Estimated reading time: 2 minutes
Members of Generation Z are starting to enter the workplace. As crazy as that sounds, Gen. Z (Born 1997-2015) does include some young adults who are graduating college and applying for entry-level positions. These individuals are earning money on their own and fear the ‘big, bad banks.’ Financial Institutions, ISVs, and VARs alike must learn how to adapt and sell to Gen. Z, but first they need to understand this demographic’s background and expectations at hand.
The old members of Generation Z experienced the great recession of 2008 and could probably remember the toll it took on their families and friends. Much of what has happened in 2008 has led many Gen. Z-er’s to hold a lack of trust in financial institutions and even more of an anxious mentality around personal finance. With banks struggling to survive amidst the ever-changing climate and observing how people’s lives have been altered post-recession, Gen. Zs are nervous. They find themselves questioning the need for banks, because with Venmo and pre-paid card services, what’s the point anyway?
Mistrust, doubt and uncertainty has left these individuals feeling wary of looming debts. They are more reluctant than millennials to take out student loans, buy houses and even cars. Generation Z members have simply not been taught a great deal on how to manage money, so it’s no surprise they feel uneasy about these topics.
This should come as a prime opportunity for Financial Institutions, VARs and ISVs to reach out to these young adults, with hopes of educating this generation about the importance of finances, and the many smart payment tools one can adopt as well. Communicating as a trusted advisor and source of education for topics such as saving, spending, and investing can come in handy.
The Digital Generation
They grew up with their favorite movies and TV-shows at their fingertips. They’ve had their hands on smart technology, such as iPods and iPhones for years, browsing the internet as their oyster. Mobile payment apps and other user experiences aren’t just an option, but a requirement and ultimately a way of life, at this point. They expect that information will be delivered to the palms of their hands. Payments better be completed at the speed of light. Lastly, they strive for a payment experience that is going to run as simply as possible.
Tips for VARs & ISVs
As the payment industry progresses forward, ISVs and VARs should be encouraged to stay with the trends. It could also be beneficial to partner up Financial Institutions to see about collaborating on educational materials. Fin-techs will more than likely have a plan for attack on this Gen. Z uncertainty, so a partnership could be in the works. As previously stated, Generation Z has a Masters’ degree in varying trends within digital technology, so perhaps ISVs can create the solution to their problems, digitally.