What does Gen Z care about when it comes to money? How Gen Z approaches money will determine the steps banks need to take to catch up.
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GOBankingRates recently surveyed Gen Z members aged 18+ to find out their banking preferences and better understand the future of financial institutions. Here are the top findings:
Generation Z is looking for the lowest available rates
When teens and 20-somethings are looking for a bank, 31% of respondents say they are looking for the lowest fees. This may apply to account opening, overdraft fees, transfer fees, etc. Less is better for Gen Z. The next popular feature Gen Z will look for is a good rate applied to his APY at the highest of savings accounts.
What are the least attractive perks for Gen Z? Low minimum deposit and wide variety of accounts. Only 7% of respondents listed these as the top features they were looking for.
Take our survey: How much signup bonus do you need to change banks?
Most of Gen Z have accounts under $100
A third of those surveyed said their checking account balance was less than $100. This is a bit surprising considering they don’t care about minimum deposit requirements. However, given the amount of money Gen Z has to store, it may suggest that fewer banks are demanding minimum deposit requirements.
When it comes to high-value housing ($1,000+), only 26% of Gen Z respondents say they have one.
A savings account is similar to a checking account
Respondents gave very similar answers regarding the amount of checking and savings accounts. The highest answer given by her 31% of respondents said he has $100 or less in his savings account.
But that doesn’t mean Gen Z won’t save at all. One in six he saves her $5,000 or more. With the good interest rates they’re looking for, they’re probably getting good interest payments as well.
Mobile banking is king
An overwhelming majority of 66% of respondents said mobile banking (i.e. apps) is their preferred method of access. About 1 in 5 prefers his banking online and only 14% prefer face-to-face banking.
Checks are not entirely a thing of the past
As you might imagine, Gen Z doesn’t write a ton of checks. 43% of respondents said they had not written a check in the past year. However, 28% said he wrote a check at least once a month, suggesting that many rent payments are still made using pen and paper.
Gen Z doesn’t care much about cryptocurrencies
Cryptocurrency was the hot financial term everyone was talking about in 2021, but Gen Z rarely considers it when choosing a financial institution. Only 9% of respondents said it was very important for their bank to partner with a cryptocurrency exchange or platform. Only 7% said they expect banks and credit unions to offer cryptocurrency services.
Once Generation Z Finds Banks, They’re Locked In
Attracting Gen Z to banks is the biggest hurdle.
83% of survey respondents say they are satisfied with all banking products and services offered by their bank or credit union. When asked why he stays at the bank, 49% of respondents said it was simply because they didn’t want to change, and 19% said they didn’t want to change because they feared it would be difficult and time consuming.
When I asked how much signup bonus I needed to switch, $300 was an even amount. The largest percentage (24%) settle for $100 or less.
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