Gen Z is reshaping the way banks market to their customers.
Generation Z is changing the future of banking due to their characteristics. Generation Z is a bunch of tech-savvy, savers who have all the information and resources they need at their fingertips.
Generation Z babies are starting to graduate college and high school and entering the workforce. With this new, young generation making a substantial amount of money, they are looking at financial institutions more closely. Generation Z is different than other generations and financial institutions must rethink the way they market to these customers.
Generation Z Banking
Gen Z, understandably, uses social media daily and are willing to get financial services from a tech company. A mobile financial service this generation has embraced is the service of person-to-person payment with apps like Venmo and PayPal. Studies have found that Gen Z is a saving generation. Gen Z is reluctant to create massive student loans like the Millennial generation or huge mortgages like Baby Boomers. Generation Z has already started saving and most of them either have their own account with a bank or have a joint account with their parents. Gen Z is more likely to choose a megabank or credit union over regional or community banks as their primary financial institution. A good strategy a financial institution could use is to offer bank branches in high schools. Most of Gen Z say their high school doesn’t offer a bank branch but they’d use one if there was the option.
Future of Financial Marketing
Some Generation Z characteristics include social media lovers, savers and tech savvy. With Gen Z being different than other generations, there must be a Generation Z marketing approach when talking to this target market. Financial markets and institutions are having to change the way they’re doing business to appeal to Gen Z. Gen Z is very tech savvy and loves social media and businesses need to keep up. Many companies have recognized this and offer financial services to Gen Z right at their fingertips. Being tech-savvy savers, Gen Z need their money banking and finance to be accessible 24/7 and instantly. This is where banks who have accommodating apps and AI, shine brightest.
Gen Z and The Future of Money
Gen Z has access to any information they want, anytime, at their fingertips. They are insightful and savvy and like access to information and resources that help them make good decisions. Gen Z is clever and industrious and needs a banking institution that is as well. Gen Z also wants to be financially independent and understands the concept of having their money work for them. Generation Z rarely touches cash because most of their payments are made electronically. Banking institutions must keep this in mind when trying to appeal to younger generations because the future of all banking will eventually be electronic.
Generation Z is changing the future of money banking and the financial system in significant ways. The financial market is also changing due to the saving attitude of Gen Z and their unwillingness to take out massive loans like generations before them. With these characteristics in mind, banks will need to reshape the way they do business with this generation and the way they market to them. Generation Z is reshaping the future of financial marketing with their technical savviness.