The situation in Ghana was not so different as consumers were forced to use services like mobile money to decrease contact which came with handling money physically.
For investment brands in Ghana, convenience is the way to penetrate the Millennial, Gen Z market
The pandemic was a gamechanger for major brands across the world including those in the financial sector. The situation in Ghana was not so different as consumers were forced to use services like mobile money to decrease contact which came with handling money physically. Two years after the pandemic, mobile money continues to thrive majorly because of its convenience and ease of use. Interestingly, Millennials and Gen Zers are the ones driving this product category.
Despite the pandemic, demand for mobile money products remained strong
Over the last two years, consumers habits have changed in response to the pandemic. For brands in the financial sector, the question is how have these changes have impacted their category? Kasi retail category demand index, a measure of consumer demand for retail category provides insights on how consumer habits impacted demand for financial products. The index ranges from + 0.25 to -0.25. An index level close to 0.25 means demand is high as more consumers are looking to purchase while an index level close to -0.25 means demand is low. This measure is an effective tool for demand planning.
When the pandemic first hit the country in early 2020, the demand for mobile money (0.24) surpassed all other financial products. It was followed by demand for savings account (0.12), insurance products (0.09), investment products (0.05) and day to day banking that lagged at -0.10.
In July the same year demand for mobile banking decreased together with that of savings products and insurance products. Interestingly the demand for day-to-day banking and that of investment products decreased. Towards the holiday season (October 2020), demand for all financial products declined. This may be attributed to a wave of the pandemic that shifted consumers' focus to necessities.
As the year ended, demand for products started increasing. This was due to the easing of the pandemic restrictions and emergence of the covid-19 vaccine. Averagely, demand for mobile money was the strongest while that of investment products showed the most growth.
Millennials drive demand for both mobile money and investment products
When it comes to the consumer segment that drove mobile money demand; Gen Zers and Millennials take the lead with an average demand of 0.24 and 0.23 respectively. On the other hand, Baby Boomers, and Gen Xers lag at 0.17.
When it comes to investment products it is worth noting that their demand is a little bit lower than that of mobile money products. Millennials lead in demand for investment products at 0.13, Gen Xers follow at 0.05, Baby Boomers 0.03 and Gen Zers lag at 0.01.
There is opportunity for investment products brands to capture market share from mobile money products if they implement the right strategy for example using incentives to lure millennials into purchasing their products.
Brands in the investment sector should focus on leveraging Millennials and Gen Zers
Millennials and Gen Zers form 60% of the Ghanaian consumers. This faction of consumers form the target demographic for brands in the investment space. Interestingly, it is quite evident that these generations like easy-going things that are convenient and easy to handle. For this reason, it is important for investment brands to make their products convenient and understandable.
Additionally, brands need to create awareness of their products among these generations. This will go a long way in ensuring these generations are informed about the choices available to them.
Intriguingly, in an era where digital media is picking up, country traditional media still tops when it comes to brand communication. Television and Radio ads rank 1 and 2 among these generations. Though these were highly influenced with the pandemic, brands should monitor these channels to reach out effectively to their target audience.
Our data intelligence platform can help you track these trends in consumer behaviors in Africa over time. This provides you with valuable insights that can help you or your business make fast data-driven decisions.
Contact our team today to explore how our consumer intelligence can empower your decision-making process. Win with confidence with Kasi insights https://www.kasiinsight.com/thehub
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