Long stereotyped as the “TikTok Generation,” Gen Z maybe seems silly and forever young to some. But the oldest members of Gen Z are purchasing vehicles, buying homes and having kids. In other words, they are now financially mature.
What should you know about this wave of young people as they flood into the financial mainstream?
Here are three statistics telling you a bit more about them along with some tips to make an appealing community bank or credit union brand for them.
1. 75% of Gen Z is fine using tech companies (like Apple) as all-in-one payments solutions.
Unsurprisingly, Gen Z likes high-tech solutions for their payments. Members of this generation are digital natives who grew up with iPhones, social media and Amazon. They expect similar digital capabilities from you.
How can your community bank or credit union brand meet these (admittedly unfair) expectations?
First, update your core if it’s been a while. You can’t become a tech company, but Gen Z consumers expect a modicum of digital prowess. Same goes for your website…an outdated one erodes trust with young consumers.
Second, find your strengths. The same survey showing tech companies dominated payments showed less than 20% of Gen Z trusts those companies for loans or deposits. Don’t make Zelle your differentiator. Carve out territory in accounts and loans (where Gen Z already positions you in their minds).
2. More than 50% of Gen Z doesn’t have suitable emergency savings, and nearly 40% report recent financial setbacks.
Gen Z is coming of age in a challenging economic time. Inflation is well above normal, the rate environment is unfriendly and the housing market is a mess. Add family expenses like daycare into it (remember, they’re having kids now) and you have a lot of financial pressure.
Money-saving offers and favorable deposit rates are appealing to Gen Z. Still, these aren’t always appealing to you. High cost of funds are affecting many balance sheets these days.
Get creative with your community bank or credit union brand. Eliminate fees to help out Gen Z while simultaneously taking a popular stance (i.e. lower fees for consumers). Market loans that build an emergency savings fund as the borrower pays back the debt.
3. 27% of the workforce will be Gen Z by 2025, and the youngest workers typically stay with an organization for less than three years.
The past two statistics focused on Gen Z as consumers. But it’s important to realize they’ll be your employees too.
Gen Z will comprise more than a quarter of the labor market very soon. And they’re much more mobile than past generations, moving around to collect skills or upwardly advance. They don’t want a “boring” job where monotony is common.
Build a community bank or credit union brand attractive to Gen Z workers.
A remote or hybrid environment is ideal, but not possible for all positions. Outline a clear path for advancement with time estimates on how long it takes to get there. Figure out a way to change up the routine. Let a teller shift to another position, allow lower-level staff to shadow leaders or assign special projects.
Does your community bank or credit union brand need more help appealing to Gen Z? Book a free consultation with On The Mark Strategies and develop a resonant brand and marketing.
