Working over content creation (Yes, I do that too) and all the research related to the topic expand my horizons and this is part of my job that I admire so much.
What is the inspo behind this topic – We were at the Future Banking in Romania when Roxana Petria shared her thoughts on Gen Z and later generations. Her example was about her own kids who will probably never visit a bank branch and that stuck in my mind (6+ months - as you can see for quite a long time :D), so this here is a sequel to that speaking session, my brother whos first interaction with a bank was a few weeks ago and the blog series I prepared for CSoft's (part one is out!).
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With the oldest members of Generation Z now entering the workforce and starting to build their financial futures, banks are increasingly looking to understand and engage with this important demographic. Generation Z, defined as those born between 1997 and 2012, are a tech-savvy and socially conscious group of consumers who have grown up with the internet and are accustomed to having information and services available at their fingertips. As such, their banking habits and preferences differ from those of previous generations, and banks need to adapt to meet their unique needs.
One of the key reasons why banks need to focus on Generation Z is that they represent a significant and growing market. By 2025, Gen Z is expected to account for 27% of the global population and hold up to $33 trillion in assets (McKinsey & Company). This demographic is also known for their brand loyalty, with 63% of Gen Z preferring to stick with brands they like (KPMG). Therefore, by building strong relationships with Gen Z now, banks can establish long-term customers who will continue to use their services well into the future.
To engage with Gen Z, banks need to understand their unique banking habits and preferences. 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.
Here are some statistics I gathered and their sources:
Banking Preferences:
40% of Gen Z prefer to use online banking as their primary method of managing their finances (Varo Money).
63% of Gen Z believe that a bank's mobile app is essential (Business Insider Intelligence).
Loan Usage:
23% of Gen Z have taken out a personal loan (Experian).
11% of Gen Z have taken out a student loan (Experian).
9% of Gen Z have taken out an auto loan (Experian).
Bank Card Usage:
58% of Gen Z use a debit card as their primary payment method (Bankrate).
18% of Gen Z use a credit card as their primary payment method (Bankrate).
71% of Gen Z have at least one debit card (Bankrate).
55% of Gen Z have at least one credit card (Bankrate).
Financial Goals:
59% of Gen Z prioritize saving money as a financial goal (Bank of America).
50% of Gen Z prioritize paying off debt as a financial goal (Bank of America).
29% of Gen Z prioritize building credit as a financial goal (Bank of America).
Financial Concerns:
66% of Gen Z are concerned about being able to afford college (Morning Consult).
50% of Gen Z are concerned about not being able to save enough money (Morning Consult).
41% of Gen Z are concerned about not being able to pay off debt (Morning Consult).
These statistics highlight some key trends in Gen Z's banking. By understanding these trends, banks and other financial institutions can better tailor their products and services to meet the needs of this important demographic.
