The top way financial services organizations can improve digital banking capabilities for Gen Z – those consumers between the ages of 18 and 23 – is to enhance the mobile channel and provide faster payments and money transfers, according to research from BAI, a nonprofit independent organization that delivers the financial services industry’s most actionable insights.
As part of the BAI Banking Outlook program, BAI surveyed consumers over the course of several months and identified several interesting insights into the unique banking preferences and attitudes of Gen Z. This generation specifically indicated an overwhelming support for online, mobile and self-service channels, with 74% preferring these channels. However, despite the preference for digital banking options, Gen Z is also the generation most willing to pay for more customized services or financial advice.
Additional highlights from the Gen Z research include:
- Nearly half, 48%, of Gen Z respondents indicated their willingness to pay for additional services.
- Gen Z engages more with their financial services organizations than other generations, averaging 68 monthly interactions. The most common channel is mobile banking with 11.2 monthly interactions.
- Gen Z also has more branch or drive-up interactions per month than other generations.
- Gen Z desires faster payments or transfers followed by automated savings as their top choices for how financial services organizations can help them manage money.
- 67% of Gen Z currently use the same financial services organization as their parents, but more than two-thirds are willing to switch if they find one that is more innovative.
“For true breakthrough with Gen Z, financial services leaders will need to listen closely to what this new generation prefers or risk becoming extinct to the next best innovative competitor,” said Karl Dahlgren, managing director at BAI. “While Gen Z is still establishing itself in the workforce, it would be a mistake for leaders to assume this generation has similar preferences and expectations to Millennials or Generation X.”
For more information about the study, listen to BAI’s podcast, “Gen Z is Fond of Fintech, but They Like Tellers, Too,” for an in-depth discussion.
As a nonprofit, independent organization, BAI has delivered the financial services industry’s most actionable insights for more than 95 years, enabling leaders to make smart business decisions every day. We’re passionate about the trusted information and powerful tools that provide leaders with the clarity and confidence needed to drive positive change and move the financial services industry forward. That’s why we provide in-depth, proprietary research to 30 of the top 50 banks and numerous others, support more than 2,000 financial services organizations with compliance and professional development training, provide trusted, relevant thought leadership through BAI Banking Strategies reports, podcasts and webinars, and offer specialized events and programs. For more information, visit http://www.bai.org.