Financial institutions have quickly adopted mobile banking functionality to attract and retain consumers, especially those in younger generations. But as Gen Z — our youngest generation ranging from ages 10 to 25 — gains exposure to banking, we’re learning that many of the consumers who are at least 18 are not completely satisfied with current mobile banking platforms.
Nearly 9% of these Gen Z banking consumers give mobile banking a grade of 1 or 2 on a 10-point satisfaction scale, according to a December 2021 Javelin study, Gen Z’s Rough Start with Digital Banking. So, these Gen Z consumers are not only dissatisfied, they rate their mobile banking platform as failing.
What can financial institutions learn from this statistic? In short, a basic mobile banking platform is not enough to satisfy this tech-savvy generation. To appeal to this demographic and to stay relevant, you also need solutions that resonate with younger customers. Features popular to Gen Z and other younger demographics include:
- Digital or peer-to-peer (P2P) payments
- Financial health and credit score information
- Integrated outside accounts and transactions
- Digital customer support, including chat functionality
Gen Z’s financial relationships are spread across non-bank entities such as digital payments or P2P, direct banks like Chime, and other providers like Credit Karma. Your challenge is to make your mobile platform a place where consumers can access the financial features they want.
Incorporating a digital payments solution like Zelle® is a good first step to attract this demographic. Gen Zers have grown up using credit and debit cards and, as such, don’t transact as frequently in cash. Adding personal financial health information can be another viable option for your mobile banking platform. As the younger generation gains independence from parents and begins to apply for home and auto loans, having access to credit score and budgeting information through a mobile device is a selling point. Likewise, incorporating a solution that aggregates outside accounts into your mobile banking app is an attractive feature for Gen Zers.
One last option to attract Gen Zers is to bolster digital support functions with technology that this demographic uses every day. Digital customer support platforms like Glia integrate robust support tools like text, video, and chat into your mobile application, making it more likely for these younger consumers to reach out if they have issues, while satisfying demand for instant gratification.
Investing in innovative features for your mobile banking platform adds value for your customers, and at the same time helps build relationships with this important segment.
