Gen Zers overlook brand messaging: Here’s how banks can capture their loyalty

Gen Zers know how to spot a marketing campaign. But with some well-targeted messaging, community banks can capture the attention — and the business — of this generation.

Gen Zers are the first generation of digital natives. They’ve had access to iPhones, tablets, and high speed internet practically since birth — and they can spot an ad in record time.

All of this tech savvy means that Gen Zers are more desensitized to digital advertising — and are much less likely to pay attention to brand messaging compared to their millennial, Gen Xer, and Baby Boomer counterparts. This presents a challenge for marketers, who may need to rethink their strategies to better target the youngest generation of American workers.

“They have grown up with so much advertising thrown at them,” says Katya Varbanova, a brand marketing consultant. “They are the first generation that can genuinely tell when they are being marketed to and they hate extreme overly promotional messages.”

It’s especially critical for community banks and credit unions to get their advertising right, otherwise they will lose Gen Z customers to competitors like fintechs and neobanks — which are already popular among the demographic. What’s more, 38% of Gen Zers say they feel minimal loyalty to banks, and 25% say they are impressed by banks that can provide superior technology, according to the 2024 Vericast Financial Services Trend Watch Report. As Gen Zers become a bigger percentage of the American workforce, and have more of a need for financial products, it’s important that community banks and credit unions stay ahead of the curve.

 

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