DIGITAL TRANSFORMATION: GENERATION Z Big banks need to adapt for the future, we all acknowledge that. But what’s the best way for them to do so, particularly when it comes to meeting the needs of emerging customers? COVID-19 and the subsequent lockdowns catapulted investment into digital banking services, as branches shuttered worldwide. And while these changes were undeniably already underway, the pandemic certainly accelerated the technological revolution. The benefits of this trend– and it’s a well-rehearsed argument – are twofold. Customers enjoy more personalised services, as and when they need them, while banks can make efficiency savings by migrating transactions from high-cost, analogue channels to digital ones. Everybody wins. But what about Generation Z – some of whom are not yet out of primary school, while others are just embarking on their careers – the next customer group that banks need to capture? While it’s true that their entire digital experience has been in the age of the iPhone – which, according to Mobiquity’s Ruby Walia, a senior adviser for digital banking, has been an impetus for banks to rework how they interact with all their clients – it would be entirely wrong to assume they eschew any form of human interaction. Indeed, a survey in November 2021 by UK neo business bank Cynergy, among 500 18 to 34 year olds, revealed they thought bank and customer relationships had suffered due to the digital revolution: 64 per cent
believed it had resulted in a reduced understanding of their customer needs – in fact, they were more disenchanted by the changes than those over 35. Bank of America invests more than $3billion a year in technology, while also maintaining a branch network of more than 4,000 financial centres in order to offer the ‘high-tech, high-touch’ approach that this more socially-engaged, thoughtful generation appears to demand. Jorge Camargo, SVP and head of web and app products at the bank, says it understands that customers want access to staff for complex transactions and advice, while acknowledging that all banks need to adopt what Matt Williamson, global VP of financial services at Mobiquity, describes as a ‘three clicks or less’ customer service culture. In 10 years’ time the last of the TikTok generation will be embarking on careers, moving into higher education, starting families perhaps… and where will banks be then? Pushing up the financial daisies or, having correctly predicted customer needs, getting down with the kids? Here are five trends that Walia, Williamson and Camargo believe banks need to get right in the next decade if they are to respond to a generation of digitally native, yet environmentally and socially-conscious, customers.
the financial ecosystem that surrounds you will know all kinds of information about you as a consumer, as an individual, and you will feel comfortable sharing that private data because it’s being used to your benefit.” Banking-as-a-platform and artificially intelligent data analytics will be the technologies that serve up this ubiquitous service, enabled by smartphones on the one hand and open banking on the other. “Ubiquitous banking will be there with you every step of the way, guiding you through financial decisions you need to make – from small ones such as ‘where should I go for dinner?’ to larger ones like ‘when can I buy a house?’, and providing such services in a seamless, accessible form,” adds Walia.
Jiminy Cricket banking “It’ll be almost as if your bank is now this virtual friend, sitting on your shoulder, following you round as you go about your daily life,” says Walia. “In 10 years’ time,
Z is for...
a ‘TikTok’ generation that will be looking for a new relationship with financial providers in 10 years’ time. We asked Mobiquity’s Ruby Walia and Matt Williamson, and Jorge Camargo from Bank of America what five key trends will define banking by then 40
TheFintechMagazine | Issue 22
New wave: Gen Z-ers want a more colourful relationship with their bank
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