Oliver Wyman considers these areas to be most important for young people when choosing a bank:
“The Z (…) generations were born in a fully digital age; as a result, their interaction with financial institutions has to be virtual, direct, and rewarding. In short, these age groups are looking for allies to help them plan for their future.” - Veritran
Digital banking is undoubtedly an emerging trend throughout all ages. However, younger generations would undoubtedly be more proficient and adaptable with the various features of online banking apps. This is something that is very important to young adults.
While it is easy to assume that young people are all-consumed by online banking, it was rather surprising to me to see that among those who visit a bank branch over twice a month – young consumers visit most often (PaymentsJournal). 56% of 18-36 year olds visit their bank branch at least twice a month.
However, 50% of UK 18-30 year olds do not know where their local bank branch is and one sixth have never visited their bank according to Retail Banker International.
It’s important though to realise that the earlier mentioned statistics were probably affected heavily by the older generations in the 18-36 year old cohort. When exclusively analysing the banking trends of Gen Z, one in five consumers (20 percent) visit their bank branch at least weekly, with nearly one-quarter (23 percent) of Gen Z – more than any other age cohort – accessing banking services through a branch at least weekly, compared with only 16 percent of Baby Boomers. Gen Z is also the most likely to use cash when making an in-store purchase, with 28 percent preferring cash, compared to only 18 percent of Millennials.
Therefore, it is clear that there is still a strong desire and presence of physical banking amongst Gen Z which has definitely surprised me.
However, 37.5% of Gen Zers would only use an online or digital bank (Fintech News). Gen Z is more likely to engage with cryptocurrency. They are also more money savvy and are described as “savers” ****rather than “spenders” when compared to millennials. Additionally, 22% of Gen Z make money online.