People Born in the Netflix, Youtube, and TikTok Era Encourage Banks to Seek New Customer Touchpoints
Up to 80% of Gen Z smartphone owners are already using mobile banking.
Generation Z refers to people born in 1997 - 2012, when the Internet was fully integrated into our everyday life. They are technologically savvy and adventurous, although they are still quite young (9 - 24 years old). Most get their mobile phones before the age of 10, and have social media accounts from the age of 13.
As you know, in Ukraine you can get a debit payment card from the age of 14, and you can use the credit limit from the age of 18. Until the specified age is reached - with the consent of the parents or guardians. Such a gap of several years between independent decisions related to smartphones and finance, according to Betsy Grasek, an analyst at Morgan Stanley, is a lost opportunity for banks. Therefore, it is critically important for banks to invest in teen banking. Moreover, 50 - 80% of smartphone owners in this age group already use mobile banking. To win Gen Z loyalty, financial institutions need to look for new ways to attract customers.
The digital generation prefers sending text messages over phone calls.
Many Gen Zers are now trying their hand at being employees. As it happens in the midst of the financial crisis caused by Covid-19, the experience could render them financially risk averse. Therefore, all kinds of initiatives aimed at improving financial literacy will increase their loyalty to banks.
To appeal to the digital generation that prefers texting to phone calls, financial institutions must provide impeccable chatbot customer service. Therefore, they will have to invest in artificial intelligence and other technologies that can solve issues without a phone call without any problems.
Zafin's research revealed an interesting fact. Nearly three quarters of Gen Z consumers would like to be able to get all the financial services they need from one bank. This indicates the need to consolidate most of the financial transactions of users by banks. However, adding digital features to legacy offerings isn't enough for that.
To attract the Z people, banks must offer a personalized user experience.
Due to their technical savvy, the Z-People tend to be impatient with digital programs that make their lives even harder, according to Ahmed Khidhir, an expert at Temenos. They prefer to use sites and applications that are able to meet their needs and preferences, as well as provide personalized services. To satisfy these consumers, banks will be forced to offer a personalized user experience.
You can use machine learning and digital analytics to study customer habits, preferences, and predict future needs. They will allow predicting financial and non-financial events, such as next payments; suggest setting savings or borrowing targets based on estimated cash flow.
The expert also draws attention to the fact that Z-people, unlike previous generations, are interested in the Internet not so much in access to information as in the opportunity to have fun. According to Ahmed Khidhir, most digital banking software today does not create an emotional connection with the user.
To help establish an emotional connection, according to the expert, it is possible by introducing features that amaze consumers. A prime example of this approach is Tesla's decision to add wing doors to its vehicles.
Another way is to interact with audio and video chats, using interactive tools such as calculators, games, surveys or chat bots. These tools can be more successful in grabbing the attention of the digital generation than traditional banners. Keep in mind that Z-people are more likely to perceive information in the form of short 1-3 minute videos. This should also be adopted by banks that want to effectively distribute marketing content.
To realize Gen Z's desire for more personalization, banks need to roll out more reward programs such as cashback, fee-waiver, a free Spotify account, VIP concert tickets, and gadget insurance. In addition, it is worth fantasizing about rewards associated with achieving financial goals. For example, by offering customers - football fans who paid their debt on time - the chance to win a trip to the Super Bowl. There are many options, the main thing is creativity, which Generation Z will certainly appreciate.
Up to 80% of Gen Z smartphone owners are already using mobile banking.
Generation Z refers to people born in 1997 - 2012, when the Internet was fully integrated into our everyday life. They are technologically savvy and adventurous, although they are still quite young (9 - 24 years old). Most get their mobile phones before the age of 10, and have social media accounts from the age of 13.
As you know, in Ukraine you can get a debit payment card from the age of 14, and you can use the credit limit from the age of 18. Until the specified age is reached - with the consent of the parents or guardians. Such a gap of several years between independent decisions related to smartphones and finance, according to Betsy Grasek, an analyst at Morgan Stanley, is a lost opportunity for banks. Therefore, it is critically important for banks to invest in teen banking. Moreover, 50 - 80% of smartphone owners in this age group already use mobile banking. To win Gen Z loyalty, financial institutions need to look for new ways to attract customers.
How to surprise a generation that knows everything about gadgets
One of the steps for attracting digital people by banks is teenage accounts. They allow young users to learn to control their own budget, although this will require parental signatures. However, banks are already offering them, but not as often as we would like.The digital generation prefers sending text messages over phone calls.
Many Gen Zers are now trying their hand at being employees. As it happens in the midst of the financial crisis caused by Covid-19, the experience could render them financially risk averse. Therefore, all kinds of initiatives aimed at improving financial literacy will increase their loyalty to banks.
To appeal to the digital generation that prefers texting to phone calls, financial institutions must provide impeccable chatbot customer service. Therefore, they will have to invest in artificial intelligence and other technologies that can solve issues without a phone call without any problems.
Zafin's research revealed an interesting fact. Nearly three quarters of Gen Z consumers would like to be able to get all the financial services they need from one bank. This indicates the need to consolidate most of the financial transactions of users by banks. However, adding digital features to legacy offerings isn't enough for that.
To attract the Z people, banks must offer a personalized user experience.
Due to their technical savvy, the Z-People tend to be impatient with digital programs that make their lives even harder, according to Ahmed Khidhir, an expert at Temenos. They prefer to use sites and applications that are able to meet their needs and preferences, as well as provide personalized services. To satisfy these consumers, banks will be forced to offer a personalized user experience.
You can use machine learning and digital analytics to study customer habits, preferences, and predict future needs. They will allow predicting financial and non-financial events, such as next payments; suggest setting savings or borrowing targets based on estimated cash flow.
The expert also draws attention to the fact that Z-people, unlike previous generations, are interested in the Internet not so much in access to information as in the opportunity to have fun. According to Ahmed Khidhir, most digital banking software today does not create an emotional connection with the user.
How to establish an emotional connection with a client
To attract Gen Z, banks need to expand their reward programs.To help establish an emotional connection, according to the expert, it is possible by introducing features that amaze consumers. A prime example of this approach is Tesla's decision to add wing doors to its vehicles.
Another way is to interact with audio and video chats, using interactive tools such as calculators, games, surveys or chat bots. These tools can be more successful in grabbing the attention of the digital generation than traditional banners. Keep in mind that Z-people are more likely to perceive information in the form of short 1-3 minute videos. This should also be adopted by banks that want to effectively distribute marketing content.
To realize Gen Z's desire for more personalization, banks need to roll out more reward programs such as cashback, fee-waiver, a free Spotify account, VIP concert tickets, and gadget insurance. In addition, it is worth fantasizing about rewards associated with achieving financial goals. For example, by offering customers - football fans who paid their debt on time - the chance to win a trip to the Super Bowl. There are many options, the main thing is creativity, which Generation Z will certainly appreciate.
