Here’s Why Banks will Want to Capture the Gen Z market
Which market is bigger? The growing baby boomers or the millennials with the “most buying power”? Well it turns out that the Gen Z is on its way to outnumber millennials in buying power, capturing $44 billion dollars. That’s the reason why many banks are fighting to get a piece of the pie.
By locking in the Gen Z consumers early on, and offering them an intuitive and easy way to bank, banking platforms hope to build long term relationships with them from the start. Gen Z customers “were born with smartphones and they have had internet access since birth” says Kard CEO, Scott Gordon. The opportunity to cater to teens with a bank account product is massive as it is clear that people actually want it.
According to a 2017 Raddon study, 44% of Gen Z would bank with a technology company over a traditional bank, the highest percentage compared to other age groups. In the same study, 67% have an account at a financial institution, either with a joint account with their parents or on their own. As more Gen Z consumers capture the market, big banks will want to start paying attention.