What does Gen Z want in a bank? (2024)

What does Gen Z want in a bank?

Gen Z attitudes toward money and finances are sometimes aligned with and sometimes starkly different from those of older generations. Research suggests that Gen Z trusts traditional banks more to secure their data and needs digital services to be exceptional to retain their customers.

How to attract Gen Z to banking?

Focus on Experience and Value

While there are many ways to build trust, focusing on the customer experience and value first will earn you customer trust. Gen Z are largely very aware of organizations as organizations and less likely to trust corporations than even millennials.

What are the Gen Z trends in finance?

Key Takeaways. Gen Z adults are scraping by: Roughly two in five say they're barely scraping by (25%) or completely underwater (13%) financially. Debit cards and cash are king: 37% of Gen Zers say debit cards are their primary payment method for apparel, but brands should monitor rising BNPL usage.

What are Gen Z most interested in?

Gen Z's favorite social networks for shopping discovery are TikTok and Instagram. Gen Zers usually watch videos and engage with influencer content creations to find new products and brands.

What generation Z wants from financial technology?

Recognizing the importance of financial literacy, especially for Gen Z, fintech companies offer educational resources and tools to help users. These include content on basic financial concepts like budgeting, saving, and investing, provided through articles, videos, and interactive features.

Why banks should target Gen Z?

The statistics show that Gen Z prioritize online banking, saving money, and paying off debt, while also being concerned about affording college and saving enough money. By tailoring their products and services to meet these needs, banks can build trust and loyalty with this important demographic.

How do I attract people to my bank?

Strategically position your brand where potential customers are most active, maximizing visibility and engagement. Crafting compelling content that highlights the distinctive features of your banking services and emphasizes technological advantages lays the foundation for effective customer attraction.

Are Gen Z financially savvy?

That means they're much less likely to overspend and risk going into debt, but also less likely to make the occasional stretch purchase. With that said, Gen Z is a credit-friendly generation--they're just careful about falling into debt traps.

What are the top 3 categories that Gen Z spends its money on?

Are Gen Z financially minded?

According to recent data from a 2023 Pew Research Centre survey, Gen Z is more financially independent at a younger age than prior generations. While still in school, a sizeable proportion of Gen Zers work part-time, freelance, or have side hustles.

What is Gen Z source of income?

More than one-in-10 (13%) Gen Zers currently earn income through social media, including content creation (53%), TikTok Shop (41%) and brand deals (33%). Of those who earn income through social media, more than a quarter do so as a full time job (26%) and more than half (56%) do so in addition to their full time job.

What products does Gen Z buy the most?

Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.

How old are Gen Z in 2024?

Gen Z is the generation born in the 15-year span from 1997 to 2012. In 2024, they will turn between 12 and 27 years old. This is the newest generation to gain influence in the world, from joining the workforce to being old enough to vote.

What are the financial behaviors of Gen Z?

Z sees money as a way to make life more enjoyable. They are more likely than any other generation to use their money to buy experiences rather than things. This may be because Gen Z grew up during the Great Recession, which taught them that material possessions could be taken away at any time.

What makes Gen Z want to buy?

In fact, 97% of Gen Z say they use social media as their number one source of shopping inspiration. For Gen Z, your social media is the home of brand persona and identity, and it can also be a crucial shop front. 72% of Gen Zers have said they would more readily purchase from a brand they follow on social media.

Why is Gen Z struggling financially?

Gen Zers face greater obstacles to financial success

Not only are their wages lower than their parents' earnings when they were in their 20s and 30s, but they are also carrying larger student loan balances.

What is next generation banking?

Next-generation Core Banking (also known as Core Banking Platforms) features an open, flexible, and scalable architecture, facilitating interaction between financial services and technology players.

What are customers looking for in a bank?

Consumers consider just about every banking feature important. They look for accounts with low fees and competitive interest rates. They want their money to be both secure and easy to access. They expect quality customer service and a good brand reputation.

How can I make my bank more interactive?

Gamification can transform tedious or unexciting banking tasks into enjoyable and entertaining activities. By applying elements such as storytelling, visual design, and interactive features, gamification can make financial processes more enjoyable and interesting.

How do banks attract new customers?

Don't eliminate the branch

Branches are a great tool to attract customers who want initial in-person meetings for their financial needs and a representative to talk to about complicated or private financial inquiries. Branches also offer a very tangible opportunity to increase your banking customer experience.

What should Gen Z invest in?

They Like Technology and Sustainability. Compared to other generations, Gen Z is more likely to invest in companies with positive environmental impacts or social causes they care about.

Is Gen Z struggling?

Gen Zers are reporting higher rates of anxiety, depression, and distress than any other age group, according to a 2022 McKinsey study. The same study found that Gen Z was the least likely cohort to seek out medical care for those conditions because behavioral health care is too expensive.

Which generation is the wealthiest?

Millennials stand to become the richest generation in history, after $90 trillion wealth transfer | CNN Business.

What do Gen Z do for fun?

People are confused about what Gen Z does for fun. Some are worried they don't have fun at all. Gen Zers say they spend a lot of time in the house reading, playing games, and crocheting. Rising costs and high levels of loneliness may be behind these changing habits.

What does Gen Z spend most of their time doing?

The UK-focussed report revealed that millennials spent a still surprising 8.5 hours a day reading, watching, creating and engaging with content through their devices. But for Generation Z that figure jumps to a shocking 10.6 hours of engaging with online content every day.