Generation Z (gen Z) presents a new breed of consumers for financial institutions. Technologically-savvy and highly-educated, they bring a new mindset and type of consumerism for financial institutions to grapple with. Here are 3 areas in digital banking that are likely to be reshaped by this new generation:
- Semi-autonomous digital banking – gen Z consumers prefer to use websites and apps that can predict their needs and preferences to deliver a personalized service tailored to their preferences. This will likely lead to a proliferation of digital banking applications that can provide a highly-personalized and semi-autonomous experience that learns individual customer’s habits, preferences and anticipated future needs via sophisticated machine learning and digital analytics tools.
- Emotional-level connections – for gen Z, the digital world is primarily not about accessing information and utility; rather, it is about entertainment and emotional gratification. As such, we are likely to see financial institutions more purposefully design digital banking apps to inspire a deeper emotional connection. By integrating non-financial lifestyle experiences that connect with gen Z aspirations, values and needs (e.g. helping find and contribute to environmental causes and contributing) into digital banking, financial institutions can create a more emotional engagement.
- Experiences replacing marketing banners – gen Z has developed a strong sense of skepticism and blindness towards online advertisements. To capture gen Z’s attention, we are likely to see a shift in digital banking from displaying marketing banners to offering experiences and entertaining interactions to deliver marketing messages. One such way of offering experiences via digital banking is by utilizing interactive tools such as calculators, games, customer feedback forms, questionnaires and chatbots.