Banking with the Underbanked: Using Brand Storytelling to Drive Financial Inclusion in 2024

In today’s financial landscape, the underbanked—a group of individuals who have limited access to traditional banking services—represent a significant opportunity for institutions that invest in the resources to reach them. Globally, over 1.7 billion people remain unbanked, and in many industrialized countries, millions still face barriers to full financial participation. For the financial services industry, reaching this underserved audience isn’t just about expanding market share; it’s about driving financial inclusion and offering solutions that foster trust and empowerment. This is where brand storytelling plays a pivotal role, allowing banks to connect with the underbanked through authentic narratives that reflect their needs and aspirations.

Understanding the Underbanked Market

The underbanked often include individuals who may have a bank account but still rely on alternative financial services such as payday loans, check-cashing services, or money orders. These individuals tend to avoid traditional banking due to factors like high fees, lack of trust, or limited access to physical bank branches. Many face economic disadvantages and may also belong to a myriad of groups, including single parents, minority groups, and those who recently immigrated to the U.S. Financial institutions looking to engage with this demographic must adopt a customer-first mindset, focusing on solutions that address these barriers while empowering the underbanked to achieve financial stability.

Brand Storytelling as a Tool for Connection

Brand storytelling is an effective way to humanize financial services and present the value of banking in a way that resonates with the underbanked. It goes beyond selling products and services, aiming to create a narrative that reflects the challenges and aspirations of the target audience. Stories help brands illustrate how their offerings can positively impact customers’ lives, particularly those with limited access to financial resources.

1. Building Trust Through Relatable Narratives One of the primary reasons many individuals are underbanked is a lack of trust in traditional financial institutions. Banks have historically been viewed as inaccessible, especially for marginalized groups. By telling stories that showcase real-life examples of individuals overcoming financial obstacles, brands can break down these barriers.
   Consider a campaign that highlights customers who have successfully transitioned from relying on payday loans to using banking services for long-term savings and investment. By telling these stories, brands can highlight the transformative power of their services, demonstrating that they understand the struggles of the underbanked and are committed to offering viable, supportive solutions.
2. Showcasing Financial Empowerment Storytelling allows financial institutions to frame their products and services as tools for empowerment. For the underbanked, access to credit, savings accounts, and financial education can be life-changing. Through storytelling, banks can present these tools as pathways to financial independence, encouraging individuals to take control of their financial futures.
   Banks can create stories around specific products, such as low-fee checking accounts or mobile banking solutions, that are designed with the underbanked in mind. These stories can emphasize how the brand is helping people build credit, save money, and achieve milestones like owning a home or starting a business.

Leveraging Video in Brand Storytelling

While written content and social media campaigns play a key role in brand storytelling, video is a particularly powerful medium for reaching the underbanked. Given the prevalence of mobile devices, video content is easily accessible to a wide audience and can communicate complex ideas in an engaging and relatable way.

1. Humanizing the Financial Experience Videos that feature real people sharing their financial journeys can make banking feel more personal and accessible. Financial brands can create short, impactful videos that highlight individuals from underbanked communities who have benefited from financial services. These customer stories can break down financial jargon, making banking services feel more relatable to those who may not be familiar with traditional banking terms or products.
   For example, a video series featuring interviews with underbanked individuals who successfully navigated challenges like improving their credit score or saving for their family’s future could inspire others in similar situations to take action.
2. Explaining Financial Products and Services Financial products can often seem intimidating or confusing, especially to those who have had limited exposure to them. Explainer videos that break down how services like mobile banking, microloans, or low-fee savings accounts work can go a long way in educating the underbanked.
   A bank could produce a video series that walks viewers through the steps of opening an account, applying for credit, or using online budgeting tools. By simplifying the process, brands can demystify banking and encourage more individuals to engage with financial services.
3. Highlighting Community Involvement Many banks are actively involved in community outreach and financial education programs aimed at underserved populations. Video content that showcases a brand’s involvement in community development can enhance its reputation as a socially responsible institution.
   Banks can produce documentaries or short clips featuring their partnerships with local nonprofits, workshops they’ve conducted on financial literacy, or scholarships they’ve provided to underserved communities. These videos can serve as a call to action for other members of the underbanked community, showing them that the bank is committed to making a tangible difference in their lives.

Overcoming Challenges in Storytelling

While storytelling offers numerous advantages for reaching the underbanked, there are challenges as well. One potential pitfall is appearing disingenuous or exploitative. Banks must ensure that their stories are authentic and that they truly represent the needs of the underbanked.

To avoid these challenges, brands should collaborate with community organizations and leaders to co-create stories that are reflective of the real needs and experiences of the underbanked. Additionally, it’s important for banks to deliver on the promises they make in their storytelling campaigns, ensuring that the products and services they promote truly meet the needs of this demographic.

Getting Over Underbanking

As financial institutions seek to engage with the underbanked in 2024 and beyond, brand storytelling will be a vital tool for building trust, empowering individuals, and driving financial inclusion. By using authentic narratives and leveraging the power of video, banks can connect with this underserved population in meaningful ways. Through stories that highlight real-life transformations and practical solutions, brands can inspire the underbanked to take the first step toward financial stability.

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