Gen Z likes brick and mortar more than you'd think
As consumers, we have the millennial generation to thank for mobile banking apps, online banking and loyalty programs.
Financial institutions spent the last decade adjusting their offerings to appeal to millennials and while these initiatives have successfully won them over, financial institutions must now ask themselves – how can they appeal to Generation Z?
With many in their mid-20's, financial institutions are working to attract the latest generation of customers as they start earning steady paychecks and enter the early stages of financial planning. When looking to this group, they should consider that Gen Z was born after 1995, so they’ve grown up with technology and don’t remember a world without it. Yet, according to a recent report, 63% of Gen Z prefer brick and mortar shops over the convenience of online shopping. By implementing the following ideas, financial institutions can embrace technology while continuing to invest in brick and mortar locations to achieve effective business optimization.
Gen Z'ers are a social generation who will seek a welcoming environment from their financial institutions, including locations that offer a comfortable “coffee-house feel;” in fact, we’ve already seen one large bank have success in offering this setting to customers.
Implementing IP Security systems that offer analytical technology like recognition, automatic detection, counting and monitoring, will also allow these institutions to gather actionable data and create a personalized experience for each customer that walks into their branch. Using the data collected by these systems, they can offer customers a truly customized experience right as they enter. For example, financial experts can utilize collected data to update the location’s digital signage with targeted messages in real time. By catering to customer groups with signage and information based on age, gender and location, brick and mortar locations can target customers with the financial information most applicable to them.
With access to customer analytics, financial institutions will be able to better understand their customers. Using recognition and monitoring technologies, they will know critical details about each customer they interact with, allowing them to provide tailored financial advice and access to the best financial opportunities for their age bracket.
As financial institutions implement additional technology, they must be able to guarantee the privacy of their customer’s personal and financial information. Choosing technology with clear regulations aimed at protecting privacy will ensure that data is secure and being utilized as it was intended to be. For instance, technical features, like static and dynamic privacy masking, can help to secure solutions and protect customer privacy.
Analytical technology will be key for financial institutions looking to appeal to the next generation of customers. Having come of age in the midst of the 2008 financial crisis, secure personal finance is extremely important to this generation. Through smart analytics and customer-centric, tailored banking, financial institutions will win over the next generation, just as they did millennials.