FIs can cater to their needs by meeting them on their own terms. Young adults are much more open than previous generations perhaps due to the proliferation of social media and are showing signs of adopting the principles of open banking which makes it possible to share financial information across multiple organizations allowing for a more connected financial experience.
Collaboration is the name of the game and FIs are increasingly partnering up with fintechs and big tech companies to give people the connected financial experiences they are craving.
Even so, human contact is still important. According to a study from Cornerstone, around half of generation Z and Millennials say it is important to be able to arrange an appointment with their bank’s branch through their mobile apps. More than six in ten think it's important that a mobile banking app seamlessly reach the contact center.
While much of the financial sector’s digital strategy focuses on minimising the need for human contact, processes will need to be designed which can seamlessly integrate human assistance when customers want it.
Automation will become the name of the game to enhancing the consumer journey. The self-service channel instils choice and flexibility, but it also allows the high-skilled bankers on premise to do what they do best: forge relationships, advise and upsell. FIs should leverage new branch formats and automation to blend the physical and the digital to meet Gen Z where they are and want to be.
Generation Z wants more personalized financial products which cater to their desire for authentic and educational experiences. People want to learn and discover new options for managing their finances. Customers are thinking about their needs rather than about products which means FIs need to become facilitators which provide financial support rather than just holding money.
In providing this journey personalization, big data will become more important. Like all businesses, FIs are capturing more data about their customers than ever before. This can help them identify trends, but also give people more individually tailored financial solutions. By using data such as credit profiles, account information and transaction histories, they can design products and services shaped around each person.
Related: Top banking trends to watch in 2022
Big data is already having a significant impact in the world of loans. While lending decisions were traditionally shaped by very basic pieces of information — such as a credit score — financial institutions are learning how to harness multiple data sets to provide a more nuanced and accurate vision of a person’s credit worthiness. This is making it possible for them to provide more services to people who might previously have felt excluded from financial products such as young people who might not yet have built up much of a credit history.
It's also worth thinking about the impact the last couple of years have had on this generation’s mental health. They are becoming known as the lockdown generation. Just at the point many have been entering transformative periods in their lives, in which they will have some of the first life experiences which will shape their development, they have been hit with unprecedented restrictions which have affected their economic and social development.
What impact this will have is hard to say at the moment, but it is possible that they will need more guidance and advice than might be normal for people of their age. Products which integrate education and personalisation to deliver experiences which are more tailored to their own experiences.