Attracting Gen Z and Millennials: A Modern Digital Banking Experience Is Key
In today’s competitive banking climate, financial institutions are doing whatever they can to attract a younger demographic, and finding ways to appeal to Gen Z and millennial consumers is likely already a pivotal part of your strategy. Offering fully featured digital banking solutions that deliver both convenience and personalized experiences is critical to appeal to these members—and an investment in modernizing your online and mobile banking solutions will support members of all ages.
Finding Younger Users Where They Are — Online
Gen Zers and millennials have grown up in the always-on digital world. In fact, one study showed that 48% of Gen Z and 46% of millennials can’t go more than four hours without internet access before they become uncomfortable. At ease with technology, these users are far less likely to visit a branch location, and instead, conduct most of their banking activities through mobile channels.
As a result, ensuring that your credit union is discoverable when consumers are searching for a new financial institution — and providing a digital account opening solution to capture them when they find you online — are fundamental steps for attracting younger consumers.
When it comes to banking, younger consumers have also come to expect the same intuitive experience as they’ve had using sites like Amazon and Uber. To retain these users, your online and mobile banking experience must feature 24x7 availability and a modern, easy-to-use interface. Newer, in-demand features that appeal to this demographic are also critical. If members want to transfer funds at midnight, open a new account using their phone, or pay a caregiver in real time, for example, your credit union must provide these capabilities or risk losing members to financial institutions that do.
Among the features younger consumers now expect in their digital banking solution are:
• Peer2Peer (P2P) payments. Gen Z and millennial consumers are foregoing checks and cash for real-time payment options. P2P payment solutions like Zelle or NeuralPayments allow members to send money to others instantly from their phone. Unlike some available P2P options, these services offer consumers the peace of mind that comes with making payments through their trusted financial institution, helping to build loyalty to your brand.
• Financial health tools. Younger members learning to manage their finances will especially benefit from interactive financial health tools that are integrated with your digital banking solution. Features that provide credit score information, budgeting, and simulation tools to help consumers understand the impact of various financial moves will keep members from going elsewhere to find this data.
• Immediate, flexible support. Enhanced digital support tools can provide instant support to members at the point of need. AI-based technology provides the ability to start interactions with members on their laptop or mobile device using channels often preferred by younger generations – such as text, chat, and video — while enabling a seamless transition to a live representative when needed.
Your credit union can also extend its reach beyond traditional banking channels by embedding banking capabilities on a nonfinancial partner’s website or app. For example, embedding banking services within a university’s student portal could enable students and their parents to open an account, check balances, or make tuition payments from within the university’s software, without the need to switch to your financial institution’s website or app. This strategy benefits your credit union by showcasing your brand within an entirely new digital channel, enabling you to offer added convenience to existing members while also attracting new ones.
Personalizing the Banking Experience
Instead of being concerned about privacy of their data, younger consumers expect and welcome personalization in their digital interactions. In a survey about data privacy, 44% of Gen Z respondents said they would provide personal data to enable a more personalized experience over an anonymous one. Additionally, 44% would stop visiting a website if it didn’t anticipate what they needed, liked, or wanted.
Making effective use of available data is key to providing members with a tailored banking experience. With the right tools, for example, you might analyze their mortgage balances and combine that with information about real estate values from an external data source, allowing you to offer home equity-centric products for members with significant equity. Look for data intelligence capabilities that can integrate with your digital banking solution to help you create personalized offers based on the members’ unique circumstances.
Future-Proofing for Success
Over time, member preferences and expectations change, and the success of your credit union depends on your flexibility to respond to evolving market needs. To appeal to Gen Z and millennials, for example, you must examine what these users demand and have a digital banking solution that can continuously innovate to meet these expectations. With the right tools in place, and a digital strategy that helps deliver convenience and personalization, your institution can win these coveted members. To learn more tactics to attract a younger demographic, download Apiture’s white paper, The Way to Gen Z and Millennial Hearts? It’s All About the Experience.