Success story of a Facebook group
Text: Heli Lehtsaar-Karma, MTÜ Rahatarkus
People search for advice for dealing with their everyday finances not only in books or banks but also from other people’s experiences. In Estonia we have a great example of the positive peer effect ‒ the Facebook group named „#Kogumispäevik“.
The biggest bank in Estonia, Swedbank, established „#Kogumispäevik“ a few years ago, where people could share their tips and opinions for better management of everyday money matters. The group has almost 35 000 members (as of December 2020) and it turned out to be a good tool for helping people make better decisions about their money and to keep them motivated to deal with finances.
Studying peer effects of the FB group
The proof of that is a study about „#Kogumispäevik“, conducted by Mrs Kati Voomets, Swedbank’s Head of Institute For Finances, in 2019. The aim of the research was to study the peer effects in an online saving community and to learn how these can be used for improving household financial behaviour.
The key findings made clear that individuals have joined the group not only for receiving information, but also for social integration. Respondents highlighted the role of online peers in finding motivation for achieving saving-oriented lifestyle.
The goal is to get personal finances in order
Mrs Voomets made focus group interviews with group members to find out why they joined the group and have they had any positive impact on their behaviour concerning everyday money matters.
„„Kogumispäevik“ seemed to be exciting and also a place where to get useful advice how to plan finances better.“
„I joined to get my personal finances in order.”
„I have followed posts and comments about investing. I have started investing and followed advice from the group. Group members give me courage.“
“When I joined the group I was not saving but now I do – consciously.”
“I opened a new bank account which has no bank card. As soon as I get paid, I transfer a couple hundred euros to this bank account and I won’t use it at all.”
These are only some examples of the group members opinions and behaviors but all in all the tips and advice received from the community have been incorporated in daily financial habits by quite a lot (but not all) members.
The findings of the Voomets’s study can be applied by promoters of financial education and financial sector institutions for developing similar online communities that enhance saving behaviour with the help of peers.
For example, Mrs Voomets’s colleagues from Swedbank’s Latvian and Lithuanian units have created their own Facebook groups and their conclusions reveal that the results are pretty much the as they are in Estonia.