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Digital Influence on Financial Services Among Multicultural Audiences

Methodology

2

IAB conducted a custom analysis of syndicated Prosper Insight data to look at consumer and media behaviors of investors, defined as US adults 18

or over who answered the question ‘Which of the following investments do you currently have?’ with ‘Annuities’, ‘Bonds’, ‘Company sponsored 401k’,

‘Mutual fund investments’, ‘Stocks in companies’ or ‘Treasury Bills.’ Investors were compared to the general Adult 18 and over population in the US. The

report was supplemented with the media influence of investors. The study compared the purchase plans and influence of various media types on US

Adults 18 and older and compared them to Hispanic Americans, African Americans and Asian Americans 18 and older.

The report is derived from the Prosper Insights & Analytics Monthly Consumer Study (May 2017) of 7,335 respondents surveyed online which focused on

the 4,839 respondents who invest and the annual 2017 Media Behaviors & Influence™ (MBI) Study of 16,644 respondents surveyed online, focusing on

the 6878 respondents who invest. This is supplemented by data from the annual 2017 Media Behaviors & Influence™ (MBI) Study of 16,644 US adult

respondents surveyed online with a focus on media influence and behaviors among the general adult US population (16,664 respondents), Hispanic

Americans (2574 respondents), African Americans (2405 respondents) and Asian Americans (471 respondents). The studies have a margin of error of

1%, at a 99% confidence level.

Sample Sizes

• Prosper Insights & Analytics Annual Media Behaviors & Influence™ (MBI) Study

• 16,644 Adults 18+ representative of the general US population

• Prosper Insights & Analytics Monthly Consumer Survey conducted online in May 2017

• 7,335 Adults 18+ representative of the general US 18+ population

About Prosper Insight™Prosper Insight delivers customized timely market intelligence from various sources through its cloud-based technology-driven Integrated Solutions Platform. Solutions are delivered

on multiple devices (PC/Tablet/Smartphone) though the InsightCenter™ tool using diverse information sources relevant to clients’ business needs. www.GoProsper.com.

Digital Influence on Financial Services Among Multicultural Audiences, IAB, July 2017

Summary

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Who Are Investors and What Are They Invested In?

Over half (52%) of US adults are invested in the stock market via stocks, 401ks, IRAs or other investments. They tend to be 35 and older and earn over $75k.

Roughly half of investors have a 401k (55%) or IRA (46%). 40% own stocks directly and 35% invest in mutual funds. These numbers are higher for multicultural groups. IRAs and Stocks are among the top 3 consumer investment properties and African Americans are more likely to own stocks than IRAs. Also, bonds are more popular than annuities among multicultural investors.

Investors are saving more, providing investment opportunities.

Consumer confidence is up, particularly among investors, with July showing the highest rating this decade.

Over two-thirds of investors (69%) would invest in the stock market.

Investors are financially secure: They report that they are saving enough, financially better off and financially stable. Multicultural investors are more likely to report being better off than a year ago but less likely to feel financially stable.

What Are Their Financial Plans?

Investors have immediate financial plans: In the next 3 months, one-third plan to increase savings or pay down debt, 12% plan to buy stocks and 5% plan to refinance.

Financial plans vary by multicultural group: Paying down debt is most important among Asian and African American investors. Hispanic and African American investors are 3x more likely than the general population to refinance their home.

Investors, especially among multicultural groups, are more likely than the general population both to own credit cards and to open new accounts whether credit cards, savings, brokerage accounts or trading.

While all multicultural groups are more likely to do any of these activities, Hispanic and Asian investors are much more likely to open a new credit card account


Summary

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What Financial Services Do Investors Use? Are They Planning to Buy or Switch Insurance?

Multicultural consumer investors are more likely to use a variety of financial services.

Asian American investors are nearly twice as likely as the general population to open a new bank account and Hispanic investors are twice as likely to open a new broker/trading account.

African American investors are more likely than the general population to use a Credit Union and less likely to use a bank. Asian and Hispanic investors are more likely to use insurance services.

Investors are more likely to buy or switch insurance (41%), especially auto (28%). This is especially true of multicultural consumer investors. Nearly two-thirds of Asian and Hispanic investors plan to buy or switch insurance. Asian Americans are more likely to buy or switch any type of insurance.

What Media Has Influence on Consumers’ Financial Services Purchases?

Word of mouth, internet, TV and articles have the most influence on consumers’ financial services and insurance purchases, especially among multicultural consumers.

The internet has more influence than TV for financial services and insurance and is the #1 influence among Hispanic and Asian Americans.

All digital media formats influence financial/insurance purchases are more influential among multicultural consumer investors.

Search is also important in consumers’ financial services and insurance Decisions: Roughly two-thirds of investors (64%) and half (53%) of all consumers search online for financial info or services. These numbers are even higher for multicultural consumers, especially Asian Americans.


5

Who Are Investors and What Are They Invested In?

Financial Services and Digital Influence

Over Half of US Adults Own Stocks

6

52% of the US population is invested in the stock market

US adults 35 and older and those who earn over $75k are more likely to invest

*Source: Gallup, March 2017

79%

50%

23%

56%

62%

38%

52%

21%

50%

77%

44%

38%

62%

48%

>$75k

$30k-$74,999

<$30k

Salary:

55+

35-54

18-34

US Adults

Investors Non-Investors

US Adults Invested in the Stock Market

by Age and Income*


http://www.gallup.com/poll/190883/half-americans-own-stocks-matching-record-low.aspx

Among Consumer Investors, Roughly Half Have a 401k or IRA

7

5%

25%

26%

35%

40%

46%

55%

Treasury Bills

Bonds

Annuities

Mutual fund investments

Stocks in companies

Individual Retirement Account (IRA)

Company sponsored 401K

Consumer Investments

Investors

Which of the following investments do you currently have? (Check all that apply)

(among Consumer Investors, defined as US adults invested in at least one of the following)

40% own stocks directly and 35% invest in mutual funds


Investments Vary Among Multicultural Groups

8

US Investors US Adults

Adults 18+ Hispanic African American Asian

The most popular consumer investment is the 401k, especially among multicultural groups.

IRAs and Stocks are among the top 3 consumer investment properties with African Americans more likely to own stocks than IRAs.

Bonds are more popular than annuities among multicultural investors.

5%

25%

26%

35%

40%

46%

55%

TreasuryBills

Bonds

Annuities

Mutualfunds

Stocks

IRA

401K

6%

21%

26%

26%

30%

35%

59%

TreasuryBills

Annuities

Bonds

Mutual funds

IRA

Stocks

401K

7%

20%

23%

24%

36%

36%

64%

Treasury Bills

Annuities

Mutual funds

Bonds

Stocks

IRA

401K

7%

15%

22%

35%

35%

45%

57%

TreasuryBills

Annuities

Bonds

Mutual funds

Stocks

IRA

401K


Consumer Investments

*

Which of the following investments do you currently have? (Check all that apply) (among Consumer Investors, defined as US adults invested in at least one of the following)

*

**

*Low sample size. Use directionally.

Consumer Investors are Saving Enough and are Financially Better Off

9

45%

83%

42%

54%

87%

49%

63%

89%

40%

63%

91%

40%

58%

92%

40%

Agree/Completely Agree Same/Better Off Somewhat/Very FinanciallyStable

Adults Investors Hispanic Investors African Am. Investors Asian Investors

How do you feel about the following statement?

"I am saving enough to meet my future needs."Regarding your personal financial situation, compared

to this time last year, are you...

How do you feel about your overall

financial security? Please tell us using a scale of

1 ("Very insecure/financially vulnerable")

to 5 ("Very secure/financially stable").


Investors are…

Saving Enough Financially Better Off Financially Stable

• Multicultural investors are more likely to report being better off than a year ago but less likely to feel financially stable.

Consumer Confidence is Up From a Year Ago

10

Consumer Confidence

Which one of the following best describes your feelings about chances for a strong economy during the next 6 months? (Confident/Very Confident)

Adults 18+


June 2017

Year Over Year, Consumer Confidence in July was the Highest this Decade

11

Consumer ConfidenceJuly 2007 – July 2017



52%

58%

US Adults 18+ US Investors

Consumer Investors are More Confident in the Economy, Especially Multicultural Investors

12


Consumer Confidence in Economy

56%

50%54%

67%

62%

57%

Hispanic African American Asian

Adults Investors

Consumer Confidence in Economy


May 2017

66%

73%

69%

69%

34%

27%

31%

31%

Investor Confidence in the Stock Market

Would definitely/probably invest (You are Confident)

Would definitely/probably not invest (You are not confident)

Over Two-Thirds of Investors Would Invest in the Stock Market

13

Please tell us your feelings towards investing in the stock market? (Confident/Very Confident, Would Probably/Definitely Invest)

Would Invest

WouldDefinitely

Not Invest


Would Not Invest

Consumer Investors

Hispanic Investors

African American Investors

Asian AmericanInvestors

Nearly three-quarters of African American Investors are confident in the market

Slightly fewer Asian American Investors are confident in the stock market

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What Are Their Financial Plans?


Financial Plans Vary Among Multicultural Groups

15



Multicultural groups are more likely to take financial steps in the next 3 months.

Paying down debt is most important among Asian and African American investors.

Hispanic and African American investors are 3x more likely than the general population to refinance their home.

4%

4%

8%

15%

31%

29%

5%

6%

12%

16%

32%

33%

Refinancehome

Sell Stocks

Buy Stocks

Pay withcash more

Pay downdebt

Increasesavings

Which of the following financial steps are you planning to take in the next 3 months? (Check all that apply)

5%

10%

9%

21%

33%

30%

8%

16%

13%

22%

33%

34%

Sell Stocks

Refinancehome

Buy Stocks

Pay withcash more

Increasesavings

Pay downdebt

6%

11%

9%

19%

32%

32%

9%

16%

14%

22%

35%

37%

Sell Stocks

Refinancehome

Buy Stocks

Pay withcash more

Pay downdebt

Increasesavings

7%

7%

13%

14%

24%

33%

9%

8%

17%

15%

27%

34%

Refinancehome

Sell Stocks

Buy Stocks

Pay withcash more

Increasesavings

Pay downdebt


Financial Plans by Age Group

*


*

*

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What Financial Services Do Investors Use? Do They Plan to Switch

Insurance?


Investors are Planning to Open New Accounts

17

5%

7%

15%

16%

9%

11%

16%

20%

Open a broker/trading account

Start trading in the stock market

Open a bank account

Open a credit card account


Are you planning on doing any of the following financial activities in the next 12 months? (Check all that apply)

1 in 5 is planning to open a new credit card account

Roughly 1 in 10 is planning to start trading or open a trading account



5%

7%

15%

16%

9%

11%

16%

20%

Open abroker/trading

account

Start trading inthe stock market

Open a bankaccount

Open a creditcard account

8%

11%

23%

26%

18%

19%

28%

36%

Multicultural Consumer Investors are Much More Likely to Open New Accounts

18

Financial PlansUS Investors US Adults

While all multicultural groups are more likely to do any of these activities, Hispanic and Asian investors are much more likely to open a new credit card account

Asian American investors are nearly twice as likely as the general population to open a new bank account

Hispanic investors are twice as likely as the general population to open a new broker/trading account

8%

11%

23%

22%

16%

19%

29%

30%

11%

14%

27%

31%

17%

20%

32%

34%

Are you planning on doing any of the following financial activities in the next 12 months? (Check all that apply)



**

***


7%

12%

12%

10%

24%

74%

11%

19%

24%

28%

35%

83%

8%

11%

10%

8%

27%

68%

13%

19%

21%

24%

42%

79%

9%

16%

20%

17%

21%

78%

12%

19%

29%

30%

26%

83%

4%

9%

11%

15%

27%

74%

5%

13%

19%

33%

35%

83%

Check CashingCompanies

Savings &Loans

InsuranceCompanies

Brokerage Firms

Credit Union

Bank

Use of Financial Services Varies Among Multicultural Groups

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African American investors are more likely than the general population to use a Credit Union and less likely to use a bank

Asian and Hispanic investors are more likely to use insurance services

Multicultural groups are more likely to use S&Ls and check cashing companies


Which of the following do you use for banking & financial services? (Check all that apply)

Financial Services Used

*


(Yearly. Investors: Asian: at 25% n=61), Afr Am. 8% n=58, Hisp. 6% n=55)

*

7%

19%

23%

31%

36%

55%

12%

27%

37%

39%

44%

67%

5%

10%

12%

16%

23%

35%

6%

14%

19%

20%

28%

41%

Renter's

Life

Homeowners

Health

Auto

Any Insurance

8%

16%

11%

19%

25%

43%

11%

24%

21%

26%

35%

55%

Multicultural Groups are More Likely to Buy or Switch Insurance, especially Auto

20


Nearly two-thirds of Asian and Hispanic investors plan to buy or switch insurance

Asian Americans most likely to buy any type of insurance.

Are you planning on buying or switching any of the following types of insurance in the next 12 months? (Check all that apply)


Insurance Purchases Planned by Age Group

*Low sample size. Use directionally


*7%

13%

14%

23%

32%

48%

10%

22%

27%

31%

43%

61%

21

Which Media Influence Consumers’ Financial Services

Purchases?


Word of Mouth, Internet, TV Have More Influence on Multicultural Consumers’ Financial Services Purchases

22

Please tell us which of the following media influences your Financial Services/Insurance purchases:

16%

20%

22%

21%

26%

29%

TV/Broadcast

Internet

Word of Mouth

13%

19%

21%

17%

22%

25%

TV/Broadcast

Word ofMouth

Internet

16%

17%

23%

19%

19%

27%

TV/Broadcast

Word ofMouth

Internet


The internet is the #1 influence on Hispanic and Asian Americans for Financial Services and Insurance Purchases

11%

18%

19%

13%

20%

22%

TV/Broadcast

Internet

Word of Mouth


Top Media Influences on Financial Services/Insurance Purchases by Age Group


*

*

Digital Media Influence Financial/Insurance Purchases, Especially Among Multicultural Consumer Investors

23

20%

8%

6%5%

4% 4%3% 3%

28%

9%

13%14%

8%7%

8%

6%

31%

12%

7%

13%12%

9%10%

12%

Internet Email Advertising Social Media(Facebook, Twitter,

Instagram, Pinterest,etc.)

Mobile Websites andApps (Smartphone,

Tablet)

Digital Video (onMobile Device or

Computer)

Blogs Internet Radio Text Messaging onMobile Device

Digital Media Influence on Financial Services/Insurance Purchases

US Investors Hispanic Investors African American Investors Asian American Investors

Please tell us which of the following media influences your Financial Services/Insurance purchases:

African American investors are more likely to be influenced by digital media

Hispanic American investors are more likely than any other group to be influenced by social media in these purchase decisions


*Low sample size. Use directionally.Media Influence on Asian American Investors for some media not shown due to low sample size.

*

29%

53%

64%

US Adults 18+ US Investors

Multicultural Consumers are More Likely to Search for Financial Services

24

Asian Americans even more likely to search

Please tell us how often you search online for the following (Regularly/Occasionally).

Regularly means routinely, as a set pattern; Occasionally means no set pattern, as mood suits):

Financial Information/ServicesSearch for Financial Info/Services

66% 68%

77%81% 79%

86%

Hispanic African American Asian

Adults Investors


Implications

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Implications

Consumer confidence is up and more and more consumers, particularly multicultural consumers, are investing in the market in some way: Stocks, 401ks, IRAs, bonds or mutual funds. These investors are likely to use a variety of financial services. Moreover, they are planning to open new accounts and to buy or switch insurance. In short, they provide a lucrative opportunity for financial service and insurance advertisers seeking to reach their target audience.

US consumers, especially those invested in the stock market, say that the internet is their top influence after word of mouth in financial service or insurance purchases. In fact, the internet holds more sway than TV over their financial service purchase decisions. Multicultural investors are even more influenced by digital media, saying the internet outweighs word of mouth as their #1 influence in insurance and financial service purchases. Other digital media formats also have greater influence on multicultural consumer investors’ finance purchases.

Most investors, particularly multicultural investors, say that they’re likely to do online searches about financial and insurance companies. They also report that a variety of media types, both online and traditional, influence their online searches. This emphasizes the importance of including digital media in cross media ad campaigns. While both traditional and digital media inspire online searches, the internet is most likely to influence their financial services purchases, particularly among multicultural audiences.


Digital Influence on Financial Services Among Multicultural Audiences

Questions?

Kristina Sruoginis

IAB Research Director

[email protected]

mailto:[email protected]

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