How Gen Z is Bringing Innovation to the Banking Industry
According to Forbes, Millennials account for the bulk of new loan demand — expected to continie for the next five to six years. Gen Z will age into the prime 25- to 40-year-old lending demographic next. Although many in the Gen Z group are still kids, they set the stage for the evolution of banking. Despite many being under-age, this generation makes up an increasing number of banking customers. As time goes on, their importance is going to increase in the number of accounts and business potential opportunities.
Marketing to Gen Z
Generation Z is the generation following millennials — born from 1997 to 2012. This generation was raised on social media. Banks must use innovative new approaches to traditional banking if they want to appeal to Gen Zers. If legacy institutions and fintech want to capture Gen Z’s attention, learning their main priorities and interests is a must. Time is also of the essence. A 2019 study shows Gen Zers have an attention span of about 8 seconds, half that of millennials. When marketing to Gen Z, you don’t have much time to grab their attention and make an impact before they’ve lost interest completely.
What Matters to Gen Z in Banking
A 2022 survey conducted by the Financial Brand revealed the four most important factors for Gen Z in choosing a financial service provider are:
- Trust and security of personal data (as well as data protection for digital assets)
- Rates, products, services, and special offers (sign up bonuses)
- Ability to communicate with a person for customer support (virtual chat is preferred over phone support)
- Digital experience (automated financial guidance and virtual assistants for managing money)
Since 99 percent of Gen Zers use a banking app for mobile banking (Chase 2021), apps aren’t optional- they’re a necessity. Generation Z has grown up in the era of online banking, numerous payment apps, and various digital investing platforms. This generation just hasn’t known to bank any other way. Gen Z wants convenience and features readily available to them in one stop. They don’t want to go through the process of logging into a browser or having to stop into a bank branch. It’s no longer enough for a financial firm to offer a mobile app that works seamlessly and quickly. Gen Z expects to be able to make transactions happen on their phone in as few taps as possible. They want to enter as little information as possible — they don’t want to have to type their name a second time. Although studies show they do want security and identity protection, they really do not want to be inconvenienced with the process of two-factor authentication.
Where Fintech Companies Excel
Gen Zers are also looking for highly personalized experiences — meaning they don’t want to use products designed for the masses. Unlike larger corporations, fintech has had success in appealing to Gen Z because they are able to detect patterns in what their users are doing and use that to help build a rapport and establish a sense of trust. In a 2021 survey, 51% of Gen Z consumers named a fintech company as their most trusted financial brand compared to 23% who named a national bank. Fintechs know their financial product doesn’t just have to function properly or fill a need that people want. It needs to reflect the user’s identity.
Simplypay — Modern Services
Simplypay is an app that offers the service options Gen Z desires most. The platform was built with the customer’s experience in mind. It’s all about offering multiple services in the most convenient way. Simplypay allows users to make all payments — domestic and international — from one platform, simplifying payables. Instead of having to use a bank account, users can use their credit or debit cards. This is a huge perk for those Gen Zers that don’t want to go through the hassle of looking up their bank account number and would rather use their stored credit cards. No setup fees, no processing fees, and no monthly fees.
Check out all the innovative services Simplypay has to offer by visiting our website. Help your network learn more about the future of banking by sharing this content.
