As more of Gen Z enters adulthood, financial institutions can’t afford to overlook this demographic. Yet, many banks and credit unions are struggling to capture the attention and loyalty of a generation immersed in technological advancements.
To help, 20 Forbes Finance Council members explain how to engage Gen Z consumers with the right strategies, digital tools and services. These expert tips can prevent your organization from missing the boat on Gen Z and help build lasting relationships with this up-and-coming consumer group.
1. Target Events To Their Interests
Have them attend meetings with their parents and siblings. Make them part of the discussion. Bring in like-aged peers as part of your team so that they can relate to them. Gear events and educational activities to their interests which differ from their parent’s events. – Aviva Pinto, Wealthspire Advisors
2. Connect Through Seamless Tech And Audio/Visual Content
Financial institutions should engage with Gen Z on a more personal and emotional level and make their tech platform seamless. Gen Z needs more visual and musical stimulation; connect through viral content and social platforms. Provide real life relatable scenarios and keep it simple. – Robert Binkele, Estate Planning Team
3. Be Equitably Conscious
Gen Z‘ers are aware of the diversity and variability of background across their generation, which makes them more equitably conscious relative to older generations. Financial institutions need to be equitably conscious in order to effectively speak to this generation as a whole. It is not the responsibility of Gen Z to educate upwards to the financial institutions. – Sanskriti Thakur, Tower Capital
4. Reassess How To Deliver Communication And Service
To engage Gen Z, financial institutions must rethink communication and service delivery. What worked for their parents may no longer apply. Gen Z seeks seamless access, self-service and digital platforms that suit their fast-paced, tech-driven lives. Institutions that adapt to these preferences will be best positioned to attract and retain this next-generation client base. – Royce Ramey, Versant Capital Management
5. Learn From Gen Z Directly
Financial institutions must engage directly with Gen Z, learning from them instead of relying on assumptions. By understanding their preferences and designing products they genuinely want, financial institutions can better connect with this digital-native generation. Simplifying online spending and offering seamless digital experiences will earn Gen Z’s trust—and their business. – Murtaza Ali, JazzCash
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6. Be Mobile Savvy
FIs need to rethink their Go-To-Market, product proposition and product design. The Z generation consumes information differently and uses other sources, e.g., TikTok. In addition, the generation is mobile savvy. Hence, the product design should be executed with a mobile-first approach. Finally, the value of simplicity and experiences can serve as a good guide for new offerings. – Bernardo Martinez, Inverdeco Inc.
7. Complement The AUM Model
To provide meaningful financial guidance to high-earning Gen Z clients, institutions need to develop a model to complement the AUM model. An annual retainer model offering ongoing advice for high earners without assets to manage is a great potential model. Doing so can create ideal future clients today and give those future clients the advice they need to be set up even better in the future. – Joshua Strange, Good Life Financial Advisors of NOVA
8. Create User-Friendly Mobile Apps
Gen Z grew up with smartphones and expects seamless, intuitive and fast digital services. Financial institutions should focus on creating mobile apps that are not only user-friendly but also offer features like instant money transfers, budgeting tools, financial education, personalized financial advice and incorporating gamification elements to make financial management more engaging. – Eugeny Prudchyenko, EvoShare
9. Offer Alternative Investments
Financial institutions are missing out on a massive opportunity to engage Gen Z. To avoid this, they must focus on leveraging digital channels to provide personalized experiences and access to innovative financial products. This includes offering alternative investments, such as cryptocurrencies, which Gen Z is more open to than past generations. – Rafael Loureiro, Wealth.com
10. Adopt E-Signature Capabilities
E-signatures are a necessity that many financial institutions still overlook. Imagine the frustration of Gen Z customers who can’t transfer a 401(k) balance or set up a new account without cumbersome paperwork. By adopting this technology, banks can enhance customer satisfaction and engagement, ensuring they don’t miss out on connecting with the tech-savvy Gen Z. – Dr. Jackie Meyer, TaxPlanIQ, The Concierge CPA
11. Nurture Multi-Generational Relationships
Wealth managers in particular face the risk of client attrition when wealth is passed to the next generation. Prioritizing personalized communication builds strong multi-generational relationships with families before wealth transfer occurs. Engage Gen Z early by building connections to and understanding the unique needs and values of the next generation. – Sonya Thadhani Mughal, Bailard, Inc.
12. Create Engaging Content And Have An Active Online Presence
Institutions should focus on creating personalized and engaging digital content that resonates with this generation. Gen Z values transparency, social responsibility and convenience, so it’s important to develop platforms that are easy to use. An active presence and engagement on social media platforms, where Gen Z spends much of their time, can strengthen relationships and drive engagement. – Appio Fragoletti, Lexington Capital Holdings
13. Embrace Gamification
To engage Gen Z, financial institutions should embrace gamification. Create interactive apps or platforms that use game-like features to teach financial literacy and reward positive financial behaviors. This approach makes finance fun and engaging, aligning with Gen Z’s preference for interactive, digital experiences while promoting responsible financial habits. – Frankie DiAntonio, Lexington Capital Holdings
14. Provide More Payment Options
Gen Z wants more payment options that actually fit their needs. Credit debt hit $1.14 trillion last month and the highest delinquency rates come from Gen Z. Post-Covid inflation has made their road to financial freedom difficult. Banks can help make their paychecks go further without driving revolving debt by offering a combination of bridge loans to payday, overdraft fee waivers and pay-by-bank. – Alexandre Gonthier, Trustly, Inc.
15. Create Bite-Sized, Engaging Financial Content
Focus on authentic financial education and guidance through digital channels. Gen Z values transparency and wants to learn about managing their finances but they prefer to consume information digitally. Financial institutions should create engaging, bite-sized educational content on social platforms that teaches Gen Z about budgeting, investing, building credit and other key financial topics. – Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
16. Start Engaging Early
Provide investments and education appealing to Gen Z’s investing savvy. Gen Z values diversification and invests in a broader spectrum of asset classes beyond traditional stocks and bonds, such as cryptocurrencies, digital assets and leveraged ETFs. As Gen Z invests earlier than their older cohort counterparts, early engagement can also translate into decades-long financial relationships. – Greg Bassuk, AXS Investments
17. Pioneer Intuitive AI-Based Experiences
Gen Z expects seamless, mobile-first experiences and values instant access to financial services, anytime and anywhere. By investing in cutting-edge digital platforms, intuitive apps and hyper-personalized online experiences that are AI-based, banks can meet Gen Z’s expectations and foster long-term loyalty. – Tomer Guriel, ezbob Ltd.
18. Focus On Transparency And Sustainability
Leverage social media and mobile-first platforms to create engaging, short-form content that resonates with Gen Z’s values and interests. Focus on transparency, sustainability and personalized financial advice to build trust and relevance with this tech-savvy generation. Ensure apps are easy to use and engagements are relevant. – Monica Hovsepian, OpenText
19. Hone In On Personalization
Get personal. Today, 54% of Gen Z expects their banking experience to offer more personalization than ever before. To truly connect with Gen Z, you need to better understand their demographic. How much debt are they juggling and what kind? Are they saving for retirement, or planning a dream vacation? Personalized, digital and authentic experiences are no longer optional. – Crissi Cole, Penny Finance
20. Offer Interactive Financial Wellness Programs
Gen Z carries more debt and falls into delinquency more often than millennials at the same age. While they over-index on optimism about the future, they know they need help with their finances. FIs that offer financial wellness programs tailored to Gen Z consumers—with personalized insights and interactive tools—will be more attractive partners who can help Zoomers achieve financial freedom. – Lindsey Downing, TransUnion
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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