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Apples and Oranges: Not so Different After All

I spent the evening at the office of a market research firm in uptown Toronto. I was there to observe and listen to a series of focus groups that had been convened to discuss personal finance. One of the groups was comprised of boys, ages 15-16, while another was made up of girls, ages 11-12. Apples and oranges, you say? Well, they certainly had their differences, but the two groups also had a lot in common. (If you think about it, so do apples and oranges, but that’s another discussion.) The groups expressed similar views on a wide range of financial issues. To my surprise, notable differences emerged only in the details. For example:

Appetite for learning. Both groups said they had been taught very little or nothing about personal finance, either at school or at home. However, both described money management as a critical life skill and expressed a clear desire to learn more about it.
Differences: The girls were motivated by curiosity and wanted to learn about money from their parents. The boys were motivated by a sense of responsibility and thought financial literacy should be taught as part of the high school curriculum.

Concern about education. Both groups identified post-secondary education as the primary reason for saving their money. They were aware that their parents had been saving and making investments for their education, but did not know any of the details.
Differences: The boys were especially concerned about this issue, since they will finish high school in just a couple of years. The girls were understandably less concerned, since post-secondary studies are a more distant proposition at their age.

Channel limitations. Both groups praised ATMs, and to a lesser extent, online banking, for facilitating financial transactions. However, face-to-face interactions at a branch produced their most memorable banking experiences. There simply was no substitute for the human touch.
Differences: The girls said they might visit a bank website with their parents to learn about managing money. They also thought a kid-friendly financial website would be worth visiting. The boys said they would visit a bank website for basic transactions only.

Preference for debit. Both groups associated credit with high interest rates and worried that it might lead to reckless spending. Debit was considered a more appropriate method of payment, since it limits spending to the funds that are actually held in an account.
Differences: Though they expressed a preference for debit over credit, few of the girls actually have or use their own debit card. Typically, their parents provide cash for small purchases. By comparison, the boys use debit cards frequently to obtain cash from ATMs.

Appreciation for rewards. Both groups suggested that rewards would be a good way to promote responsible financial behaviour. For example, kids could receive special gifts or obtain merchant discounts for reaching savings milestones.
Differences: The groups differed significantly when it came to preferred rewards. The boys favoured discounts on food and sneakers, while the girls preferred discounts on clothing and accessories.

What does this all mean for the future of financial services in Canada? Should financial institutions focus on similarities or differences when looking for opportunities to serve this client segment? The participants in these focus groups mirror the group we are asking about in the Next Great Innovator Challenge, so I would love to hear your thoughts.

Posted by Nelson T. on January 11, 2007 11:55 PM

Comments (3)

Julie :

Where do we submit our final project?

Thanks!

Posted by Julie

Thomas Herbison :

I think you should definitely focus on the differences in regards to the boys and girls. For the upcoming generation I think there will be more emphasis on personalization of especially products, but services as well. The more you can personalize for all your different customers ultimately the more you will have. But I really think personalization is key to provide different options or "tailor made" accounts as one example for the upcoming generation. I don't want to go into too great of detail, this is a challenge after all.

Posted by Thomas Herbison

Nelson T. :

@ Julie,

Final submissions should be e-mailed to nextgreatinnovator@rbc.com

Good luck!

Posted by Nelson T.

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