Gen Z is here. Get to know them better.
Although these “Zoomers”, as they’re sometimes called, are incredibly digitally savvy and have lives centered around their devices, they think more traditionally when it comes to finances. For instance, according to a Marqueta study, 90% of them are banking with conventional banks rather than neobanks. Here’s another shocker — 80% of Gen Z still use cash on a weekly basis. They also tend to be a more frugal group than Millennials, which may be why this generation showed the largest DDA balance from the first stimulus, according to Kasasa Analytics 2021.
1997 – 2012
9 – 24 years old
Nearly 68 million
• Watched parents struggle through the Great Recession of 2008
Digital natives dominated by social networks, mobile apps, and other tech
Received first mobile phone at age 10
Spend most of their free time online
Highly comfortable integrating online and offline experiences
Seek instant availability, 24/7 connectivity, and overall fast pace
Debit cards and mobile banking
are top priorities
Want banking apps with ability to pay and make easy money transfers
Think retirement saving is a top priority
Still like the banking providers their parents are used to — but crave
Care about the purpose, values, and mission statement a banking
Financial literacy – 6%
They’re called Generation Z — and they’re already a force to be reckoned with.
Driven to succeed. Their way.
Those stats may seem a bit unexpected…until you consider their upbringing. Many Gen Zers watched their parents struggle through the Great Recession. They’ve experienced first-hand the stress of financial shortcomings. Not to mention, many are working to pay off significant college debt. But this generation still plans to be ahead of the game when it comes to retirement. Maybe that’s why they tend to put a significantly higher trust in a financial institution vs. a blogger/influencer when seeking financial advice or information.
Whereas this generation certainly has a focus on earning and saving money, that’s not what drives them. They’re known for being resilient and hyper socially conscious. They’re more motivated by causes and values. Your mission and purpose are as important to them as your products and services. To attract Gen Z, you need to provide the products and technology they expect — and display the values and ideals they can relate to. If you can connect with them and earn their loyalty, the opportunities are extraordinary.
You may think of them as the generation that never looks up from their phones, but you better get to know more about them because there’s a whopping 68 million of them — accounting for a quarter of the U.S. population. UNiDAYS research shows that 72% of Gen Zs have already opened a savings or checking account by the time they graduate high school. And according to Business Insider, their purchasing power already exceeds $143 billion, a number Boston Consulting Group expects to increase by as much as 70% over the next five years. That makes them worth a much deeper look.
banking with conventional banks
still use cash on a weekly basis
next 5 years
Watched parents struggle through the Great Recession of 2008
Social media, social influencing, and citizen journalism
Never knowing a country not at war
• Social media, social influencing, and citizen journalism
• Never knowing a country not at war
• Received first mobile phone at age 10
• Spend most of their free time online
• Highly comfortable integrating online and offline experiences
• Seek instant availability, 24/7
connectivity, and overall fast
pace of communication
• Think retirement saving is a top priority
• Want banking apps with ability to pay and easy money transfers
• Still like the banking providers their parents are used to — but crave new technology
• Care about the purpose, values, and mission statement a banking provider presents
Buying and affording a proper
Mental health: 32%
Personal relationships: 24%
Access to credit: 10%
Financial literacy: 6%
Unemployment – 34%
Mental health – 32%
Indebtedness – 11%
Personal relationships - 24%
Access to credit – 10%
Source: Marqueta Research @ June 2021 The Financial Brand