Banks targeting Gen Z must consider generation holistically | Thames

Generation Z, or the generation that currently spans the ages of nine to 24, has a huge spending power of more than 140 billion dollars — and it’s only growing as more Gen Zers enter the workforce.

As a result, fintechs and neobanks are deploying offers restoration specifically to younger customers, such as smart cards, “end-influencers” and courier banking.

“They are the future generation,” says Ammar Kutait, CEO and Founder of W1TTY, a neobank targeting Gen Z. “25% of the global workforce will be generated by Gen Z in the next two years, so the signs are obvious. for us why we should target them.

But most fintechs are still founded by millennials – so are they really providing Gen Z with what they really want? We turned to the data, the experts, and the Gen Zers themselves to find out.

Personalization

Nafeesa Jafferjee, co-founder of Quirk, a financial advice app for young people, said subdued neobanks often fail because they don’t specifically cater to Gen Z and their individual needs.

“Neobanks and banks [generally] are always ‘one size fits all’,” she says. “But with the younger generation – because they’ve been exposed to technology early on – it’s like, what can they do for me and my lifestyle.”

W1TTY’s research echoes this, finding that 64% of Gen Zers seek a personalized banking experience “with product and service recommendations tailored to their unique banking circumstances.”

Jack Dunn, for example, Gen Z Product Manager, says he is “quite satisfied” with his neobank because it offers many features, ranging from the offer of several cards (including a Mastercard, “which is rare in the Netherlands”) to shared accounts.

“With the younger generation – because they’ve been exposed to technology early on – it’s like, what can they do for me and my lifestyle”

And when it comes to Gen Z, one size doesn’t fit all; Kutait says that W1TTY offers tailored offers depending on whether you are a crypto trader and want more transactions or a student who wants discounts at your university – or something else entirely.

“We made custom plans,” says Kutait. “So we have a basic plan, which we call ‘everyone’, and then we have a bespoke plan where you can choose whatever you want.”

An omnichannel experience

Research by W1TTY found that online and mobile banking capabilities are the most important factors for Gen Z when choosing a bank. Other research has said the same thing – the most common reason young people still rely on bank branches is a poor digital experience.

When online is bad, who do you call? The bank. A study found that four in 10 Gen Zers and millennials couldn’t find what they were looking for online and about a third had spoken to a call center representative in the past three years.

Kutait says an omnichannel experience — digital help and human assistance — can ease frustrations.

“According to the research we conducted, the biggest complaint was, well, we can’t reach them,” he says. In addition to its existing human chat support, he adds that W1TTY is “launching a feature where you can video call us… Just chat with us, tell us what you want.”

Kutait adds that it builds trust, which is “a big problem with Gen Z.”

Education and Empowerment

When it comes to financial literacy, W1TTY found that 84% of Gen Zers rely on information from their parents and family, and 34% get information from TikTok and YouTube.

While more than a third of Gen Z said they have bad spending habits, W1TTY found more than two-thirds of Gen Z’s budget and save more responsibly than their older counterparts. This financial commitment – stimulated by a horde of influencers – is largely attributed to the lasting financial scars of covid.

“Gen Z needs empowerment, in the sense that they need knowledge, they need guidance,” Kutait says. “A lot of them don’t believe they will earn the same amount of money as their parents.”

Because of these fears, Gen Z are turning to financial institutions that provide the tools and services to educate young people, Kutait says. It leaves them feeling more empowered, he argues.

“We want to give a friendly companion that educates, equips and empowers users,” says Kutait. “Empowerment not only through knowledge, but also through products that give you freedom of choice.”

When it comes to financial literacy, W1TTY found that 84% of Gen Zers rely on information from their parents and family, and 34% get information from TikTok and YouTube.

What is NF Tea?

A CNBC investigation found that half of millennial millionaires have at least 25% of their wealth in crypto, which W1TTY found that Gen Z also wants to participate.

His research revealed that more than half of Gen Z would be happy to receive half of their paycheck in digital assets (like cryptocurrency) instead of fiat (regular currency). But the infrastructure does not support it yet.

“Statistics and data show tremendous interest,” says Kutait. ” But not all [Gen Z] still have the tools or the power to open accounts and we would like to change that.

However, crypto is still volatile and unregulatedwho has caused problems for some young investors.

A bank with a purpose

Even though Gen Z may worry about their individual financial future, the generation is the most social. This means that brands – and banks – must be sustainable and environmentally friendly.

“I like having a choice of what they invest my money in, and there’s an option to limit it to ‘green businesses’,” Dunn says of his bank, adding that he prefers to pay a higher monthly cost than compromising. his morals.

“It’s not just about building a bank, it’s more like a lifestyle”

“There’s simply no other alternative that offers these features, so it’s hard to switch,” he says. “Any bank that doesn’t charge you that way is probably making money in some other way that I don’t agree with.”

Kutait adds that banks targeting Gen Z need to look at the generation holistically.

“It’s not just about building a bank, it’s more of a way of life,” he says. “That’s what we’re building.”

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