Young people in the UK have said financial firms have an important role to play in driving progressive societal change but must do so in an authentic way with words that are followed up with action, according to MRM’s inaugural Young Money Report.
The report – Guidance not Gratification: Why financial services needs to reclaim its finfluence, surveyed 1,000 UK-based 18- to 30-year-olds between August and September last year. It found this age group wanted financial services providers to take social justice issues seriously where over 55% surveyed said global issues such as climate change and social equality must be addressed by firms.
When asked if they believe social justice efforts made by their current financial services providers are driving real change in society, over a third (35%) agreed they are. Yet, another third (32%) suggested it depends on the company where concerns were raised about greenwashing and performative diversity.
This comes as a further 27% said campaigning on social justice and climate issues is important, however, it depends on what company is doing it. The peer group emphasised they wanted to see authenticity in company claims – what matters is not what is being said, but who is saying it, and why.
Chris Tuite, director and head of consumer finance at MRM, explained: “Our findings show that for young people in the UK social justice is important. It seems likely that it does influence where they bank, invest, and spend. They are informed, educated and engaged on the issues that matter to them and so any, and all efforts made by FS firms to be a force for good in society need to be relevant and authentic.
“Greenwashing? Performative diversity? Young People are not buying it. These issues need to be part of a broader patten of behaviour that runs through all aspects of the business.
“Clearly young people see their money aligned closely with their values and that is increasingly likely to drive their money decisions. Financial services firms need to take heed and respond or they risk reputational damage for inaction or lacking authenticity.”
