Key stat: Nine in 10 banking executives believe they know how to serve Gen Z banking customers. But 34% of Gen Zers say traditional banks don’t understand their needs.
This finding is based on an IBM survey of 3,000 Gen Z bank customers and 750 C-suite banking executives in the UK, Germany, and Spain.
What do banks think? Banks in the UK and Europe may be slightly off-base when it comes to serving Gen Z, but the survey revealed that while these banks worry about retaining the younger cohort as customers, they’re confident that ultimately, they have the capabilities to keep them hooked.
Gen Z speaks up: The Gen Z survey respondents confirmed banks’ beliefs that they behave differently from previous generations. But it’s not all bad news for banks.
Small misalignments: The survey suggests that while banks are slightly behind in their offerings for the Gen Z population, they’ve identified their own challenges and have some idea of what Gen Zers value in a banking relationship.
The big takeaway: It’s a do-or-die moment for banks: In 2023, there will be more Gen Z adults than adolescents for the first time. Banks need to make a concerted effort to prove to this generation that they can meet their new and changing needs through the digital tools that Gen Z prefers.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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