How Gen Z is Banking
It’s a seemingly quixotic quest for financial institutions: how do you reach the younger generations and begin to create the customer of the future?
Ten years ago it was all about giving millennials what they want, and now FIs are faced with appealing to the next generation, one that has grown up entirely in a digital landscape.
A recent American Banker article notes that Gen Z desires financial products such as simplified account offerings (perhaps a checking account that encourages good savings habits, such as the one offered by SoFi); low and transparent fees; a robust mobile app; and customer service that will readily solve their problems — because it’s easier than ever to switch banks if one is unhappy.
Young customers have been amassing more funds during the coronavirus crisis, notes Tim Sheehan, CEO and co-founder of Greenlight, as quotes in the article.
“You can see how the pandemic would affect spending, because kids do a lot of in-person transactions, but the money has been going towards savings, not just sitting in their spending account,” he said. The article goes on to state that kids’ average savings account balances increased by 31% during the pandemic.