Banking in the age of Millennials & Gen Z
No matter who we are and where we come from, every single one of us is a consumer. However, it should be noted that not all consumers have been created equally. In the ever-swaying balance of the marketplace, two demographics hold more weight than any other: Millennials and Gen Z.
The fact remains that 19 to 35 year olds have already used their influence to create significant change, and they are now followed by Gen Z, a group poised to take over millennials and be the largest generation of consumers by 2020.
However, in addition to the unprecedented leverage that they currently have and will have well into the future, these generations are so much more than their simple, selfie exteriors. Long familiar with card technologies and payment products, they have been slow to adopt – but quick to snub – the latest enterprising efforts to gain their endorsement. When considering the effects of nature versus nurture, as a population, Millennials and Gen Zers are completely a product of their environment – the first to be fluent in rapid information gathering. They have adapted to a world that constantly bombards them with information, more so than any other generation before them. It’s all they’ve ever known.
And with more information, they have had more practice sorting through the myriads channels of information, making them a highly critical population. When weighing the price of technologies, data privacy, invasive marketing, and fees, these two generations can be a picky bunch. However, despite their selective, non-traditionalist tendencies, once they have made an informed decision; they often remain very loyal to their choice.
So what attracts and retains these two generations to your financial institution?
Once they’ve made the leap, Millennials and Gen Zers are apt to invest further in your institution. Rewards give them a compelling reason to choose your card, but increased loyalty can prompt them to consider more of your card programs and additional financial services. These cardholders may self-establish an advantageous and trusted relationship with your offerings, opening the door to gaining further rewards for both you and them.
Although the oversaturated state of the marketplace requires you to work harder to reach each new cardholder, once you’re able to establish that relationship, the cardholders of these generations will be ones who stay. Clearly, this is a population you won’t want to miss out on. So keep working for an understanding and then courting them and you’re sure to find how their loyalty entitles your financial institution to the many ongoing advantages.