher for Black Americans. 40
SMART MARKETING MOVES | SENTIMENTS ON BANKS_ 41 Q12. How important is it to you to bank with a traditional, brick-and-mortar bank (B of A, Wells Fargo, Chase, Citi, etc.)? 18-24 25-39 40-54 55+’ Black Non-Black Top 2 (very or somewhat important) 45% 51% 56% 60% 54% 62% Neutral 32% 32% 25% 22% 27% 24% Bottom 2 (not very or not important at all) 23% 18% 19% 18% 19% 14% WAVE 2 - FINANCE + BANKING Older generations across segments find banking with a traditional, brick-and-mortar bank more important than younger generations.
LEVEL UP LITERACY MARKET TO MILLENNIALS While financial literacy is critical, many financial service providers leave a gap between budgeting basics and long-term growth strategies. Continue relationship building and helping your Black customers advance product ownership beyond deposits. SMALL BIZ SUCCESS 1 out of 4 Black Americans believe having their own business will create most of their wealth. This creates a huge opportunity for banks and other financial institutions to provide content and services tailored to help them turn a side hustle into a thriving business. CATER TO BLACK WOMEN Often the head of their households, Black women are are looking for tools to help manage money. Because they index lower than men across key indicators, focusing on Black women is a prime opportunity to gain their influential loyalty and trust. Despite facing disproportionately higher student loan debt and wage gaps at every socio-economic tier, Black Millennials are focused on building generational wealth. Savvy, optimistic and entrepreneurial at heart, even those on the older end of the spectrum have yet to reach their peak earning years. They quench their thirst for financial guidance with culturally-relevant content and position your brand as a true partner on their journey to success. 42 SMART MARKETING MOVES | TOP 4_ WAVE 2 - FINANCE + BANKING
APPENDIX 43 WAVE 2 - FINANCE + BANKING
WILL CAMPBELL MELANIE WILLIAMS ROY EDUARDO KOKOYACHUK Co-Founder and CEO Quantasy + Associates 44 CARLOS YANEZ SVP, Head of Strategy Quantasy + Associates Co-Founder and Principal ThinkNow CSVP, Custom Research ThinkNow OUR LEADERS_ WAVE 2 - FINANCE + BANKING
45 Blacks (A) Non-Blacks (B) Gender Male 47% 46% Female 53% 54% Age 18-24 12%B 7% 25-39 34% 32% 40-54 25% 24% 55+ 30% 38% A Born in U.S 91% 88% Race/Ethnicity Black, African American 100% -- Asian/Pacific Islander 1% 10% American Indian or Alaska Native 2% 3% White 2% 82% Hispanic 7% 20% (n=1050) (n=500) Blacks (A) Non-Blacks (B) Region Northeast 18% 18% Midwest 17% 20% South 56% B 36% West 9% 26% A Marital Status Single 45%B 27% Married or living with partner 38% 54%A Separated/divorced/widowed 16% 18% Employment Employed (net) 57%B 50% Retired 16% 25%A Household income Mean (in thousands) $36K $48.3K WAVE 2 - FINANCE + BANKING DEMOGRAPHICS_

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Black Consumer Project Wave 2 - Finance + Banking

  • 1. BLACK CONSUMER SURVEY B L A C K C O N S U M E R P R OJ E C T 1 WAVE 2 - FINANCE + BANKING SPRING 2022
  • 2. Background The Black Consumer Project About the Creators Methodology Black America At-a-Glance Executive Summary Black Banking The Black Millennial FWD Momentum Smart Marketing Moves Appendix 2 TABLE OF CONTENTS_ 3 4 5 6 7 8 20 28 37 44 2
  • 3. Black Consumer Project is an in-depth, multi-wave study of the economic and cultural contributions of Black Americans. This community has more buying power than ever, and our goal is to uncover the unique perspectives, behaviors, and preferences of Black and African-American consumers. PROJECT OVERVIEW_ 3 Wave 1 The first wave explored core values, personal goals, layers of identity and definitions of success. Wave 2 This second wave explores banking behaviors, financial perceptions and aspirations for the future. WAVE 2 - FINANCE + BANKING
  • 4. Quantasy + Associates is a full-service marketing agency that builds brands by pushing culture in the right direction. We operate at the intersection of Advertising + Content, Solutions + Strategies, Platforms + Technology, and Influence + Talent. For over a decade, our work has driven incremental revenue, equity, and influence for some of the world’s most iconic brands. ThinkNow is a technology-driven consumer market research company that focuses on uncovering Hispanic, Asian, and African-American consumer insights as well as Total Market insights that require multicultural expertise. We’re focused on culturally diverse consumers because half the children born in the U.S. each year are multicultural and this trend will accelerate. 4 ABOUT US_ 4 WAVE 2 - FINANCE + BANKING
  • 5. FIELD DATE SURVEY METHOD SCREENING CRITERIA BASE SIZES 03/31/2022 - 04/17/2022 Online Blacks n=1,050 Non-Blacks n=500 18+ years of age Self-identified as Black/ African American METHODOLOGY_ 5 WAVE 2 - FINANCE + BANKING
  • 6. INCREASING INFLUENCE GEOGRAPHIC DISTRIBUTION The median age of Black Americans is 32—six years younger than the national median age. More than 1 out of every 3 Black Americans is under the age of 22. As they enter their peak earning years, they’ll play a key role in reshaping our economy, forcing companies to reexamine how they do business. 2020 U.S. Census; Pew Research Center, 2019 American Community Survey; Nielsen, The Power of the Black Community, 2020; Selig Center for Economic Growth, June 2021 HOUSEHOLD INCOME Gen Alpha Gen Z Millennial Gen X Baby Boomer Silent / Greatest 6M 9M 12M 3M 10% 25% 23% 19% 18% 5% 10% 56% 17% 17% GENERATIONAL DISTRIBUTION Although the majority are descendants of slavery, there is an increasing number of foreign-born and descendants of immigrants. The Black population has risen in the U.S., but there has been a more dramatic increase among the foreign born. As of 2019, they make up 10% of the Black population, which is a 90% increase since 2000. Most foreign-born are Caribbean and over 1M identify as Afro-Latino. MEDIAN AGE COUNTRY OF ORIGIN According to the 2020 Census, the Black population has increased by 5.6% over the past decade. Those who identify as Black in combination with another race group increased by 88.7%. With a population of 46.9 Million, Black Americans also wield an impressive $1.4T in buying power. The median HHI for Black Americans was $44,000 in 2019, meaning just under half of all households (46%) were earning more than $50,000 a year. Those earning more than $100,000 represent 18% of the overall Black population. Education has increased significantly as well with the population of those with a bachelor’s degree (23%), doubling since 2010. BLACK AMERICA AT-A-GLANCE SNAPSHOT_ 6 WAVE 2 - FINANCE + BANKING
  • 7. When we launched the Black Consumer Project in the Fall of 2021, we set out to tell the story of Black Americans. This is a story rooted in a legacy of Black excellence and fueled by a new generation of innovators, entrepreneurs and thought-leaders. What we uncovered was an incredibly diverse set of interests, experiences and beliefs that not only shift and shape the Black community, but have a ripple effect on all communities. 7 WAVE 2 - FINANCE + BANKING EXECUTIVE SUMMARY_ Despite centuries of challenges and setbacks, Black Americans continue to rise, thrive and evolve. In our Wave 1 report, we explored their deep connections to ethnicity & culture, American identity, and family. We discovered their definition of success isn’t tied to money. Living a healthy lifestyle, owning a business, and giving back to the community are over indexing factors of success compared to non-Black ethnic groups. In this second wave, we dive deeper into the relationship between the Black community and finance to better understand current behaviors and aspirations for their financial futures. This report features 4 key chapters: 1. Black Banking 2. The Black Millennial 3. FWD Momentum 4. Smart Marketing Moves
  • 8. 8 NARRATIVE #1 BLACK BANKING WAVE 2 - FINANCE + BANKING
  • 9. For decades, research has painted a picture of a Black America that is distrustful of the financial system, hesitant to adopt banking services, and resistant to guidance. While economic disparities and trust deficits exist, banking habits in the Black community are incredibly diverse. In this chapter, we’ll take a look at how Black Americans are managing money today. THE CULTURE OF MONEY 9 BLACK BANKING | EXECUTIVE SUMMARY_ WAVE 2 - FINANCE + BANKING
  • 10. Q1_014. Please select the point in the scale that describes how much you agree or disagree with each statement below. I don’t believe in keeping my money in traditional bank account. (Any Agree) BLACK BANKING | TRADITIONAL V NEW AGE_ 10 18-24 25-39 40-54 55 I don’t believe in keeping my money in a traditional bank 29% 31% 21% 13% While Black Americans are more likely to believe their money does not belong in a traditional banking account, the majority do still believe in the banking system: 57% of Black Americans do believe in keeping their money in a traditional bank account. WAVE 2 - FINANCE + BANKING 16% Non-Black 23% Black +
  • 11. Q16. Which of these types of accounts or investments do you currently own? 11 BLACK BANKING | INVESTMENTS_ WHILE BLACK AMERICANS OWN CHECKING & SAVINGS PRODUCTS AT THE SAME RATE AS NON-BLACK, THEY LAG IN TRADITIONAL INVESTMENT ACCOUNTS. At 82% versus 68%, Foreign-born Black Americans are significantly more likely than U.S.-born to have savings accounts. 1. 47% of Black Americans who have accounts with trading services or brokers are Robinhood clients compared to 24% of non-Black Americans. 2. WAVE 2 - FINANCE + BANKING Investment Type Black Non-Black Checking Account 85% 87% Savings Account 69% 69% CD 5% 10% Company 401K 15% 23% Mutual Funds 7% 13% IRA 12% 25% Individual Stock Trading Account 11% 15% Real Estate Rental Property 5% 6% Bonds 5% 7% Gold | Precious Metals 2% 2% College Savings Account (e.g. 529) 4% 4%
  • 12. W A V E 1 - I D E N T I T Y + V A L U E S 12 Q14. Which of the following are important to you when choosing a banking/financial service? WAVE 2 - FINANCE + BANKING BLACK BANKING | BANKING CONSIDERATIONS_ Has excellent customer service Makes banking easy/convenient Has easy to use mobile banking features Has convenient branch locations Cares about the Black/African American community Provides tools to help me manage my money Helps me understand financial topics Caters to young people 8% 18% 22% 9% 46% 31% 39% 45% 12% 27% 29% 35% 35% 36% 44% 47% Blacks Non-Blacks 55+: 44% Black women: 40% 18-24: 35% 25-39: 33% 40-54: 26% 55+: 25% 18-24: 33% 25-39: 16% 40-54: 9% 55+: 2% WHEN IT COMES TO CHOOSING A BANK, CUSTOMER SERVICE IS THE NUMBER ONE IMPORTANT FACTOR FOR BLACK AMERICANS. While convenience is still important, having people present who can provide excellent service and trusted guidance is critical.
  • 13. 13 Q9. With what type of bank(s) do you have account(s) with? BLACK BANKING | TRADITIONAL V NEW AGE_ BLACK AMERICANS ARE LESS LIKELY TO USE A TRADITIONAL BANK ACCOUNT AND MORE LIKELY TO BANK WITH A DIGITAL BANK. Black foreign-born customers are more likely to have a traditional bank account than Black U.S.-born (78% v 66%). Black men are more likely to have a relationship with a digital bank than women (48 v 38%). Traditional, brick-and-mortar bank (BofA, Wells Fargo, Chase, Citi, etc.) Digital/Online bank (Capital One, Discover Bank, Ally, etc.) Credit Union (local, Navy Federal, etc.) Financial technology companies (Chime, SoFi, etc.) 0% 5% 31% 79% 1% 5% 43% 67% Blacks Non-Blacks 55+: 72% Men: 3% Women: 7% 18-24: 54% 25-39: 54% 40-54: 44% 55+: 24% WAVE 2 - FINANCE + BANKING
  • 14. BLACK BANKING | DEFINING WEALTH_ 14 Q3_OE. Having wealth can mean different things to different people. What does being "wealthy" mean to you personally? WAVE 2 - FINANCE + BANKING - 30 yr old Black female from the South To me wealth means having enough money to live comfortably enough to get through life and its unexpected moments…” “
  • 15. BLACK BANKING | SAVINGS_ 15 Q29. Approximately how much money are you able to save in total every month, if at all? WAVE 2 - FINANCE + BANKING 18-24 25-39 40-54 55+’ I’m not able to save money 15% 22% 26% 16% Adults age 40-54 were more likely to say that they’re not able to save any money at all each month. Similarly, Black women were more likely to struggle saving each month than Black men. Women 29% 15% Men “I am not able to save money”
  • 16. W A V E 1 - I D E N T I T Y + V A L U E S 16 Q30. If you needed $500 in cash today for an unforeseen expense or emergency, where would you most likely get those funds from? WAVE 2 - FINANCE + BANKING BLACK BANKING | FINANCIAL EMERGENCY_ Bank account Cash I keep on hand Sibling Parent Son/Daughter Other relative (grandparent, aunt/uncle) Friend Payday loan/Cash advance service I would sell something of value (jewelry, vehicle, etc.) Retirement account (401K) Not sure 9% 4% 10% 5% 5% 3% 3% 14% 7% 17% 44% 15% 4% 10% 10% 9% 7% 6% 16% 9% 21% 35% Blacks Non-Blacks 47% 32% 55+: 43% IF $500 WAS NEEDED FOR AN UNFORESEEN EXPENSE, MOST BLACK AMERICANS TURN TO FAMILY & FRIENDS. Black foreign born are more likely than Black US born to have a bank account (48% v 34%) and less likely to keep cash on hand. 1. The South indexed higher for spouse/significant other and the Midwest indexed higher for other relatives (grandparents, aunt/uncle). 2. 18-24: 12% 25-39: 13% 40-54: 12% 55+: 4% <$30K: 17% $30-59K: 20% $60-99K: 38% $100K+: 33%
  • 17. BLACK BANKING | RETIREMENT_ 17 Q2. You indicated earlier that you are actively saving for retirement. Why is that? Out of all the reasons Black Americans are saving for retirement, they’re more likely to be saving to support their families. We found in Wave 1 that raising a family is highly important and a definition of success was centered around the ability to take care of one’s family. 18-24 25-39 40-54 55+’ I want to live comfortably/ without worry 53% 69% 70% 70% I want to be able to enjoy my retirement (e.g. travel) 51% 57% 65% 67% Social security is not enough 13% 31% 43% 60% I don’t want to burden my family/children after I retire 46% 40% 40% 54% Even when I’m, retired, I will have family/children to support 26% 30% 18% 17% WAVE 2 - FINANCE + BANKING Black 23% 16% Non-Black “Even when I’m retired, I will have family/children to support”
  • 18. BLACK BANKING | DEFINING WEALTH_ 18 Q3. Having wealth can mean different things to different people. What does being "wealthy" mean to you personally? WAVE 2 - FINANCE + BANKING - 31 yr old Black male from the Midwest Wealth means healthy, strong state of mind, community involvement, giving back to the inner cities and building businesses that create jobs for our future generations…” “
  • 19. BLACK BANKING | BLACK OWNED_ 19 Q13. You indicated earlier that you are African-American/Black. How interested are you in banking with a Black-owned bank or a bank that serves Black communities? (Any Agree) While Black Americans overall have indicated that they’re more likely to be interested in banking with a Black- owned bank, Black millennials are significantly more likely to be interested. This interest also increases with income. WAVE 2 - FINANCE + BANKING Non-Black Millennials across all ethnic segments are significantly more interested in banking with a Black-owned bank. 71% of Black households earning over $100K annually are interested in banking with a Black-owned bank. 70% of Afro-Latinos are interested in banking with Black-owned or Black serving banks. 18-24 25-39 40-54 55+’ Black Non-Black Black-Owned Bank 54% 69% 63% 64% 64% 29% Bank that primarily serves Black communities 52% 65% 63% 58% 61% 26% 1. 2. 3.
  • 21. WAVE 2 - FINANCE + BANKING MONEY MY WAY 21 THE BLACK MILLENNIAL | EXECUTIVE SUMMARY_ This section is dedicated to Black Millennials and their unique approaches to navigating money. Seemingly more savvy than previous generations, they maintain an optimism that keeps them actively searching for solutions and products that fit their lifestyle. They apply what works from a traditional perspective, but they also incorporate new solutions that streamline banking and potentially accelerate opportunities for growth. It’s imperative to keep your eyes on this group because they influence both older and younger generations.
  • 22. THE BLACK MILLENNIAL | GOALS_ 22 WAVE 2 - FINANCE + BANKING BLACK MILLENNIALS CITE BEING WEALTHY AS ONE OF THEIR GOALS IN LIFE Q1. Being wealthy is one of my goals in life (Completely Agree) 45% 48 % 37% 16% 18-24 25-39 40-54 55+
  • 23. BLACK BANKING | DEFINING WEALTH_ 23 Q3. Having wealth can mean different things to different people. What does being "wealthy" mean to you personally? - 35 yr old Black Woman from the Northeast Being wealthy means having enough money to live comfortably and retire early.” WAVE 2 - FINANCE + BANKING “
  • 24. 1 OUT OF 3 BLACK MILLENNIALS ARE TEACHING THEMSELVES THE BEST WAY TO MANAGE THEIR FINANCES. All Ages 18-24 25-39 40-54 55+’ BLACK 31% 33% 35% 29% 29% NON-BLACK 21% 14% 27% 20% 18% 24 THE BLACK MILLENNIAL | ON THEIR OWN_ Q1_011. Please select the point in the scale that describes how much you agree or disagree with each statement below. I had to learn about finances on my own. (Completely Agree) 42% of Black Americans who earn more than $100K a year had to learn about finances on their own. Black Americans who live in the Northeast are more likely to have been self-taught than those in other regions. 1. 2. WAVE 2 - FINANCE + BANKING I had to learn about finances on my own
  • 25. 25 THE BLACK MILLENNIAL | WHAT’S IMPORTANT TO US_ It is very important to me that I have a good credit score I tend to pay my credit cards(s) off in full each month I have enough money saved for a rainy day I am actively saving for my retirement 63% 42% 51% 84% 52% 37% 44% 81% All Blacks Black Millennials <$30K: 75% $30-$59K: 83% $60-$99K: 90% $100K+: 91% Q1. Please select the point in the scale that describes how much you agree or disagree with each statement below. (Any Agree) Women: 38% Men: 51% US Born: 43% Foreign Born: 55% 18-24: 42% 40-54: 33% 55+: 34% Non-Black 25-39: 60% WAVE 2 - FINANCE + BANKING WHEN COMPARED TO OLDER GENERATIONS, BLACK MILLENNIALS ARE DEMONSTRATING MORE SAVVY FINANCIAL PERCEPTIONS AND BEHAVIORS.
  • 26. My Bank Google Search YouTube Social Media Financial Advisors Spouse Money-Related Website Podcasts I don’t seek out advice BLACK 25% 25% 25% 6% 23% 13% 23% 9% 21% NON-BLACK 20% 21% 16% 2% 26% 22% 22% 7% 19% BLACK 25-39 26% 35% 40% 10% 24% 16% 26% 13% 10% 26 THE BLACK MILLENNIAL | SOURCES OF GUIDANCE_ Q7. Where do you seek out advice about money and/or building wealth? ALTHOUGH BLACK MILLENNIALS TURN TO THEIR BANKS WHEN THEY NEED ADVICE OR GUIDANCE ABOUT MANAGING MONEY OR BUILDING WEALTH MORE THAN NON-BLACK AMERICANS, THEY MORE OFTEN TURN TO GOOGLE SEARCH AND YOUTUBE. WAVE 2 - FINANCE + BANKING
  • 27. W A V E 1 - I D E N T I T Y + V A L U E S 27 95% OF BLACK MILLENNIALS ARE USING MONEY TRANSFER AND PAYMENT SERVICES AT SIGNIFICANTLY HIGHER RATES. Q22. Which money transfer services do you use, if any? WAVE 2 - FINANCE + BANKING FWD MOMENTUM | SOURCES OF WEALTH PayPal Cash App Zelle Venmo Google Pay Western Union Other None 5% 3% 16% 20% 28% 38% 68% 73% 11% 4% 17% 14% 21% 32% 55% 64% 23% 2% 9% 10% 25% 24% 21% 59% Non-Black Black Black Millennial Foreign born: 56% US born: 29% 55+: 23%
  • 28. 28 NARRATIVE #3 FWD MOMENTUM WAVE 2 - FINANCE + BANKING
  • 29. 29 FWD MOMENTUM | EXECUTIVE SUMMARY_ Black Americans have always lived in a racially biased America. This inequality shows up in numerous ways including an exponentially increasing wealth gap and inequitable access to opportunity. Still, the Black community continues to push forward with unwavering optimism and focus on building wealth not just for themselves, but for the generations to come. In this chapter, we’ll take a look at how Black Americans are preparing for the future. FUTURE FOCUSED WAVE 2 - FINANCE + BANKING 29
  • 30. FWD MOMENTUM | YES WE CAN_ 30 Q5. If you have long-term financial goals, how likely do you think it is that you will obtain these goals? 18-24 25-39 40-54 55+’ Very Likely or Somewhat Likely 74% 73% 62% 52% While Black Americans are more likely than non- Black to believe they will obtain their goals in the future, 64% vs 55%, the younger generations and foreign born are much more likely, respectively. Black men also indexed a bit higher than women at 67% vs 61%, respectively. WAVE 2 - FINANCE + BANKING Foreign Born 74% 63% US Born “I believe it is likely I will obtain my goals”
  • 31. W A V E 1 - I D E N T I T Y + V A L U E S 31 BLACK AMERICANS ARE 2X MORE LIKELY TO BELIEVE THAT THE MAJORITY OF THE WEALTH THEY WILL ACCUMULATE OVER THEIR LIFETIME WILL COME FROM THEIR OWN BUSINESS. Q31. Thinking about all the income/wealth that you will accumulate over your lifetime, where do you think most of that income/wealth will come from? My Job or Career Investments The Business I own My Side or Micro Business An Inheritance Rental Income Other Not Sure | Prefer not to answer 18% 11% 8% 11% 12% 15% 25% 54% WAVE 2 - FINANCE + BANKING 23% 18-24: 24% Men: 32% Women: 19% FWD MOMENTUM | SOURCES OF WEALTH_ * Respondents were allowed to select more than one response. *
  • 32. FWD MOMENTUM | GENERATIONAL AFFLUENCE_ 32 Q4. When it comes to personal finances, how do you think you’re doing compared to your parents? 18-24 25-39 40-54 55+’ 33% 46% 43% 50% Black Millennials, Baby Boomers and Foreign born are more likely to believe they’re doing better off compared to their parents. The more affluent they are, the more likely they believe they’re better off than their parents. 1. 18-24 are less likely to believe they’re better off than their parents. 2. WAVE 2 - FINANCE + BANKING Foreign Born 55% 44% US Born
  • 33. 33 18% 40-54 33% 25-39 6% 55+ 32% 18-24 Q21. Do you use a “personal finance” app to help you manage your money? FWD MOMENTUM | MONEY MANAGEMENT_ WAVE 2 - FINANCE + BANKING 21% Black 12% White Black Americans are more likely to use a personal finance app to help them manage their finances. This is especially true for Gen Z, Millennials, and households earning more than $100K a year.
  • 34. 34 Black Americans are using ‘Buy Now, Pay Later’ apps more than other segments and they are using Afterpay significantly more than other services. Q23. Have you used a 'Buy Now, Pay later' app in the past 12 months? Q24. Which ones? FWD MOMENTUM | BUY NOW, PAY LATER_ 18-24 25-39 40-54 55+’ Black Non-Black Yes 29% 35% 21% 15% 25% 19% No 71% 65% 79% 85% 75% 81% Afterpay Paypal pay in 4 Klarna Affirm Sezzle 14% 46% 35% 44% 41% 16% 29% 42% 44% 52% Blacks Non-Blacks WAVE 2 - FINANCE + BANKING *based on those who have a ‘buy now pay later’ app
  • 35. 35 Q16. Which of these types of accounts or investments do you currently own, if any? WHILE THEY TRAIL OTHER ETHNIC SEGMENTS IN TRADITIONAL INVESTMENTS, BLACK AMERICANS ARE INVESTING IN EMERGING PRODUCTS AT THE SAME RATE. Despite their relatively young age, 19% of 18-24 year old Black Americans are already investing in cryptocurrency. FWD MOMENTUM | INVESTMENT OWNERSHIP_ Cryptocurrency NFTs of Blacks and non-blacks are investing in cryptocurrency of Blacks and non-blacks are investing in NFTs 13% 4% WAVE 2 - FINANCE + BANKING
  • 36. Stocks Cryptocurrency Property Gold Bonds CD IRA NFT Virtual Land Metaverse Assets Other Not sure 21% 6% 3% 3% 6% 11% 15% 9% 12% 12% 14% 29% 20% 3% 4% 5% 11% 12% 12% 15% 18% 19% 22% 37% Black Non-Black 36 Q20. If you were given $1,000 today to invest, where would you most likely invest this money? FWD MOMENTUM | INVESTING MOVES_ WAVE 2 - FINANCE + BANKING 18-24: 20% 25-39: 29% 40-54: 28% 55+: 10% Men: 24% Women: 13% 55+: 24% WITH THE EXCEPTION OF STOCKS, BLACK AMERICANS WERE MOST LIKELY TO CHOOSE CRYPTOCURRENCY AS THE MOST LIKELY PLACE TO INVEST $1000.
  • 37. 37 SMART MARKETING MOVES WAVE 2 - FINANCE + BANKING NARRATIVE #4
  • 38. SMART MARKETING MOVES | SEEKING ADVICE_ 38 Q8. What is your most trusted source for advice about money and/or building wealth? WAVE 2 - FINANCE + BANKING My Family Financial Advisor Money related sites YouTube Google Search My bank I don't seek out advice 19% 7% 5% 5% 7% 18% 30% 21% 10% 7% 8% 9% 13% 23% Blacks Non-Blacks 18-24: 12% 25-39: 10% 40-54: 23% 55+: 33% <$30K: 7% $30-59K: 9% $60-99K: 22% $100K+: 30% As Black Americans age, they become more open to more traditional banking solutions, especially financial advisors. WHILE YOUNGER SEGMENTS ARE MORE INCLINED TO SEEK ADVICE FROM FAMILY AND/ OR YOUTUBE, OLDER SEGMENTS SEEK ADVICE FROM THEIR BANKS & FINANCIAL ADVISORS. 18-24: 36% 18-24: 15% 25-39: 14% 40-54: 4% 55+: 2%
  • 39. SMART MARKETING MOVES | ONLINE V IRL_ 39 Q1. Please select the point in the scale that describes how much you agree or disagree with each statement below. Banking online or via mobile is not personal enough for me (Any agree) 27% Women Black Americans are more likely than any other segment to believe online or mobile banking is not personal enough for them. Black men even more than Black women. WAVE 2 - FINANCE + BANKING 36% Men
  • 40. SMART MARKETING MOVES | BANKING METHODS_ 40 Q15. When you need to make a bank transaction, such as making a deposit or paying a bill through your bank account, what method(s) are you most likely to use? 18-24 25-39 40-54 55+’ Black Non-Black App(s) via smartphone 49% 64% 43% 28% 47% 43% Online via computer 31% 39% 42% 40% 39% 41% ATM 38% 38% 39% 28% 35% 26% In-person 43% 44% 50% 55% 49% 45% Telephone 24% 24% 19% 14% 20% 11% WAVE 2 - FINANCE + BANKING Black Americans are on par with other segments when it comes to making a bank transaction via smartphone apps and are likely to utilize them as well as pay in person. ATM usage is also significantly higher for Black Americans. 40
  • 41. SMART MARKETING MOVES | SENTIMENTS ON BANKS_ 41 Q12. How important is it to you to bank with a traditional, brick-and-mortar bank (B of A, Wells Fargo, Chase, Citi, etc.)? 18-24 25-39 40-54 55+’ Black Non-Black Top 2 (very or somewhat important) 45% 51% 56% 60% 54% 62% Neutral 32% 32% 25% 22% 27% 24% Bottom 2 (not very or not important at all) 23% 18% 19% 18% 19% 14% WAVE 2 - FINANCE + BANKING Older generations across segments find banking with a traditional, brick-and-mortar bank more important than younger generations.
  • 42. LEVEL UP LITERACY MARKET TO MILLENNIALS While financial literacy is critical, many financial service providers leave a gap between budgeting basics and long-term growth strategies. Continue relationship building and helping your Black customers advance product ownership beyond deposits. SMALL BIZ SUCCESS 1 out of 4 Black Americans believe having their own business will create most of their wealth. This creates a huge opportunity for banks and other financial institutions to provide content and services tailored to help them turn a side hustle into a thriving business. CATER TO BLACK WOMEN Often the head of their households, Black women are are looking for tools to help manage money. Because they index lower than men across key indicators, focusing on Black women is a prime opportunity to gain their influential loyalty and trust. Despite facing disproportionately higher student loan debt and wage gaps at every socio-economic tier, Black Millennials are focused on building generational wealth. Savvy, optimistic and entrepreneurial at heart, even those on the older end of the spectrum have yet to reach their peak earning years. They quench their thirst for financial guidance with culturally-relevant content and position your brand as a true partner on their journey to success. 42 SMART MARKETING MOVES | TOP 4_ WAVE 2 - FINANCE + BANKING
  • 43. APPENDIX 43 WAVE 2 - FINANCE + BANKING
  • 44. WILL CAMPBELL MELANIE WILLIAMS ROY EDUARDO KOKOYACHUK Co-Founder and CEO Quantasy + Associates 44 CARLOS YANEZ SVP, Head of Strategy Quantasy + Associates Co-Founder and Principal ThinkNow CSVP, Custom Research ThinkNow OUR LEADERS_ WAVE 2 - FINANCE + BANKING
  • 45. 45 Blacks (A) Non-Blacks (B) Gender Male 47% 46% Female 53% 54% Age 18-24 12%B 7% 25-39 34% 32% 40-54 25% 24% 55+ 30% 38% A Born in U.S 91% 88% Race/Ethnicity Black, African American 100% -- Asian/Pacific Islander 1% 10% American Indian or Alaska Native 2% 3% White 2% 82% Hispanic 7% 20% (n=1050) (n=500) Blacks (A) Non-Blacks (B) Region Northeast 18% 18% Midwest 17% 20% South 56% B 36% West 9% 26% A Marital Status Single 45%B 27% Married or living with partner 38% 54%A Separated/divorced/widowed 16% 18% Employment Employed (net) 57%B 50% Retired 16% 25%A Household income Mean (in thousands) $36K $48.3K WAVE 2 - FINANCE + BANKING DEMOGRAPHICS_