What does Gen Z want from banks?

Gen Z is one of the biggest generations in the U.S. currently, with nearly 70 million falling into that category, according to data from Statista. A great deal has been written about their preferences regarding technology, politics, religion, etc., but what about their banking preferences?

The popular concept is that Gen Z only wants digital experiences and don't want to deal with a branch, but is this view correct?

Gen Z is very invested in diversity, equity and inclusion initiatives along with digital services and personalized offerings that meet their needs. How can banks meet these expectations?

To answer these and other questions, ATM Marketplace spoke to Sam Vise, CEO of Optimum Retailing, an in-store experience management solutions provider.

Q. If you could boil down what Gen Z wants from banks to three characteristics, what would those be?

A. Gen Z prioritizes banking services that align with their values, excel in digital capabilities and offer personalized experiences. They are significantly more inclined towards banks committed to environmental, social and governance (ESG) and diversity, equity, and inclusion (DEI) initiatives, with over half likely to switch banks for stronger commitments in these areas, according to a report from BAI. Raised in the digital era, Gen Z also expects banks to provide innovative digital services, including optimal user experiences, efficient payment processes and accessible customer support. To date, banks have significantly advanced their digital offerings, exceeding basic expectations, which will consistently attract Gen Z customers who expect these experiences. Lastly, personalization is key to earning the loyalty of Gen Z, as they seek to be recognized as unique customers rather than just another account holder.

Q. What role do you see the branch itself playing in promoting those Gen Z values?

A. Branches can increase their appeal to Gen Z by integrating localization into their marketing strategies and tailoring messages to the demographics and cultural trends of their specific region. This includes emphasizing ESG and DEI values in their in-store displays and digital signage, which are key for Gen Z. Branches should also consider the specific context of their location. For instance, those near college campuses can tailor their messaging to address the needs of students, with variations based on the campus environment. Branches in proximity to large urban universities could offer services like digital payment solutions and local business partnerships for student discounts, catering to the higher cost of urban living. These branches could also incorporate urban culture into their marketing, reflecting the interests and lifestyles of city-based students. By aligning digital signage and in-store marketing displays with the unique culture, trends and climate of their local areas, branches can more effectively connect with and serve the Gen Z demographic.

Q. What role does digital signage play?

A. Digital signage plays a crucial role in branch marketing, offering increased control and flexibility to display content that resonates with Gen Z customers. It enables branches to showcase their values and key messages to suit different demographics at any given time — allowing marketing teams to stay relevant and timely.

Additionally, digital signage is important in personalizing the brand experience for Gen Z. It allows branches to tailor their brand tone and personality, particularly in areas with a high concentration of Gen Z consumers. By using language and themes that resonate with this demographic, digital signage offers a level of personalization and creativity that is essential in engaging younger customers, with the added advantage of being able to easily modify content as needed.

Q. How can banks use digital signage more efficiently?

A. The reality is that banks are behind when it comes to marketing efforts compared to other industries.

Although a significant number of banks have adopted digital signage, a recent report shows a missed opportunity: while 60% of U.S. banks employ digital signage for customer communication, the majority of these institutions are displaying messages that lack engagement, focusing predominantly on banking-related content (75%) rather than conveying their values or distinct brand identity.

To engage more effectively, particularly with Gen Z customers, banks should focus on showcasing their unique brand voice and value-driven purpose through their digital signage. This approach not only differentiates them from competitors but also resonates with Gen Z's preference for brands with clear values and identities.

Finally, personalizing the content based on local demographics is crucial. By collecting and analyzing data specific to each region, banks can tailor their digital signage to better suit local preferences and needs. This localized approach acknowledges that effective communication is not a one-size-fits-all strategy, enabling banks to connect more meaningfully with their diverse customer base.

Q. Should banks utilize dynamic content?

A. Yes, it's important for banks to have localized and day-parted content for digital signage. The advantage of digital signage is the ability to deliver content based on specific times or target audiences. Banks can leverage this solution to deliver content to customers while they are waiting for a teller or using a bank machine. Day-parting can be used to tailor content based on the different demographic groups that visit the bank at various times in a day. For example, in the morning, elderly customers may come in for simple banking transactions, while small businesses may visit at the end of the day to make deposits and obtain cash for the next day's operations.

Q. What are some other ways banks can transform their branch spaces?

A. Banks can transform their branch spaces by implementing planograms, which are not traditionally used in branches but offer a comprehensive way to plan and organize space to improve the customer experience while ensuring document compliance. Planograms assist in maintaining accessible spaces for customers and adhering to various state or safety requirements like the placement of fire extinguishers and smoke detectors. This method provides branch leaders with insights into various layout options, allowing them to optimize space utilization while staying compliant with regulatory standards.