How Financial Brands Can Learn to Speak Gen Z’s Love Language
Gen Z sometimes gets a bad rap for “canceling” skinny jeans and side hair parts, but we might have to give them a pass for that. As the latest generation to come of age, they represent a significant opportunity for financial brands. Win the hearts of Gen Z, and you’ll earn favor with the rising largest cohort of consumers.
Gen Zers (also known as Zoomers, the iGen and Centennials) are individuals born between 1997-2012. This means that the oldest members of this generation are just entering adulthood, eager for financial education, guidance and resources.
On the surface, we might associate Gen Z with TikTok dance videos, platform shoes and wide-leg pants. However, a recent Ipsos report explored this generation’s deeper desires — such as a longing for stability in a post-pandemic world— and identified key needs that can inform marketing efforts.
Let’s examine the findings to understand how financial service brands can best speak to and serve this generation.
Key Findings About Gen Z and Takeaways for FS Brands
1.
According to the report, Gen Zers are entering their adult lives on the tail end of a global pandemic, craving a sense of control in response to large-scale disorder. As Ipsos explains, this creates “new opportunities for brands to support Gen Zers on a path to financial stability and help them establish routines that meet their mental and physical needs.”
FS Tip: Look for opportunities to help this generation feel in control of their financial future. Offering customizable financial products and platforms provides choices and, in turn, the feeling of having autonomy over decisions. For example, Gen Zers might appreciate customizable online dashboards that give them a snapshot of their finances on their terms.
2.
Gen Z is focused on building a stable future. Of this cohort, 74% say they desire financial peace of mind, with a specific interest in furthering their education (40%) and up-leveling their career and salary (32%).
FS Tip: Consider how you can offer this generation financial peace of mind. Can your brand provide financial literacy resources (like these online courses and podcasts from Community Bank) or goal-tracking tools (such as an app) to help quell worries of “Am I saving enough?” Using comforting words and positive affirmations in messaging (such as “Way to go! You’re on your way to achieving your savings goal!”) may reinforce feelings of financial well-being.
3.
This generation tends to be financially risk-averse and is interested in saving: 64% agree they “need to cut back on spending.” Those surveyed expressed concern over splurging and interest in savings accounts and expense tracking.
FS Tip: Nurture Gen Z’s desire to save by offering robust savings account features or online tools (such as Mint) to help track expenses.
4.
After spending some of their most formative years in a pandemic, Gen Zers are invested in mental and physical health — 84% expressed an interest in doing more for their mental well-being. They’re eager to reduce stress while finding balance between productivity and rest and developing healthy habits. Ipsos Behavioral Scientist Emily Powell, Ph.D., says that Gen Z’s desires to cultivate structured daily routines or wholesome diets stem from a yearning to take back some form of control.
FS Tip: Aim to support this generation’s well-being by seeking ways to reduce their stress around finances. Providing interactive financial checklists or resources (like Bank of America’s Spending & Budgeting Tool) that help develop healthy money-management habits and speak to the need for productivity, structure and routine could be well received.
5.
The pandemic was an isolating time for much of the population, including Gen Z. According to Ipsos, this group considers connecting with others to be a stress reliever, and they’re willing to go out of their way to seek social opportunities, with 41% reporting they had socialized outside the home within the past week. (For comparison, only about 33% of Millennials reported doing so.)
FS Tip: Seek out opportunities to offer Gen Z consumers human connection. Can you give consumers the promise of speaking to a live customer support person on the phone rather than a phone tree or robot? Or, in brick-and-mortar locations, ask yourself how layouts facilitate person-to-person interaction. Does your branch or store create a comfortable, inclusive feel that makes people want to stay a while? We think Capital One Cafes, which provide tasty treats and a welcoming space for all (Capital One customer or not), do a great job of capturing this vibe and promoting a sense of community.
Financial brands don’t have to understand Gen Z’s fashion choices to show they “get” this generation. FIs are uniquely positioned to address Gen Z’s desire for stability and their longing for peace of mind. If FS brands can demonstrate their understanding of these concerns and present simple, stress-free solutions, we think they’ll be able to tap into the serious consumer power of this generation.
