The Gen Z Banking Revolution and Social Media
February, 2024
The Gen Z Banking Evolution and Social Media
If you think Gen Z workers (folks born after 1996) roll their paychecks straight into dogecoin as soon as they get paid, think again. Despite being “digital natives,” many Gen Zers enjoy the stability of community banks and credit unions. Granted, this doesn’t always translate to in-person banking. Let’s crack into the relationship between financial institutions and Gen Z, and see what role social media can play.
The Banking World has Changed
The COVID pandemic sped up digital transformation and their social media footprints for many community banks and credit unions. Before COVID, very few FI’s made it easy for new customers to open online-only accounts. Nor were they set up to remotely talk or chat with customers, allow e-signings, or let people many other types of transactions without visiting a branch.
Today, plenty of financial institutions still face digital transformation challenges, but they’re catching up, especially on social media channels like LinkedIn, X, and Facebook. However, as they race to upgrade their digital solutions, they’re facing new competition, as fintech startups and online-only neobanks claim market share. And let’s not forget about large, global institutions that have tripled down on their online and app-based feature sets. The results: there are about 10X the banking options as there were a decade ago.
Gen Z and Their Money
With so many banking options, it’s important to ask what Gen Zers want. They may have grown up in a digital-first world, but they’re attracted to many of the things that small, local, and community FIs, including a personal touch, the ability to have conversations, peace of mind, and the trust that comes from human interactions. In fact, trust is one of the biggest pieces of all. Gen Zers trust that banks will protect their money and their data.
How Can Banks Use Social Media to Connect with Gen Z?
Financial Institutions benefit with a mix of old and new stories posted on multiple social media platforms. For every post that showcases your history, physical presence, and a handshake (or fist bump), share a post that highlights your competitive, digital offerings. Why? Because Gen Zers are ready to embrace digital innovation. This is one of the reasons many of them gravitate toward online-only neobanks.
Reinforce the ways that your digital experience is evolving toward being exceptional (or is already there).
Other than transfers and deposit, highlight other things that people can do via your mobile banking app. Is real-time budgeting an option? Do you include a savings calculator to help people plan for big purchases?
People across all generational cohorts enjoy convenience. Highlight features and services that satisfy the demand for convenience, choice, and value.
Thinking specifically about Gen Zers and social media, they are passionate about causes of local and global consequences. Let your audience know what your bank is doing to be more sustainable, to honor diversity, equity, and inclusion, and to give back to communities that have been traditionally marginalized.
Every generation, including Gen Z, wants to take control of their money. As the youngest cohort in the workforce, Gen Zers are eager for information, advice, and support where their money and financial future is concerned. As more and more Gen Zers join the workforce, they’ll continue to look toward people and institutions that align with their attitudes, preferences, and goals. And, of course, those they can see on their favorite social media platforms.
No matter what shape your financial institution takes, look for ways to appeal to the things that matter to Gen Z, while highlighting your own evolution.
Curious how Yancey Red can help your community bank or credit union reach your younger audience segments? Send us a note and we’ll be in touch.