Like everything else, the COVID-19 pandemic has changed the banking industry. Along with the adjustment to the new normal we have all experienced, the banking industry also had to adjust to the incoming generation, Gen Z. So how do banks attract members of this new generation and keep them?
We know the stereotype for Gen Z: Quick to jump to a new opportunity rather than lock something down long term. In fact, a study from KPMG found that they “expect that clients will switch banks as easily as they currently switch energy suppliers or telecom providers.” If this is the case, there is reason to worry that you could lose your customer base more easily than ever before.
Personalizing and customizing the user experience is the name of the game in 2021 and beyond. Think about it: Whatever you purchase is now up for customization. It can be as small as your breakfast order or as big as your car. Consumers want to have a say in the product they are buying and/or the service they are paying for. Take the restaurant industry, for example. McDonald’s has had to adjust to the demand of personalization. Now they have kiosks where customers can customize every inch of their order (OK, maybe not every inch, but you understand the point).
So why should it be different for your banking experience? This is where a credit union can have an advantage against the big banks, and they know it. According to the Credit Union Times, “64 percent of the Gen Z demographic are looking for personalized banking experience with product and service recommendations relevant to their unique situation.” Credit unions can offer certain benefits and personalization, and now is the time to take advantage of that opportunity by providing incentives or reward programs to members.
Personalization is important, but if your financial institution’s mobile app UI/UX are below par, you need to fix that ASAP. If your bank or credit union has a headache-inducing user experience, you risk losing customers and members. Consistently look at ways you can improve the UI/UX of your interface to make banking as easy as possible. This will only become a higher priority since there is an expectation that “banks will mainly be technology driven companies,” according to an article from KPMG.
If the statement above is true, then security is obviously another important factor for the banking industry. Data breaches that impact financial accounts are no joke: In an instant, you could lose all your money from your savings and checking accounts. Ensure that your financial institution is delivering the best security measures so members can rest easy knowing that their money is safe.
In 2021 and beyond personalization, accessibility, and security are three of the most important factors for banking customers and credit union members. With a whole new generation finally getting their first checking/savings accounts, the financial services industry needs to be prepared to meet the needs of this generation — or face losing them to the competition.