The news: The Trump administration announced on September 15 that a TikTok sale deal has finally been reached with China after months of uncertainty, allowing TikTok to remain operational in the US.
Why this matters for banks: TikTok has been a popular platform for financial institutions (FIs) to build relationships with Gen Zers because:
The administration’s original plan to potentially ban the app in the US—or require a US-only version, which could have changed the dynamics that have been working so well for advertisers—would’ve disrupted effective advertising strategies.
Social media—TikTok included—has been a major source of income for Gen Z banking customers in particular. Changing the environment and parameters of one of the major social media platforms they rely on for income could have set many of them back financially.
What FIs should do next: TikTok’s future in the US isn’t as uncertain as it recently was. FIs that set aside plans to build up their TikTok following or reach target customers via campaigns or finfluencer relationships should now move full steam ahead on TikTok.
This is the moment to restart those efforts with a renewed focus on authenticity and education. FIs should create specific content that speaks to Gen Z’s financial realities.