Banking For The New Generations

These days, observations of generational differences are everywhere — from news reports to jokes on social media, it seems like everyone has something to say about how Generation Z (born 1997 to 2012) is starkly different from other generations. It should therefore come as no surprise that the young adults of Gen Z bank differently, and institutions must react and engage appropriately if they wish to attract this key population as customers. Bankers might benefit from thinking about strategies that will allow them to tap into the Gen Z population and offer this age group quality financial services.

The need to cater to Gen Z is evident by examining the widespread problem of underbanking. According to Forbes, "Gen-Z & Millennial consumers make up 61% of the underbanked and 60% of the unbanked. Said differently, roughly 30% of Millennials in the US are underbanked. That percentage is even higher for Gen-Z's who are just beginning their credit journey." On top of this