There is an opportunity for brands in the financial sector to create awareness and gain customers on some of these products that will help the newest faction of consumers to attain financial freedom.
Regardless of the country’s inflation rising monthly, majority of Tanzanians want to achieve financial freedom. Financial freedom seems to be a big priority for consumers in Tanzania and it’s worth noting that it is not just about income but also about budgeting, saving, and investing. The latest faction of consumers (Gen Zers) seem to be lagging on their knowledge of financial freedom. To leverage this consumer segment, brands in the financial space need to create awareness and come up with products that best suit the segment.
Tanzanians want to attain financial freedom
In a nutshell, financial freedom involves having enough savings, financial investments, and cash in hand to afford the kind of lifestyle one would want for themselves and their families. A tracker by Kasi Insight in May 2022 assessed respondents in Tanzania and their opinion on financial freedom.
Majority of Tanzanians (85%) are looking forward to achieving financial freedom,12% are not looking forward to it and 3% are unsure about it. The data shows that male and female are equally interested in achieving financial freedom, in fact 83% of male respondents and 88% of females want to achieve it.
Interestingly, middle income earners are the ones leading in their desire to achieve financial freedom. Out of the 85% that want to achieve financial freedom, 61% earn between USD 901 and USD 1800. It is worth noting that reaching financial freedom does not necessarily mean more income, it is using one's current income to gain financial independence. This means budgeting, saving, investing, and putting money aside for any sort of contingency.
There is need for brands in the financial sector to create awareness on how to achieve financial freedom among Gen Zers
When it comes to knowledge on issues on personal finances, Millennials are more knowledgeable compared to Gen Zers. 56% of Millennials have intermediate knowledge compared to 30% of Gen Zers. On the other hand, 58% of Gen Zers have basic knowledge compared to 25% of Millennials.
There is need for brands in the financial sector to create awareness on some of these products that help these generations attain financial freedom. Additionally, brands need to understand customer life stages to be able to speak the right language, have the right message and ultimately come up with the right products for each generation.
To create awareness around financial freedom, brands need to use traditional communication channels
When it comes to the kind of communication channels brands should use to create awareness, traditional media still thrives. For millennials, 54% prefer TV ads, 37% prefer radio ads, 32 % prefer social media posts,28% Newspaper ads and 25% online advertising.
On the other hand, 60% of Gen Zers prefer TV ads, 49% Radio ads, 22% Social media posts, 29% Newspaper ads and 18% Online advertising.