Generation Z uses the app as the third most common payment method – Photo: © Alexandra Koch, Pixabay
By Martin Heinen
Generation Z, born after 1995, poses a real challenge for the financial industry. The young generation of customers is demanding, technically adept, online-oriented and looking for individual financial solutions.
Banks and savings banks have to react if they don’t offer their young customers to competitors fintech company want to lose.
A new expectation
Generation Z has a completely different attitude towards finance compared to previous generations. They are more skeptical about traditional banks and are looking for more flexible, user-friendly solutions. Generation Z expects innovative technologies, quick answers and, above all, a seamless online experience.
The changed behavior is also reflected when paying at the checkout: According to the S-Payment study “Payment Behavior of Consumers” by the savings bank group paying bills with a smartphone or another digital device is already the third most common payment method for those born between 1996 and 2010, with a share of 30 percent.
Digitized Services
Banks and financial service providers are increasingly digitizing their services in order to appeal to and retain Generation Z. However, the provision of online banking platforms alone is no longer sufficient: online presences on social media and business platforms are also required.
Generation Z values an individual, credible dialogue, the content of which is tailored to their specific needs.
Multifunctional apps
Gen Z is “always on” and therefore expects to be able to do their banking via mobile apps. Banks and financial service providers must therefore offer user-friendly apps that are characterized by easy navigation, fast transactions and real-time information. An intuitive user interface and many useful functions are also crucial in order to retain the young target group via smartphones.
Exemplary for such applications is the App from the financial service provider Swiss Life Select. It allows access to accounts from many banks within a single app, and insurance contracts can also be archived digitally with the application. This also works with policies that were not taken out with Swiss Life Select advisors.
In addition, young users benefit from a direct transfer function. Swiss Life Select promises 100% protection of sensitive data.
Financial education, transparency and sustainable commitment
Generation Z wants to understand how the world of finance works and the impact of their financial decisions. Banks and financial service providers optimize their customer loyalty if they offer suitable resources for financial education, such as online tutorials, blogs or interactive tools. Transparency regarding fees, interest rates and other financial aspects is also of great importance when it comes to credibility with young consumers.
In addition, Generation Z is aware of the social and ecological challenges of our time and values sustainability. Financial companies that are committed to social responsibility and sustainability can score points here with their commitment. Investing in green projects, supporting charitable organizations and ethical investment options are other ways to attract young people’s interest and loyalty.
2023-07-08 08:05:32
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