New brands launch every day, seeking to disrupt established markets. But, whom do they appeal to, and which ones can grow into real competitors? We took a look at the financial services Industry, where a series of disruptors are making a name for themselves.

 

Discover Emerging Brands

In industries besieged with disruption, keeping an eye on emerging brands is vital for survival. Understanding consumer views towards new brands can help inform you of which innovations to adjust to, mimic, or outright buy. We used E-Score Brand to look at how emerging brands are affecting the financial industry, specifically the payments side.

 

 

• While PayPal is the biggest disruptor in the financial industry. It has the highest Awareness (78%), Appeal (68%), and a number of attributes among online payment brands including Credible, Reliable, and Trustworthy.
• Although Paypal is the original finance disruptor, it is now being disrupted by services like Google Wallet, which is the top Trend Setter and second among payment apps for Awareness. Another disruptor is Square Cash, which ranks second for Appeal (57%) and tops for a number of attributes including Innovative, Unique, and Smart.
• The success of Venmo, which has Appeal of 39% and is tops in this group for the attributes Cool and Cutting-Edge, has not only led to its acquisition by PayPal, but also forced the major banks to join forces to create the newest entry into the category, Zelle, in order to compete.

 

Credit Card Competitors

Understanding how particular segments of consumers feel about your brand can be difficult and invaluable, especially in a highly competitive industry like finance. Using E-Score Brand, we looked at the sentiments of affluent households (income of $100K+) towards the four competing major credit cards.

 

 

• With an Appeal score of 70%, Visa is the most appealing of the major credit card companies to affluent households. Additionally 45% say it is Better Than Competitors.
• Although Mastercard is considered more Classic (23%) than any other card by this group, it also has the highest Brand Consideration among non-users at 14%.
• American Express and Discover Card have carved their own identities in different ways. American Express is viewed as the most Distinctive, High Quality, and Luxurious, while Discover Card has a more personal feel as it is tops for being Approachable and Family Friendly.

 

Top Financial Brands by Segment

Being able to tailor your message to a specific audience is necessary to cut through the clutter of competitors vying for consumer’s attention. We used E-Score Brand to isolate specific demographic groups to see how financial payment brands faired in each group.

 

 

• PayPal has become the top financial brand for most of America. It is no surprise that it tops the lists of financial brands for Millennials and Early Adopters, but topping the Generation X list shows PayPal has grown beyond the disruptor stage.
• Although Early Adopters find PayPal most appealing, they are not adverse to traditional financial payment brands, as Visa and Mastercard round out their top three.

 

Takeaway

In a world fraught with disruption, E-Score Brand helps agencies and brand managers to monitor consumer sentiments about their brands and their competitors, both established and upstart, allowing them to pinpoint areas of strength and needed improvement.

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Methodology

• Data source: E-Score Brand fielded after 1/1/16 among respondents 18+.
• Affluent households represent respondents who identified their household income is $100,000+.
• Millennials represent respondents born between 1981 and 1997.
• Generation X represents respondents born between 1965 and 1980.
• Early Adopters are respondents who say they are one of the first to buy a new product or service.

 

Resources

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