Technologically savvy Gen Z steps into the spotlight
The kids are growing up. As those in the next generation – Gen Z – move toward adulthood, they’re doing things their own way, including how they manage and move money. To address their unique experiences and preferences, financial institutions will need to take a fresh look at services and strategies.
Who is Gen Z? Born after 2000, this generation’s outlook and sense of security have been affected by the aftermath of 9/11 and the financial crisis. Compared to millennials, they’ll likely face even greater challenges as they move into adulthood, including soaring housing costs and stagnant wages. As the first true digital natives, they’ve grown up connected to smartphones and social media, are well versed in digital technology and accustomed to a continual flow of information – all factors that will influence how and where they bank.
New research from Raddon, a Fiserv company, reveals several counterintuitive findings on the financial behaviors and preferences of this generation. It shows 44 percent of Gen Z anticipate supplementing traditional banking services with solutions from technology companies. However, 34 percent express a preference for interacting face to face at a bank or credit union, banking much like their grandparents. The study, Generation Z: The Kids Are All Right, was based on a survey of more than 2,500 high school students ages 16 to 18.
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