We’ve all watched as millennials took center stage as the countries dominant spenders. However, this got many credit unions thinking about what comes next. How can credit unions better serve Gen Z when it comes time for them to take the reins and start creating businesses, buying homes, cars, and so on?
That’s an excellent question from forward-thinking businesses that want to get ahead of the game and offer their members more convenient tools and services. That’s why the team at BillingTree has put together a few items that may help you become the dominant figure in the eyes of our youngest generation of consumers.
What You Need to Know
While many institutions are not troubling themselves just yet, Generation Z will be a major power player, and it’s only going to get bigger – in size, influence, and purchasing power.
The trends we see from Generation Z are more or less the same as Millennials. We’ve seen an uptick in frugality, as well as a preference for convenient technology to make the banking experience optimal; that’s where digital banking comes into play.
Now that Gen Z is entering adulthood, it stands to reason they will expect the same level of technological convenience they were born into. That should start exciting many credit unions and push them to shift to more digital tools if they haven’t already. Ideally, every credit union should institute some level of intelligent automation, like automatic reminders, a convenient payment portal, and multiple means of making/managing payments over the phone.
In fact, recent data indicates that Gen Z might be an audience credit unions can help the most. A January 2021 survey conducted by The Ascent found that “43.88% of Gen Zers had maxed out on at least one credit card, and 39.80% needed to use balance transfer offers.” Having tools that can help manage and edit payment plans, offering a notification system to provide debt consolidation would be ideal for a population segment that will have more debt than any previous generation before them.
How You Can Help
Consumers in this generation want choice, and they want flexibility. Not only do they want to pay online, but they also want a thoroughly technological solution. They don’t want paper bills and invoices. They prefer an online portal, mobile app, and SMS/Text payment options. In addition, they want the ability to arrange a payment plan so they can budget more effectively.
These technologies do not just improve the member experience; they can also help credit unions. For example, payment technologies streamline billing and payment processes by providing an omnichannel solution. As a result, they make it quicker and easier to receive outstanding sums without expending staff time and effort.
Generation Z is undoubtedly a unique demographic. There’s definitely a right way to market to this audience, and that’s through convenience. We believe you need an omnichannel payment solution to do it right.
Reach out today to learn how BillingTree can help improve the member experience for every generation!