iSense Solutions
PUBLICDATA

The study “Romanians’ perception of financial education”, conducted by the market research agency iSense Solutions, commissioned by BankingNews, reveals that 94% of Romanians in urban areas have heard of the term “financial education”, 8 out of 10 people consider financial education useful, whether they have received it or not, and managing the family budget seems to be the most interesting topic for Romanians, followed by savings, taxes and inflation.

Only 1 in 3 Romanians say they have received financial education in a formal environment, so there is plenty of room for growth. They give themselves an average score of 6.6 in their self-assessment of their level of financial education. The study also reveals that financially educated Romanians are more careful with their spending, more thrifty and more confident about their financial future. They are also more likely to have mortgages, more likely to have savings products such as deposits and government bonds, more likely to invest in stocks and mutual funds. Half of Romanians who have received financial education say they either learned on their own or at school. Men tend to be more self-taught than women. Seniors also say they learned such concepts at school to a greater extent. In general, Romanians learn about financial education online from online sites, social networks or the media. Social networks tend to be more attractive to young men, while mass media is more popular among men. The market research also shows that people with less access to education (low and medium education) have significantly less access to active sources of information on financial matters than people with higher education. This makes it less clear to these people who to expect financial education programs from and what information they can receive. Romanians with low and medium education are also more likely to have lower incomes and are less confident about their financial future. Essentially, the higher your personal income, the more useful financial education is seen as. Invariably, vulnerable groups can be positively impacted by CSR financial education programs.

When asked which of the banks in Romania they had heard about financial education projects, with the possibility of multiple answers, the survey respondents indicated BCR, Banca Transilvania and ING Bank as the leading credit institutions in terms of financial education projects, followed by Raiffeisen Bank and BRD Groupe Société Générale.
According to the market research, banks that have financial education projects are seen as responsible, modern and innovative. At the same time, 48% of respondents indicated that they would be more likely to recommend a credit institution that does financial education, while 47% of respondents said they trust such a bank more.

The iSense Solutions study was conducted online on a sample of 511 respondents, being representative for the urban environment in Romania, with a degree of error of +/-4.3% at a 95% confidence level. The analysis was presented by Traian Năstase, iSense Solutions Managing Partner, during the debate “Financial education, a hype or a bridge”, organized by BankingNews on October 31, 2024, World Saving Day. The discussions at the conference captured the importance of financial education in the healthy and harmonious development of Romanian society and the role that financial education can play in the process of financial inclusion.

Consumers expect brands to engage with society on complex public policy issues such as education, health or digitalization and expect local brands to have a deeper understanding of Romanian social realities, but want them to remain politically neutral. That’s the conclusion of the election-year EXPUS study conducted by Golin, through Path, in collaboration with iSense Solutions, which charts the path from consumer responses to relevant insights and opportunities to explore, while identifying potential fine lines and risks to avoid.

The unprecedented election marathon in Romania has made its way into almost all consulting sessions and brand communication plans this year. The topic is an important one given that the role of brands has evolved from purely commercial-transactional to that of active citizens. There are a number of reasons for this evolution, from the need to position companies in relation to institutional stakeholders to the need to react to consumer expectations.

“Consumers are highlighting an essential fact: engaging brands on issues and topics of public interest is no longer an option but a necessity. In an unprecedented election year, they expect more from brands than just products or services. They want to see leadership, accountability and active involvement in issues that affect their daily lives. Brands need to maintain a politically neutral stance, but they need to have a strongly committed voice in upholding people’s values and engaging with issues in society. It is time for brand citizenship tuned to the context”, said Marina Constanda, Head of Strategy at Golin.

The consumer: what they want to see and hear from brands

The data shows that 80% of survey participants believe that it is their responsibility to go out and vote in order to make their mark on the country’s future. The 4% increase in voter turnout in the summer local elections vs. 2020 confirms that Romanians are more interested in what is happening in the political and economic landscape, which has already materialized in a more consistent civic engagement.

Half of Romanians have a better opinion of brands that are actively involved in solving problems in society, including during election time. Survey participants believe that education (75%) is the top issue that brands need to address in the current political context, followed by access to healthcare (67%) and the economic situation and unemployment (63%).

People want brands in healthcare (59%), finance (50%), energy (43%), technology (40%) and retail/FMCG (27%) to be more involved in the community. They expect health networks to facilitate access to more affordable services and engage in health education, and banks to support financial education and inclusion. Companies in the energy sector are seen as essential in the transition to sustainable energy, while tech companies need to bridge the digital divide. Retail and FMCG brands are seen as best placed to support local communities and encourage responsible consumption.

“While the data from the survey we conducted with colleagues at iSense Solutions forms the basis of our analysis, we have also made a habit of bringing to the table the qualitative insights we gain with the help of the Talkwalker social listening tool. In this way, we have been able to identify and explain correlations between audience expectations and areas where brands can have a real impact, giving them a clear map of engagement opportunities beyond the usual commercial framework,” said Roxana Bleoajă, Head of Path, Lowe Group.

Romanians believe that brands should encourage voter turnout (72% for local brands and 66% for international brands) and say that such initiatives demonstrate leadership, responsibility and social involvement. Local brands are perceived as having a deeper understanding of societal issues, which implies greater social responsibility. More than half of respondents believe that brands have a positive influence when they promote going to the polls, and more than a third believe that brands are authentic when they promote voter turnout. However, almost two thirds have not yet noticed such campaigns initiated by brands.

Fine lines must not be crossed, however: consumers are ready to penalize the brand if it does not remain politically neutral and if it expresses opinions on controversial policies, including through the voice of the CEO or other company representatives. The reaction can go as far as breaking commercial ties with the brand for a third of respondents.

“Although inflation has moderated in recent months and wages have risen more than that, in terms of mood, Romanians are still on alert. Their fears are mainly financial or about personal and family security, topics that are also on the political agenda. In this context, a more active involvement of brands in community and civic communication can bring them an added image capital and trust among consumers”, said Traian Năstase, Managing Partner, iSense Solutions.

Between brand citizenship challenges and opportunities: Golin recommendations

• In an election year, brands’ acts of brand citizenship are represented by the continuation of platforms or the launch of new social engagement campaigns, with concrete effects for people, on topics and issues that are important for the community. It is important that these initiatives demonstrate real impact. Otherwise, the brand risks being penalized by consumers who are increasingly educated and wary of slippage or inaccurate messaging.
• In their social engagement efforts, brands demonstrate added relevance if they choose to invest their resources in initiatives that contribute solutions in areas that are close to the company’s core business.
• Companies need to maintain their political neutrality so that they remain relevant to all consumers as well as strategic partners, who may have different preferences.
• At the same time, the initiatives to promote voting are proof of the quality of citizenship that brands have built with consumers.

Full details are available in the full report EXPOSED in election year, which can be downloaded at: golin.ro/expus-in-electoral-year/.

EXPUS in the election year is based on data collected directly from the consumer, through a quantitative online survey conducted by iSense Solutions, processed with the support of Path, the Lowe Group unit specialized in data analysis and interpretation. The analysis is complemented by social listening tools operated by Path. The study was conducted with 812 urban participants aged 18-55, with an error of ±3.4% at 95% confidence level.

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About Golin Romania

Golin Romania is affiliated with one of the most valuable international PR networks, Golin Worldwide, a Public Relations agency that aligns its creative and data efforts with clients’ business to deliver impactful results. Together we arrive at the most valuable insights and collaborate in an inclusive environment, growing bold and results-oriented. Golin’s 1,700 global employees operate out of more than 50 offices around the world, allowing us to come up with complete solutions for multiple markets and for regional or global communications programs. Golin was named Global Agency of the Year at PR Week 2021, 2020 and 2019 and PRWeek U.S. 2024. It was also named Agency of the Year in the North America region at PRovoke Media 2021, Midsize Consultancy of the Year at SABRE EMEA 2023 and Research & Measurement Team of the Year at the AMEC Awards in 2023, 2022, 2021, 2020 and 2019. Golin is the first PR agency to win Gold and Silver for creativity at the Cannes Lions Festival in 2019, to become the first PR agency to win Grand Prix at Cannes Lions in 2024.

In Romania, Golin is part of one of the most important communication groups, the Lowe Group, together with MullenLowe (integrated marketing and communication agency), Initiative (media), Medic One (medical communication) and Path (unit specialized in data analysis and interpretation).

For more information visit golin.ro or the Golin Romania Facebook page.

About Path

Path is the Lowe Group’s data analytics and interpretation unit, created in response to the need for businesses to adapt quickly to the speed at which consumer behavior changes. Path integrates an extensive suite of local and international tools and data sources, available across the group’s network of agencies, addressing all communication disciplines.

About iSense Solutions

iSense Solutions – The Modern Consumer Company – uses the most innovative methods to explore and analyze the modern consumer. Founded in 2014, the company offers comprehensive market research services and brings a mix of innovation and efficiency to clients.

This fall, iSense Solutions is hosting “Consumer Pulse 2024: Innovations and Insights with iSense Solutions,” an event that will explore market transformations and new trends in consumer behavior. On September 19, 2024, we are honored to welcome three distinguished guests who will share valuable insights from their areas of expertise:

• Dan Suciu, Director of Communication and Spokesperson of the NBR, will address the macroeconomic outlook and its impact on the consumer market.
• Vesna Hajnsek, Senior CMI Manager at Groupe L’Occitane, will discuss how consumers are adapting globally and what emerging trends are influencing buying behavior.
• Ioana Cecilia Popescu, Dean of the Faculty of Marketing at ASE Bucharest, will bring an academic perspective on how consumption is evolving on the local and international market.

A story about the demanding consumer and economic challenges

In a changing world, the Romanian consumer is becoming more attentive and demanding. At the event we will take a detailed look at these changes. According to research by iSense Solutions, the percentage of consumers who choose to cut corners on product quality to save money fell by 10% in 2024 compared to the previous year. This shift reflects a new mindset – consumers are no longer just looking for lower prices, but also value and quality for the money they invest.

This transformation in consumption behavior is closely linked to the current macroeconomic context. According to NSI data, Romania’s economy recorded a modest GDP growth of 0.7% in the first semester of 2024 compared to the same period of 2023, mainly supported by household consumption (+3.7%) and investment (+1.4%). However, foreign trade had a negative contribution of -3.5%, due to the increase in imports and the decrease in exports.

Annual inflation was 5.1% in August 2024, stabilized in recent months, but below the 6.5% annual average over the past 12 months. These dynamics influence how consumers plan their purchases and prioritize quality.

Against a challenging economic backdrop, Romanian consumers are becoming more selective and value-conscious. The event aims to explore these changes and provide insights into how consumer behavior is evolving in an era of economic uncertainty Traian Năstase, Managing Partner iSense Solutions, says Traian Năstase. Those who wish to attend the event are kindly requested to send an email to office@isensesolutions.com, due to limited places, and we will confirm your registration.