Are you ready for Generation Z? If you’re still looking at the Gen Zers as frisky kids, you must change your mind quickly. First of all, they’re not kids anymore. Gen Z’s oldest representatives were born in 1997, so they’ve been in the job market for a long time. Secondly, Gen Zers are boldly entering the business world and don’t want half-measures.
Gen Z is the most numerous generation that sees the world differently from boomers or millennials. They are confident and determined and will not adapt to existing frameworks. You are the one who needs to modernize your financial services if you want them to save their money in your bank. How do you do this in line with Generation Z expectations? Check out the essential conditions for a successful collaboration with a generation that has not known life without the Internet.
Gen Z – The Largest and Richest Generation
What is Generation Z? These are people born between 1997 and 2012 who now represent one-quarter of the population. Gen Z is the 2 billion people whose average annual income will be 50% higher than the boomers when they were their age.
In addition to higher earnings, Gen Zers will stand out from the other generations with significantly higher spending power. According to a Nielsen report, Generation Z’s spending power in 2024 is estimated to be around $9.8 trillion and will grow to $12.6 trillion by 2030.
Financial Education Among Gen Z
Generation Z, mostly, doesn’t remember a time without high-speed internet, computers, and smartphones. They get financial advice from social media, influencers, peers, and false high achievers who spread visions of making a quick buck.
For Gen Z, money is not a taboo topic. They are eager to discuss it with their friends and devise ideas for new investments together. At the same time, 39% of Generation Z representatives feel extremely worried about making the wrong choices with their money, so prudent financial decision-making is a priority for them.
What Are Gen Zers Planning to Do With the Money?
Generation Z are people who, at the threshold of adulthood, face cumulative inflation due to the Covid-19 pandemic. They find it much harder to become independent than previous generations. However, Gen Zers are not planning to give up. They are not afraid of work, so it is not uncommon for them to do more than one paid job. 39% of Gen Zers surveyed by EY do both main jobs and side hustles.
The Internet and social media are commonplace, allowing them to find additional activities unavailable to previous generations’ representatives. The money they accumulate allows them to live independently and save, for example, with the help of savings accounts and apps.
Gen Z Won't Be Queuing at the Bank Counter
Generation Z reps are true digital natives – the last time they stood in line at the bank was when their parents took them there as little kids. The beep-boop of an old Internet modem doesn’t tell them anything since most of them grew up in the broadband era. So don’t expect them at the counter because they’re waiting for you online.
A mobile app is the bare minimum for Gen Z customers. Young adults appreciate companies that, like them, exist in a virtual world. Any inconvenience in online banking processes that forces Gen Zers to visit a branch greatly diminishes their customer experience.
Generation Z loves the convenience of paying with their phone in stores and shopping online in a few clicks. Paying for an order or billing friends for pizza has to be seamless and available 24/7. If their favorite payment methods are unavailable, they prefer postponing the purchase rather than using different technology.
How to Win the Hearts and Personal Finances of Generation Z?
Generation Z relates their purchasing and business choices to emotions more than any previous generation. While price remains a crucial factor (32% of Gen Zers surveyed pointed to it), the values a company represents and other people’s opinions are no small matter to them.
Be Authentic
Gen Z users expect transparency and ethical practices from the businesses whose services they choose. They don’t want to identify with companies that offer dishonest deals and focus primarily on their profit.
Gen Zers derive their knowledge mainly from social media, so you should opt for simple, clear, and authentic communication to establish a presence in their minds.
Care for the Environment
62% of Gen Zs feel anxious or worried about climate change. That’s why, in addition to engaging in environment-saving initiatives themselves, they demand the same from big brands.
Banks and FinTech companies have many opportunities to implement sustainability, such as using renewable energy sources, digitizing paperwork, or upgrading legacy software solutions.
Hire Influencers
Today’s authority figures for digital natives are people who have achieved success online. Collaborating with influencers is a trend for brands in many different industries. Young people are more likely to convert to using your bank’s services if they see their beloved influencers using your banking app or other FinTech tools on social media.
Open Up for Collaboration in FinTech Software Development
Over half of UK-based banking executives find attracting the youngest customers challenging. If you want to keep an even pace in keeping up with Gen Z values to reach your financial goals, look around not only for influencers to advertise your services but also for a technology partner who will bring innovation to your business.
According to PYMNTS data, 62% of FinTechs develop apps tailored to Gen Z needs. Therefore, if you don’t have a clear vision of how to reach the largest and wealthiest generation in history, choose to team up with a technology partner that actively explores the needs of Generation Z. The result of this collaboration will be, for example, a fintech app that resonates with Gen Z needs while enhancing your competitiveness in the dynamic financial market.
In the eyes of Gen Zers, banks are seen as outdated institutions. Young people see FinTechs differently – they find the launch of biometric technology or Buy Now Pay Later as doing their best for inclusivity and maximum accessibility of payment services. Embarking on a custom finance software development partnership will show your company is tech-focused and keeping a hand on the pulse of modern trends.
Wrapping Up
Generation Z people are very concerned about their future. They don’t know what adulthood will bring them, so they manage their budgets prudently. Their financial decisions will have a colossal impact on the development of your business.
Focus on understanding their needs and provide them with user-friendly personal finance apps that will give them the joy of investing, saving, and spending their money. We at Scalo know how to make your business sigma, so contact us today and become leading-edge in the financial industry!
