Changing preferences of Gen Z millennials are driving fintech

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Nonprofit BAI Research Firm Released New Generational Banking Preferences report.

The report aims to understand how each generation: Gen Z, Millennials, Gen X, and Boomers prefers to bank.

Due to technological innovation that continues to remotely bring traditional in-person services, including financial services (e.g. consumer banking), accelerated by the covid-19 pandemic, readers may want to expect consumers to regularly adopt digital channels for banks.

And yes, digital change is seen across two generations: Generation Z and Generation Y.

“Generation Z is Mobile-Centric, they prefer to open deposit accounts through a mobile app, and with significant margin.”

– BAI Banking Outlook special report: Banking attitudes, generation by generation

“Millennials want a better mobile experience” and “Millennials are comfortable with digital counseling”

– BAI Banking Outlook special report: Banking attitudes, generation by generation

These results are consistent with what Mercator Advisory Group finds in its own surveys. The industries participating in this market are pivoting to capture this digital demand. In particular, financial services and major technologies. Big tech because they enable these services on their own tech devices, and financial services because they host the service through the device. This consumer study showing the evolution of consumer demand highlights the following market response to capture profits:

  1. Significant increase in partnerships / joint products between financial services and large technology companies.
  2. Traditional financial institutions are investing in technology.
  3. Big-tech learning the financial industry and creating their own financial services / ancillary services.
  4. Development of FinTech companies.

Earlier in March, the Payments newspaper ran an article featuring an example of these effects: a financial services “super app” that is said to be a “one-stop-shop financial app that consolidates financial information and enables connection in one place.” .

Preview by David Nelyubin, Research Analyst at Mercator Advisory Group

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