Emerging Trends In Banking And Finance

Thu, 14 October 2021  |  banking demographics 

"As the world of finance continues to evolve, banks, credit unions and fintechs are working to build sustainable solutions that will connect with millenials, Gen Z and baby boomers," said Shayli Lones, VP of Go-to-Market at MX. "The greatest opportunity for banks and credit unions is to capitalize on the level of trust they've already established with their customers. This includes offering competitive and valuable products and services, and keeping the human touch even as interactions move into digital channels."

Key findings include:

• Generational Differences in Banking Habits: Only 47% of Gen Z respondents claimed to have an account with a traditional bank, credit union, neobank or technology company.
• Attitudes Toward Financial Apps: More than 80% of Gen Z and millenials are using a money transfer app.
• Customer Support Preferences: 53% of Gen Z respondents and 42% of millennials wanted to be able to find their answer online, while 27% of baby boomers preferred this channel.
• Satisfaction and User Experience with Digital Banking: 85% of respondents were at least somewhat satisfied with their overall banking services experience, though baby boomers were much more likely to be very satisfied.
• Top Priorities When Choosing a Financial Service Provider: "Level of trust and security" was selected by more than 48% of respondents as their top priority. Among Gen Z and millenials, "rates, products, services and special offers" was the second-most-important category.
• Trust in Financial Institutions: More than 80% of respondents said they trust their primary financial service provider with their personal financial data; however, Gen Z and millennials were less likely than baby boomers to completely trust their FIs.

"Millennials and Gen Zs are set to become the most important customer group for most banks and credit unions over the next decade, as nearly $70 trillion in wealth transfers to them from their parents. But, as our research shows, what worked for mom and dad will not be enough to win and keep this younger demographic as a customer," said Jake Tyler, CEO at Finn AI. "Traditional FIs need to bring the trust and personal touch they delivered in branch and phone to boomers into their mobile experience, which is where most younger consumers bank. Tools like live-chat combined with virtual assistants and automated chat can help them deliver this and compete with new tech and fintech entrants."

"The way that we bank is changing quickly. The institutions that will be successful are the ones that are providing tools and services to educate their customer base and improve financial literacy, said Niamh Cunningham, COO at Rival Technologies. "If you're not talking to your customers about their financial health and future during the largest transfer of wealth in history, then another financial institution is."

Source: MX, Q2, Rival Technologies, Finn AI White Paper