Generation Z

When it comes to digital-native shoppers, it’s more than just understanding how their expectations have changed. These expectations are tied to emotional factors that influence buyer behavior, says Michael Rouse, chief commercial officer at Klarna.

When a tweet drew backlash from customers and politicians on Monday, it brought into question how banks should couch their messages on social media.

A rapidly changing workforce and the proliferation of public and shareholder activists have fundamentally reshaped the job of running a bank.

Generation Z is scarred by the financial crisis, but has an awareness of technology that gives payment and financial companies a point of entry, according to Mickey Goldwasser, vice president of marketing at Payrailz.

As Gen Z and the generations that succeed them begin to use financial services, digital capabilities become a must-have rather than a nice-to-have. By planning now, irrelevance in the near future can be avoided, writes John Mitchell, CEO of Episode Six.

Fifty-nine percent of Americans between the ages of 18 and 23 want to buy a house in the next five years, and more than half have already started saving for one, according to a survey by Bank of America.

A focused approach on product standards and social responsibility can help build healthy relationships with Gen Z shoppers, who will, in turn, promote products to their family, friends and followers, writes Steve Davidson, vice president of warranty products at Fortegra.

Wells Fargo charges students nearly four times as much in fees as banks without college marketing agreements, according to an internal report by the Consumer Financial Protection Bureau.

The online lender has acquired NextGenVest, which uses AI and text messaging to advise high school and college students about getting loans. CommonBond’s goal is to better understand the distinctly different demographic group rising behind millennials.

The bank has long had a program in place to train new employees, but now it’s testing a pilot to help retrain existing staff for different careers at the institution.

Credit unions enjoyed a boost to membership as consumers fled the big banks in the wake of the financial crisis. But they can't wait for the next global disaster to drive younger members into their arms.

Trade associations and other industry groups are partnering with universities and colleges to create more degree programs and special courses that prepare young people to work for banks — especially small ones.

Financial institutions need to adapt their offerings to meet the preferences of these young consumers or they risk losing ground to fintechs and other nontraditional players.

Banks and credit unions will have to re-engineer a number of systems to meet the eclectic demands of the generation born roughly in the last 10 to 20 years.

Banks will have to re-engineer a number of systems to meet the eclectic demands of the generation born roughly in the last 10 to 20 years.

Gen Z recruits add a fresh perspective and provide a talent pipeline for the future, bankers say.

Young consumers do not trust centralized authorities, making the distributed ledger attractive, according to Donika Kraeva, strategic communications manager for Dentacoin.

After the 2008 banking crisis, centralized payment systems and financial services don’t have as much appeal to the younger set as a more transparent decentralized system, argues Csaba Csabai, founder and CEO of Inlock.

These teens and early 20-somethings are hardworking, frugal, prudent, debt averse and fiercely opposed to fees — much like their great-grandparents who grew up during the Depression.

These teens and early 20-somethings are hardworking, frugal, prudent, debt averse and fiercely opposed to fees — much like their great-grandparents who grew up during the Depression.