What Banking is for Gen Z
Imagine mentioning “banking” to Gen Z, and it immediately evokes images of old men counting stacks of coins and uttering complicated financial terms. Often, the most about banking that Zoomers are aware of, or choose to be bothered with, is how to handle money in a game of Monopoly. For the most part, banking is something that this generation deems boring, and they consider the process of opening bank accounts and managing finances as tedious. At the same time, however, we do admit that financial literacy is important to a great extent, not in a professional sense but to tackle adult life itself.
What Gen Z expects from banking apps
In a world where our smartphones are practically an extension of ourselves, it is only natural that Gen Z seeks a banking experience which does not merely cater to our financial needs in tandem with our digital lifestyle, but offers a more personalized, engaging, and secure experience. The impression that most people have is that banking is just about transactions. There are boundless possibilities in the world of FinTech– from Augmented Reality to sustainability, which would make Gen Z a lot more interested in banking and what comes with it. Features such as these are what Gen Z wants when we open a banking app.
The Made-To-Fit Experience: Personalisation
Personalization is key in everything imaginable today. Gen Z wants to see a part of themselves in everything, and prefers custom-made over generic. A banking app that learns from each individual’s spending habits and provides tailored insights, empowering them to make smarter financial decisions, is sure to win their loyalty. From a budget tracker that categorizes expenses to a savings plan that automatically allocates funds based on goals, personalization should be at the core of the user experience.
But personalization doesn’t stop there. Gen Z values individuality and self-expression in every interaction. Having the option to customize their app interface not only enhances the aesthetic appeal but also fosters a sense of ownership and connection with the platform. That’s why customizable features such as choosing colors, wallpapers, and layout options are sure to win them over.
Livening Up the Screen: Accessibility
Accessibility is another aspect that banking apps need to prioritize. While graphics and animations can provide an interactive experience, they must not overwhelm or clutter the interface. Many users complain of a dry user interface which makes banking feel like a chore. A balance must be struck between engagement and simplicity to ensure that users can navigate the app effortlessly. Something that we feel will make the experience better for us, is a sort of video game-style interface, where characters, avatars, and quests guide users towards their financial goals. On successfully completing a monthly saving challenge, say, users receive points or unlock a reward. This would make the process of banking more enjoyable.
Learning While Saving: Financial Education
Arguably, what throws off Gen Z more than anything is being bombarded with abstract concepts and financial jargon. Financial literacy is an area where banking apps have the potential to turn the tide in their favor and make a significant impact on Gen Z users. Why shouldn’t learning about money be fun and rewarding? Puzzles, quizzes, and interactive tutorials can help break down banking concepts and aid users in taking control of their financial future. By incentivising learning through rewards and fun facts, Gen Z would take a greater interest and a more active role in managing finances.
Securing Future Finances: Safe Banking
Security and privacy are non-negotiable components of any banking app. With a constant stream of online information at their disposal, Zoomers are well aware of the risks associated with online transactions. A fast, secure and convenient banking experience even without a strong internet signal, is at the top of their list. Banks can win the trust of Gen Z with adequate safeguarding measures such as double verification and end-to-end encryption, leaving no room for any breach of our security.
Help Without Hurdles: AI Customer Support
It is a well-established fact that the attention span of individuals decreases with every generation, and consequently patience wears thinner too. Slow and inefficient customer service of a company will instantly lose them customers from Gen Z. Customer support must redirect customers with clear and helpful instructions, efficiently utilizing AI to ensure a smooth user journey.
Money Grows, And So Do Trees: Sustainable Banking
Something that a lot of companies are latching on to is the fact that Gen Z is big on sustainability concerns. Banking apps can play a role in promoting eco-friendliness in different ways. They can award sustainability points for purchases with environmentally responsible producers, track users’ carbon footprints and encourage greener spending alternatives wherever possible. This will not just encourage sustainable shopping, but also bring about an awareness in users who otherwise might not think twice about their environmental impact.
Money On My Mind: Spending and Mental Health
The world is more concerned than ever about the importance of mental health. Studies have shown that Gen Z is comparatively pickier about what they buy than their preceding generations. However, they are also more prone to anxiety and stress-buying. Furthermore, FOMO (the Fear Of Missing Out) and the influence of social media fuels a compulsion to buy what other netizens do. Banking apps have an opportunity to enhance the mental well-being of their customers, by using the data collected around spending habits and patterns. Users can opt for the app to send alerts or lock their accounts to stop stress-buying or panic-buying, depending on their usual buying behavior. They can also receive encouraging tips and reminders to take care of their mental well-being. This could potentially attract a lot of Zoomers, considering the twin benefits of saving money and focusing on mental health.
Going Global: International Transactions
In a world where transactions with friends across borders, travel and sending humanitarian aid are increasing, Gen Z users desire a free and seamless global and unified banking experience. They do not want to face the obstacles and inconveniences of currency conversion, errors in international transactions or the necessity to pay for the same. Banking apps that allow free international transactions will prospectively attract more customers from our generation.
No Small Business: Resources and Tips for Entrepreneurs
Zoomers are coming up with new business ideas all the time. All we need is appropriate guidance to put our dreams into practice. Banking apps can offer financial guidance and resources to help budding entrepreneurs and provide market analyses as well as scenarios to run. They can also use technology to show income estimates and future projections for us to base business decisions on.
Why Should Banking Apps Focus on Gen Z?
Gen Z is a huge consumer base for finance, constituting more than 30 percent of the world’s population. They are eager to save (Finder’s Consumer Confidence Index points out that Gen Z saves an average of $857 per month, compared to $294 by millennials) and want an app that can aid them with this. According to a Morgan Stanley survey, 50 to 80 percent of smartphone-owning Gen Z members use mobile banking. Being technologically adept, we want the finer points of finance to be taken care of by virtual assistance and smart apps. As they come of age, Gen Z is heralding new ideas and expectations. By understanding and catering to the unique preferences and values of this demographic, banks can create a banking experience that is not only functional but also convenient and enjoyable. A majority of the generation agrees that they would prefer if other experiences and services– such as social media, ordering food online, or booking a cab– are conveniently integrated with their banking app, so that they don’t need multiple apps. Most users are encouraged by reasonable offers and scratch cards received with transactions they make. Gen Z will continue to reshape the digital landscape and play a vital role in the future of banking. Thus, banking apps must keep up with Gen Z and evolve to meet their dynamic needs and expectations through constant innovation.
Explore how Appzillon can help you prepare for your future customers. Schedule a demo now!
