Banking on Optimism
Today at a Glance:
-?????? The Evolution of Optimism
-?????? Business Travel: MICE
-?????? FS Weekly Digest
-?????? Lightbulb Moments
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Today’s customer is optimistic yet selective, diverse in background, and mobile in habits. To capture their loyalty, FIs must become architects of a new, sustainable optimism – one that empowers individuals and communities to thrive despite uncertainty.
In practical terms, that means segmenting your audience and tailoring products, crafting inclusive and authentic brand messages, smoothing every onboarding friction, bundling products into convenient solutions, delivering experiences that make banking feel engaging, and designing loyalty programs that flex to customers’ needs.
It’s a tall order, but the reward is a banking brand that doesn’t just manage money but enriches lives.
Many are almost there, but nobody is fully there yet. The one taking a very unique angle at achieving this mission is Block (Square/Cash App), which now has a stated goal to become THE bank for HHs under $150K in HHI.
A few questions that I can help you get a bit deeper understanding on today:
·???????? Is our bank ready to speak to the first-time customer in their own language?
·???????? Are we present in our communities in a real way?
·???????? Are we balancing high-tech with high-touch to make every customer feel valued?
Each “yes” to these questions is a step toward not only meeting the expectations of 2025, but exceeding them. The narrative arc is clear – from rebuilding optimism and trust, to fostering inclusion, to delivering tangible value and experiences.
FIs that weave these threads into their strategy will write the next chapter of growth. The message for 2025 is loud and clear: bank on community, bank on inclusivity, bank on flexibility… and customers will bank on you.
Optimism Gets Real: Consumers in 2025 are cautiously optimistic – 87% expect their finances to stay the same or improve in the next year, but they’re chasing small wins and practical goals over pie-in-the-sky dreams.
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I discussed an idea connected to this in: Democratization of Luxury. I’ve had a number of meaningful discussions since, which tells me there’s more in that idea for us all to improve upon.
I like Diana’s positioning of The Caviar Approach to Optimism: What we’re witnessing is a separation in optimism of the collective and the individual – not necessarily a new phenomenon.
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Lifestages are fragmented across generations and there is no longer a universal roadmap for what it means to grow, develop and prosper as an adult. There was no better signal of this in 2024 than tracking the growth of caviar in retail and foodservice alongside growing inflation and soaring food prices.
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Traditionally viewed as a luxury for the wealthy, more accessible promotion of caviar enabled younger individuals to obtain moments of status and success associated with adulthood.
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Many consumers are not living the reality of an adulthood they pictured, but rather than give up, they change the benchmark of success and joy.
Another concept that I love is, when the glass isn't half-full, consumers change the glass. Collectively we are seeing a shift in the benchmark for hopefulness and momentum. A set amount of liquid in a larger glass is going to hit a halfway mark, but when you transfer that same amount of liquid to a smaller glass it's overflowing. That mentality is occurring with optimism as the individual output gets measured against a smaller goal post.
?Please check out this amazing piece and let me know if a 25-minute chat with Diana on this interests you?
Multicultural Mainstream: First- and second-generation Americans now make up 25% of the US population. They bring diverse values and are more receptive to brands that champion inclusivity and fair treatment – a huge opportunity for banks to tailor segmentation and messaging.
1st generation immigrants prioritize family stability and health (their top life goals), while 2nd gen Americans put more emphasis on individual passions and freedom. These differences underscore the need for segmentation in both product development and messaging. A one-size-fits-all approach will miss the mark.
Crucially, both groups gravitate towards brands that make them feel seen and included. Inclusive messaging and representation are non-negotiable.
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Marketing that highlights shared values (family, success, education) while authentically reflecting consumers’ cultural backgrounds strikes gold. For example, ads showing diverse families achieving financial goals or entrepreneurs from immigrant communities thriving will resonate.
My key takeaway from the entire report: Make inclusivity a year-round strategy, not just a heritage month checkbox. When immigrants and their children feel a brand genuinely understands their journey, loyalty follows – often spanning generations in the same family.
Foreign-born consumers often hit frustrating barriers in their first encounters with financial institutions: language obstacles, lack of US credit history, and unfamiliar rules. The traditional onboarding process isn’t always built for this scenario, leading many newcomers to feel overwhelmed or excluded.
For FIs, this is a call to action: make onboarding radically accessible. A standout insight – nearly two-thirds of foreign-born newcomers (64%) are interested in bundling multiple financial products right from the start. In other words, they want a one-stop, convenient solution to set up their financial life. [A call-back to Block’s stated vision in their Q4 earnings. Others are working to make this a reality for the consumer today]
Key to making this work is practical flexibility. New arrivals might not have a U.S. credit score yet, so perhaps they get a secured product or a new secured/credit build hybrid. Or broaden the underwriting criteria and consider alternative data like rent or utility payments to approve that starter credit card.
They might not speak fluent English – so ensure your app and materials are translated, and have customer service reps or chatbot support in key languages.
These investments pay off in trust. It’s no coincidence that accessibility and cultural sensitivity are cited as critical for winning foreign-born consumers’ trust. When onboarding is done right, banks turn what could be a daunting first step into a moment of relief and delight. That new customer walks away thinking, “Wow, they made it easy for me,” which is exactly the sentiment that fuels loyalty down the road.
Amr highlights Bank of America as a best-in-class example:
Business travel is roaring back, poised not only for recovery but growth, providing retail banks and financial brands an optimistic signal to reconnect with a premium, influential audience. Despite some economic clouds forming in early 2025, the outlook for business travel—particularly the MICE (Meetings, Incentives, Conferences, Exhibitions) segment—remains confidently bright.
Growth is Clear, Despite Headwinds:
Actionable Intelligence for Marketers:
Today's customers are:
optimistic yet cautious,
diverse yet seeking common ground, and
mobile yet craving meaningful connections.
This shifting dynamic challenges banks to reflect deeply on how we engage with customers and communities, not merely through products but through authentic experiences and genuine inclusivity.
The future asks us to imagine what banking could become if driven by empathy, flexibility, and a profound understanding of human aspirations.
1. How can we foster optimism among our customers amid uncertainty?
2.?How are shifting consumer expectations redefining your approach to customer engagement?
3.?What experiences are you creating today that will shape customer loyalty tomorrow?
As ever - Anuj
Director of Mintel Trends, North America
2 天前Hi Anuj, This is wonderful and I appreciate the shout out for my evolving optimism piece. I love the way you framed it. Since you're looking for feedback on how people consume, I'm still someone reading as for me I am habit driven. I associate LinkedIn with reading so I tend to associate this platform with reading. However, after reading Daniela E Hernández's approach I love the idea of listening first and reading second. Great piece as usual!
Helping you understand what consumers want and why | Strategic Partnerships
2 天前A great listen this morning!