An integration between Experian and Snapchat’s AI Sponsored Snaps ad offering, currently in alpha, is the latest example of companies using social media to improve financial literacy.
Debbie Hsu, executive vice president of product for Experian Consumer Services, said the initiative allows a trusted brand to provide financial education to young consumers in a format they are comfortable with. The partnership grew from an existing relationship between Experian’s marketing department and Snapchat.
“We’re always looking to meet consumers where they’re at,” Hsu said. “And for us, financial education early in life is important.”
When logging into Snapchat, users will see a list of suggested conversations, with Experian’s identified as an advertisement. When users click on it, they engage with an AI-powered system based on Experian’s EVA (Experian Virtual Assistant). EVA is a service provided to Experian members.
Hsu said the trial version begins with four predefined, suggestive prompts covering common areas such as insurance, credit, and other everyday financial topics.
“We spent a lot of time making sure credit education was the foundation of everything and imagining what people might be thinking of, whether it be budgeting, how they can save money, what type of credit card or insurance they should get.”
Hsu said the focus is on general education and not on providing personalized financial advice. Questions outside clear regulatory guardrails are met with a standard “can’t help” response
Close attention was paid to tone, empathy and even the use of emojis. The responses and format were tested with Experian and Snapchat staff, along with subject matter experts.
If this service becomes fully commercialized, Hsu said it would allow marketers to target specific Snapchat segments like gamers and sports fans with appropriate financial education, new product launches and engagement opportunities.
Hsu returned to the importance of trusted brands providing financial education on channels their target markets use and trust.
“If someone wants to learn more about finances or credit, this is something on a platform they already engage with,” she said. “Since those talks are already happening, you’d rather there be a trusted source of information for consumers to engage with so that they’re getting accurate information.”
Hsu said she had good financial habits when she came to the United States from Taiwan 30 years ago, but she had to learn the nuances of the American financial system. Perhaps this new Experian/Snapchat partnership can help others in the same situation.
“The sooner we can engage younger demographics in a format where they’re at, that’s our goal,” she concluded.