Generation Z (Gen Z) is the first generation of people never to have known a world without the internet; the first of modern times to be worse off than their parents; and the first in several decades to have grown up in a recession. These experiences mean that Gen Z’s worldview differs greatly to generations that have come before them.
Generation Z and money
The advent of the Child Trust Fund in 2002 has brought this generation into their financial life cycle earlier than previous generations. Our research showed that this young group of people are also displaying significantly different behaviours when it comes to managing their money.
5 things lenders need to know about Gen Z approaches to their finance
In need of advice
Generation Z often seek advice from friends and family when making their financial decisions. Parents are the first port of call for advice for Gen Z, with 73% asking relatives for help.
Going to branch
Gen Z are more likely to use branches than other generations, particularly when setting up new products. Receiving advice and support is important to them, but without sacrificing data security and 24/7 service.
Generation Z are far more likely than any other groups to manage their finances using their smartphones. They are also very comfortable with the idea of using automated chat as a legitimate contact channel.
The human touch
While the online experience is undoubtedly important to this group of young consumers, Gen Z wants also to experience the security that a personal touch and one-to-one professional advice can provide.
Across the generations, it is clear that the greater the value of a financial product, the more likely the customer is to want support from a human being rather than an automated assistant.
Brand and ethics
In choosing a provider, an established brand is the most important factor to Gen Z, with 53% saying this would influence their decision.
Lenders need to recognise that Gen Z is not just following in the footsteps of any generations that have come before them. These young consumers are forging their own path and have different values, to which providers must adapt.
To learn more, download the white paper ‘Generation Z – Fuelling disruption in financial services.’
Generation Z - Fuelling disruption in financial services
Discover how Generation Z approaches their finances, and the manner in which they want to engage with their providers.Download our white paper!