Credit Karma and rapper IDK team up to help Gen Z manage their money
FINTECH SNARK TANK OBSERVATIONS
Personal money management firm Credit Karma and rapper IDK team up to launch:
- A contest. Participants will be invited to share their personal debt journey – how they got into debt and how they are working to get out of it or how they got over their debt – for the chance to be one of five people up for grabs. $ 10,000 to be used to pay off their debt.
- Money management content. Following the competition, Credit Karma will launch “Midday with IDK,” a YouTube-based “talk show” designed to help young people manage their money. Hip-hop artists BIA, 24kgoldn, DJ Millie, Buddy and Zach Bia will be making appearances.
According to Credit Karma, the goal of the YouTube contest and show is “to help normalize conversations about money and let people know that they are not alone on their journey, while also helping a few people. to make real financial progress ”.
The IDK money management journey
When I told my wife that I was going to interview IDK for this article, she asked me what the acronym IDK stands for. I said ‘I don’t know’ to which she replied, ‘Don’t you think you should know that before you interview her? “
In order to avoid an Abbott & Costello conversation, I assured him that I knew IDK was short for “Ignorantly Delivering Knowledge”, which, ironically, is the exact opposite of how IDK will deliver knowledge. financial management content.
According to the rapper, his personal education in money management began with a video game he played when he was in grade 6 that showed the fundamentals of making money by becoming a trader. Players could earn a virtual Santa hat that gave them status in the game, which IDK compares to today’s NFTs.
IDK also credits Credit Karma for being instrumental in his financial education: “I was addicted to Credit Karma, I used it every week to learn about the importance of credit and financial literacy. “
He is not alone, moreover. In a recent consumer study I conducted for Cornerstone Advisors, 35% of Gen Z (21 to 25) and Gen Y (26 to 40) reported using Credit Karma at least once a month.
Partnering with Credit Karma is not IDK’s first foray into financial management training. Last fall, IDK gave a 10-day course at Harvard University to educate young aspiring musicians about the ins and outs of the music world.
What banks and fintechs can learn from the Credit Karma-IDK partnership
Credit Karma and IDK’s approach to reaching Gen Z and helping them manage their money provides a number of lessons for banks and fintechs:
- Provide education, not just tools. Banks seem convinced that their mobile banking platforms are all they need to engage young consumers. Cornerstone Advisors consumer research suggests otherwise. Four in 10 Gen Z and Millennials have an account manager at the institution where they have their main checking account, and 70% of them talk to these account managers at least once a month. What are they talking about? Primarily on their overall financial performance and how to improve their financial health.
- Distribute personalized content. Much of the finance related educational content on bank (and even fintech) websites is horribly bad. It’s generally generic and overly simplistic. IDK promises that Midi with IDK Content will be targeted at Gen Z with short attention spans who typically consume information visually rather than reading.
- Take advantage of social media channels. In addition to the YouTube IDK show, Credit Karma has expanded its presence on TikTok and Instagram through partnerships with Gen Z influencers like Emma Chamberlain (who recently made an appearance at the Met Gala) and digital creator and visual illusionist. , Zach King.
- Spread the word around you. IDK believes he can create a greater level of awareness of personal financial management issues by incorporating financial education directly into his music and lyrics.