January 21, 2021

The Future of Smart Banking With Gen Z In Mind

With the new generation’s numerous changed interests, smart banking is another vital transformation they look forward to. So, when Gen Z are the bank customers in the future approaching us very soon, it’s crucial to know everything about smart banking that our smarter generation would love.

What should banks focus on when trying to attract this demographic?
We need to accept they are young. Some of the Gen Z are even in school. Banks can consider opening up mobile bank branches or pop-ups near or in the schools. The students can be provided with financial counseling when they open an account in your bank.

Gen Z should know a bank for their free education about all the necessary details, from managing credit to budgeting for the gap year. Banking should be made available online, and studies should be fun with drinks and food after branch hours.

It is beneficial to recruit Gen Z-ers. You can hire this generation rather than the young Millennials to mentor your future staff on handling criticism and messaging. Nothing is more helpful than first-hand knowledge from the Gen Z itself of what does and does not work for this group.

This generation is very social. The Center for generational kinetics and their research shows that Gen Z likes sharing the amount they are saving in their bank account with their mates. The bank needs to consider the rules of financial confidentiality. They should also throw light on how Gen Z customers will want to share their financial experiences. One can do it within the branch or online.

We should be brilliant about measuring and monitoring digital experiences. The banks must also consider how the Omnichannel strategy is reliably and smoothly delivered. We also know that Gen Z customers are called “screenagers.” It is for an excellent reason as they interact through screens all the time. These people are hypersensitive and act immediately to anything they don’t find right.
What else should banks consider?
What keeps Gen Z driving their finance well is saving money and not spending recklessly. The banks need to develop innovative savings services and products that automatically save money into bank accounts for dining and clothes.

Gen Z could also become the first generation to give up on credit and debit cards and manage credit and cash on their smartphones. So, banks should consider how the self-service machines present in bank branches interact with Gen Z’s smartphones for accessing and authenticating services, like updating digital wallets.

When banks begin to offer access to a live person and a bank branch to train Gen Z, it becomes very easy for them to learn about banking. Training the bank colleagues with appropriate consultative skills for Gen Z is essential.

Your bank staff becomes vital brand advocates for this generation to regard as authentic and identify with. One can personalize one-on-one services in the branch systems.

Banks can use YouTube as a fantastic way to teach Gen Z all about smart banking and financial matters as this new generation loves watching videos. If you present before them how-to video advice, it can be helpful.

One can also consider offering face-to-face financial advice to Gen Z over live video conversations. Responsibly using and collecting data to understand new customers’ needs who have a vast amount of data to share about themselves is crucial.
What is smart banking, and why is smart banking important?
In an era of every device turning smart, from smartphones to smart refrigerators, those born after 2010 have never seen manual systems and phones without social networking sites and cameras. Smart banking is a quick and easy way of transferring money from one account to another and knowing all about our bank accounts in no time.

Through the system of smart banking, all the branches across a country or internationally are connected. So, the millennials or Gen Z can access their money from their nearest branch. However, one can do most of the bank work with the smartphone in their hand. With a few clicks and taps, the transaction can become visible on their phone screens. They can transfer money to any account in seconds and receive it in the blink of an eye.

Apart from transactions, there are many other benefits the new generation can get as a result of smart banking systems. Life becomes comfortable when you can solve your queries by dialing numbers and conversing online rather than standing in queues for hours in the branch. Smart banking is important because the world is developing, and Gen Z would have less time to waste.

Convenience and quickness are the priorities of this new system. 24/7 customer service is an excellent example of speed. Even if they visit a bank branch for something, they want it to be done quickly. Reduced service fees and better loan costs are also parts of smart banking.
How can banks attract millennials/Gen Z?
Gen Z’s characteristics can justify how banks must have a physical strategy for their branch and smart online banking. Now the question is if banks can make their branches more comfortable for Gen Z and attract them.

Physical retailers can help banks learn some crucial lessons. Most people believe that younger people are rejecting mortar and brick retail. Yet, in one of the latest studies, it has been shown that around 76 percent of millennials or Gen Z feel it’s more comfortable to shop through physical stores than going online and selecting from the items available in many physical stores.

It is vital to understand for banks what makes it comfortable for Gen Z to go for physical shopping. The same findings can also be applied in bank branches to run by redesigning them. For example, Gen Z is great at socializing. They see and buy the merchandise in no time.

In other words, they want immediate service and fulfillment of their needs. Banks can be reconfigured into social hubs for Gen Z. Banks can train their staff to provide financial assistance with easy decisions and quickly. They should confirm all the financial products within the bank branch.

Capital One in the United States is opening cafes to help Gen Z better understand finances rather than sitting in bank cubicles for hours. Another fact to note while considering smart banking is that Gen Z uses their phones for shopping. Banks must ensure that they have convenient apps for this new generation to use and get help quickly.
What are the most used features and services that banks provide by Gen Z?
Digital Uptake for Gen Z
Anecdotal evidence and research have shown that the bonds shared between the small business customers and retail of incumbent financial institutions have become strong during the pandemic (COVID-19) period. Security and safety is part of the reason. But the more significant part is the ability for many smart banking interactions that can and should be handled digitally. If not entirely online, they should at least be accessible from the nearest branch of a Gen Z.

Nearly 88 percent of bank consumers believe that it is vital for their banks or financial institutions to provide them with relevant recommendations based on their behaviors and product usage, similar to what Netflix and Amazon do.

Consumers know that banks have access to vast amounts of customer data. They also have several tools to know everything about the data and can derive actionable insights. In this case, the smart banking experience of a customer is one of the most personalized business interactions of the bank. Hence, another feature to add for the convenience of Gen Z is personalization.

Most Valued Benefits For Gen Z
There are several benefits to keep the Gen Z relationship with banks a perfect one. Fee waivers and cash backs are vital for the new generation.

Younger consumers of Gen Z are more inclined towards cash and getting cash backs, whereas older generations prefer fees waived. Hence, keeping in mind the Millennials and Gen Z, cash backs are essential. Smart banking can include ways to attract the new generation through what they prefer the most.

Goal-Oriented Incentives
Around 79 percent of Gen Z and 86 percent of Millennials prefer switching to a bank or financial institution that rewarded them. They wish to be awarded for achieving and defining financial goals. This Gen Z also wants to expand their relationship with a current service provider that provided them with goal-oriented incentives. Some examples of goals in a smart banking era can be paying off student debt, saving for a down payment on a home, and attaining a retirement goal.
This generation is born after 2010, and they are emerging in a world of the Internet where everything is getting online. Even the offline stuff is getting amalgamated with the online. No wonder they would expect smart banking, something absolutely convenient. From transferring money with a tap to receiving money in an instant, smart banking is all about becoming tech-savvy and a part of the fastest global generation.

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Genzup Public Relations