Generation Z, also known as the money conscious generation, makes up more than 26% of the US population and has a buying power of $44 billion. They tend to decide to drop a brand or service due to poorly designed mobile apps or a limited number of channels.
Gen Z-ers have never experienced life without mobile. Therefore, with Amazon and Google delivering a new, automated and personalized banking experience to their fingertips, traditional banks face the risk of losing them as clients.
So, the question remains - are banks doing enough to influence Gen Z banking?
Banking Applications Are Not Enough
Mobile apps and online banking were a great solution for Millennials (Generation Y). This is not the case for Generation Z who expects a fast, personalized and free service.
Improving Modern Banking with WhatsApp Business
57% of Gen Z-ers use messaging apps at least half the time they use their phone. This is where WhatsApp Business comes into play because it connects banks with them in a way they expect.
Providing services over WhatsApp can increase the likelihood of customer loyalty and engagement due to convenience, trust, and familiarity with the app. Additionally, bank profiles can be verified and messages are end-to-end encrypted so, clients and banks can feel secure using the platform.
The Gen Z Banking Experience in Perspective
A Gen Z-er moves to London to attend university and seeks assistance from their bank, ˝Downtown Bank˝. In order to deliver the best experience, the bank makes themselves available for instant interactive communication with rich content capabilities over WhatsApp.
Scenario 1: A student finds herself in the middle of the city, unfamiliar with her surroundings and in urgent need of cash. Unsure of what to do, she turns to her bank’s customer support and opens WhatsApp to ask the bank where the nearest ATM is. The bank responds instantly and gives direct links to the nearest ATMs using location and map sharing. The student feels reassured with her bank’s guidance in a new city.
Scenario 2: A student is at home and sees a commercial on TV for Downtown Bank. He decides to open an account with them but doesn’t want to waste time standing in line at a branch or browsing through pages on the website. He decides to send a picture of his ID to the bank through WhatsApp and selects the type of account he wants to open. The bank automatically opens the account.
Scenario 3: A student sees an ad for an upcoming concert. She doesn’t use the bank’s app and she needs to check her account balance before purchasing a ticket. She remembers that she can message her bank through WhatsApp, at no extra charge, to check her balance. In seconds, the bank responds with her account balance. After seeing her balance, she realizes she can continue with buying the ticket.
So, What Does All This Mean for Banks?
Banks who strive to become the early adopters for this generation can outshine competitors. By using channels they are already accustomed to, like WhatsApp, banks can indulge Gen Z-ers in a way they expect.
Are you looking to upgrade your service model and adapt to Gen Z banking habits?