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Why finance brands are outsourcing financial literacy

Why finance brands are outsourcing financial literacy

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3 years ago

3 years ago

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Zogo, the fintech education app, is here to change the financial literacy levels of Gen Z around the globe and finance brands should thank them. Zogo is helping finance brands educate their customers in a simple and fun way.

Improving the financial literacy of consumers is critical for finance brands, as a confident consumer is a better financial customer in the long term. Not only that, by educating consumers finance brands can build a sense of trust and loyalty with customers. Zogo offers a win-win for finance brands and Gen Zers.

Zogo: improving financial literacy one pineapple at a time

Zogo’s Founder, Bolun Li, compares the app to the popular language learning program Duolingo, as users take quizzes and games centered around improving their financial literacy. Users have access to 300 modules of financial content that they can step through at their own pace and earn ‘pineapples’ which they then can redeem as gift cards.

A simple model, Zogo has expanded this concept by allowing finance brands to white-label the app to teach customers about financial topics and bank-specific products and services. Finance institutions can also track usage and engagement, providing them with critical information about their target audiences’ interests and what they want to learn about.

Beginning as a simple app, Zogo has now partnered with over 116 banks and credit unions representing over $30 billion in assets. The app itself also boasts over 100,000 users showcasing the demand consumers have for improving their financial literacy.

“ Zogo has now partnered with over 116 banks and credit unions representing over $30 billion in assets. ”

Give the people what they want

With 74% of Gen Z not feeling confident about their personal finances and 73% of them wanting to improve their financial literacy, Zogo is simply meeting the demand of consumers. Growing up with technology, the gamification of the financial services industry is an area that is meeting Gen Z and Millennials’ expectations. In fact, 48% of Gen Z would prefer to use tech-driven tools over traditional textbooks to learn.

While finance topics are perceived as being dense, complex and boring to this audience, Zogo’s game format has challenged this. This is what appeals to Gen Z and Millennials as Zogo offers an exciting challenge, a fun learning experience and instant rewards for gaining new skills. In fact, 80% of consumers state that game-based learning is more engaging.

Financial literacy is a problem for financial institutions

Financial institutions are starting to see the success of Zogo and have begun partnering with them and providing their game-based learning on their own apps. While improving consumers’ financial literacy may seem like a problem for customers, it’s a responsibility that also rests with finance brands as well, and ultimately offers benefits in terms of customer loyalty and product uptake in the long term. 47% of consumers agree believing it’s their bank’s duty to help them make better financial decisions.

Li commented, “Banks and credit unions are uniquely positioned to assume a leadership role when it comes to boosting financial literacy in their communities, deepening their relationships with customers in the process.”

Improving financial literacy is a win-win for consumers and finance brands

By improving the financial literacy of consumers, finance brands can sculpt better customers that will, in turn, benefit their business. Informed customers that understand their personal finances are able to meet their financial commitments and are more likely to feel confident to utilise a broader spread of products.

Not only that, when finance brands focus on educating their customers it builds loyalty and trust in both the business and their financial products. 50% of customers were more likely to consider staying with their bank if it supplied helpful content.

Educational content makes consumers 131% more likely to buy a product, suggesting that helping customers improve their financial literacy is beneficial for finance brands’ bottom line. In fact, 81% of people note that trust plays a factor in their purchasing decisions, making educational content an important area for finance brands to capitalise on.

Complex problems transformed into simple understandings

What sets Zogo apart from other gamified aspects of the financial industry, is that it tackles large and complex financial concepts. While many banks have already gamified savings, this isn’t the area that people need help with. Instead, concepts such as tax, retirement funds, mortgage repayments and investing are what consumers want and need to learn about.

Apps aren’t the be all and end all

While the Zogo app has been very successful in increasing financial literacy, it’s not the only way finance brands can do so. It’s important that finance brands create an educational content strategy that targets their specific audience. A 60-year old customer won’t be demanding the same educational content as a 20-year old. In the same vein, it’s also important that finance brands present their educational content in dynamic and engaging ways and share it across the social channels where the target audience already engages.

Here are five ways finance brands can educate their customers:

Zogo provides a great example of how finance brands can tackle the problem of financial literacy, and its rapid success and take-up by financial institutions reflects the demand for financial education that needs to be filled. A way to support customers, gain a competitive edge and build brand loyalty, focusing on financial literacy is beneficial for customers and your bottom line.

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