Growing up with digital technology, the Gen-Z have been creative in nearly everything that they do. They started to set the trend and make their marks on the traditional financial landscape of banking. They need accessible, personalized and digitally advanced ways of banking now more than ever as shaped by views resulting from a remarkably digital networked life.
Key Disruptive Trends Set by Gen-Z
- The Mobile-First Approach: Intuitively, growing up with smartphones, the Gen-Z expects a hassle-free process of banking that can be carried out at any time from anywhere. Traditional banks running behind in developing mobile applications and user experience will eventually lose the segment.
- Personalized Banking: Gen-Z values personalization a lot. They want all of their banking experiences to be customized according to their needs and preferences, from personalized recommendations to the service of financial advice and tailor-made products. It involves understanding customer behaviors and providing personalized solutions through data analytics for financial institutions.
- Instant Satisfaction: Compared to the previous generation, Gen-Z has shorter attention spans and expects quick results. This generation is less tolerant of cumbersome processes and waiting times. Hence, the financial institutions need to revamp their processes to offer instant services like on-the-spot transfers, loan approvals and customer support.
- Financial Literacy: Broadly, Gen-Z is the most financially literate generation so far. They expect financial education and tools through which they may guide their discretion in respect to money. Banks can differentiate themselves by offering educational resources, financial planning tools and investment advice.
- Integration on Social Media: Gen-Z has deep traction in the usage of social media platforms. The financial institutions like banks that will not integrate social media into their banking strategy will lose new opportunities for engaging customers and growing brand recognition.
- Ethical and Sustainable Banking: This generation is more civic minded than its predecessors, increasingly concerned with the ethical and sustainable operation of banks. To appeal to Gen-Z, banks need to demonstrate that they are committed to responsible investments that protect the environment.
How Big Banks Can Adapt to Gen-Z's Demands
- Investment in Technology: Major investments by large financial institutions will be required to be made in advanced technologies for Gen-Z. This will include mobile applications, data analytics, artificial intelligence and blockchain technology.
- Better Customer Experience: For Gen-Z, customer experience will mean everything from personalized, intuitive-on each and every channel-that is how banks will have to make their experiences.
- Embrace the Digital Revolution: Big banks will have to embrace digital transformation and be ready to disrupt their very own business models by acquiring new and innovative technologies or partnering with fintech startups.
- Educate and Empower Gen-Z: Banks will gain their trust and loyalty by educating them financially and empowering them to make financial decisions for themselves.
- Social Responsibility: Banks will need to demonstrate value to the continuing ethics that attract this new generation.
- Encourage Innovation: Innovation and experiments have to be encouraged by big banking institutions in order for them to retain their competitiveness.
Future Outlook
Gen-Z has made conventional banking systems think to redesign their strategies and business structure for meeting needs and expectations of them in a better way. The big banks that can't reform these emerging trends, will likely lose their relevance and market share in that process. With a key investment in technology, focus on customer experience through digital transformation and with social responsibility at the core of the business, big banks can position themselves strategically to thrive in the digital era.
