Top Gen Z trends impacting banking in the year ahead
Gen Z's habits have already been heavily studied, yet their attitudes toward finance have changed significantly since Covid came on the scene. Learning how they think and act about money now is going to be a cornerstone strategy for any financial institutions battling it out in the New Year.
Going into 2022, it’s imperative that banking gets to know Gen Z (born between about 1996 and 2010) much better than they do now. Student Beans, a student loyalty network, estimates that this upcoming generation has a spending power of at least $44 billion. Furthermore, there’s a long runway; the spending power for members of Gen Z has a potential horizon of $60 trillion once they and Millennials inherit parental wealth, estimates Niamh Cunningham — COO at Rival Technologies. Cunningham spoke during a webinar on Gen Z hosted by MX.
By now, everyone knows that Gen Z are digital natives with an affinity for socially aware brands. They depend on their social media presence unlike any previous generation. The banking industry first recognized — and sought out — the oldest members of Gen Z in 2018 and 2019 as they began to peek around the corner of adulthood.
But banking can’t assume that pre-Covid Gen Z is going to look like the same generational group now entering the industry in 2022. Covid-19 did help this generation establish their financial independence, but it also permanently rocked their boat as the first real financial challenge of their lifetimes.
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