The new face of finance: reimagining digital banking experiences for Gen Z

By Laura Friend, UK Enterprise Lead, Amplitude

Gen Z has been raised in the era of algorithms and apps. It’s perhaps the most digitally savvy generation to exist, to date. So it’s no surprise that Gen Z users want seamless and fully tailored digital experiences wherever they go. This includes their banking experiences; more than half prioritise mobile banking as a top factor when choosing a bank. So, if financial services providers want to keep their Gen Z users around, they must create value from their very first interaction.

Raising the bar for digital experiences

Gen Z is becoming an increasing priority for financial organisations as its influence and presence grows. At least four million Gen Zs will open a new bank account each year through to 2026. On top of this, wealth transfers are expected to grow to £100 billion by next year; naturally, Gen Zs will likely inherit a chunk. At present, older Gen Zs are already using banking services to invest, save, or spend their money. And for younger Gen Zs – dubbed “screenagers” –  their early exposure to personalised technology inevitably means higher expectations for digital products.

To appeal to this tech-savvy generation, financial providers need to take a mobile-first approach. This experience should be three things: convenient, user-friendly, and quick to drive value. Why? Because Gen Z faces a barrage of apps, and this often leads to shorter attention spans. As such, users want to get in and out of a banking product as quickly as possible. In the same vein, Gen Z users also tend to prefer self-service options, meaning that around-the-clock support, seamless app integration, and virtual assistants will be valuable features to offer. And, when it comes to the experience itself, Gen Z users want their banking product to be hyper-personalised to their financial situation and goals.

Clearly, the financial providers that proactively anticipate and integrate Gen Z users’ needs will stay ahead of the curve.  And to achieve this, they can turn to their behavioural data.

Taking a proactive and personalised approach

Gen Zs have high expectations of their digital banking experiences. Luckily, their data holds the answers. By leveraging data analytics, financial organisations gain detailed insights into Gen Z’s behaviour. They can then tailor each experience to meet these users’ needs faster and more effectively.

For example: say a Gen Z user frequently purchases concert tickets. The business can analyse these spending habits and transactions and offer personalised recommendations or exclusive discounts. Customers can also use spending data to manage their money. Businesses can send mobile alerts for outstanding bills, or update users on daily spending limits. This means customers spend less time in a product but still remain engaged, knowing that their finances are looked after. Most importantly, this proactive approach communicates to customers that financial providers care about their financial health and needs. And this is central to building trust.

Bridging financial knowledge gaps

 For Gen Z, a great product experience is about more than personalised deals. Many users  are stressed about finances, and they want to build their knowledge.  Naturally, they’re turning to the Internet. For instance, 44% of UK Gen Zers learn about investing through social media. There is clearly an appetite to expand financial literacy among this age group. As such, it’s crucial that businesses offer learning content to ensure Gen Zers possess the correct financial knowledge, and have a positive experience with a digital product.

The organisations that offer educational resources and tools to help Gen Z  develop their financial understanding can gain a huge competitive edge. Again, it all comes back to customers’ data, as providers can use it to pinpoint knowledge gaps. Imagine a Gen Z user is applying for a credit card, but they drop off before completing the online application. A bank can use that insight to then embed learning materials about credit cards and interest into that individual’s product experience. They can also offer personalised recommendations for the most suitable credit cards. In turn, the user is empowered, and this builds up trust between the consumer and the provider. And this results in user loyalty.

Today, a digital experience can either retain Gen Z users or swiftly lose them. So, if financial providers want to keep younger customers around, they need to lead with a proactive approach. This means personalising every aspect of their product and building loyalty through trust. By doing so, they can deliver experiences that truly meet Gen Z’s needs.