Generation Z includes anyone born from 1995 onwards. They are digital natives, having never known a world without the internet. As future consumers, it’s crucial to focus on them now. Although many Gen Z members are still young, they will influence how banks evolve in the coming years.
To attract new audiences and boost business, financial brands must adapt their marketing strategies to engage younger consumers. The COVID-19 pandemic forced many financial institutions to reduce face-to-face interactions, making it harder to connect with younger generations. Financial institutions had to find innovative ways to reach their customers, leading to a new wave of digital disruption.
How Generation Z Prefers to Bank
Younger generations have revolutionized their interactions with banks. They rely heavily on digital solutions, using mobile apps for deposits, money transfers, and checking transactions, completing their financial tasks entirely online.
What does this mean for you?
Your financial brand needs to enhance its digital capabilities, making banking activities easy and convenient. Gen Z has grown up with mobile-first technology and expects seamless connectivity, including with their banking apps. Financial brands must start acting like digital giants—Google, Amazon, and Facebook—before these tech companies start offering banking services.
Pro Tip
Use Artificial Intelligence to better adapt your services to customer preferences. AI enables streamlined interactions and essential touchpoints. Check out our previous blog on Understanding Artificial Intelligence as a Financial Brand to learn more.
Visuals, Visuals, and More Visuals
Marketing to Gen Z requires more than just a product. With vast amounts of information available, they spend more time researching and comparing offerings. “77% of Gen Z browse social media for product ideas.” Virtually everyone in this generation uses social media at least once a week and prefers visuals over text. According to Vision Critical, an aesthetically pleasing product image is a top factor in capturing Gen Z’s attention. This necessitates a content-based, visual approach in social media marketing.
A visual approach effectively tells your brand story through images and infographics. Our brains process visual information almost instantly. Our recent webinar, Leveraging Content to Build Relationships, explains in depth why relevant and engaging content is crucial to your marketing strategy and what types of content engage your customers. Visual content delivers your message faster, sparks conversations, and captures the attention of this generation.
Pro Tip
Ensure your social media is visually appealing by using the correct image sizes. View THIS handout for the latest social media best practices.
Financial Education is Part of the Journey
Banks can no longer satisfy customers by just holding their money; they need to support their customers in achieving financial goals.
Gen Z wants to learn about money, but not in a traditional classroom setting. Your financial brand should offer financial literacy courses to help young people learn basic budgeting, fraud protection, and savings strategies. Gen Z is on track to have the highest student debt of any generation, a fact they are very aware of. Educating them on building a solid financial future through debt reduction and long-term goals is a solid strategy for breaking into this market. By becoming the go-to brand for financial assistance, you position yourself as a premier choice for a demographic that will soon dominate the industry.
Pro Tip
Include Financial Education topics on your website or mobile app so they are accessible to younger customers. Offer free educational resources like a Cyber Security Awareness Kit. Check out an example HERE.
Credit unions and banks can’t afford to overlook the needs and opportunities presented by this demographic. The impact of younger generations on financial services is just beginning to be felt.
