In our previous blog, we delved into what Gen Z expects from their banking experience, pinpointing 9 key areas of high importance.

Following that insight, we embarked on a comprehensive evaluation of over 94 community banks & 40 credit unions in Iowa to assess how well they align with these digital expectations.

Our findings paint a vivid picture of the current banking landscape's readiness—or lack thereof—to meet Gen Z's needs.

From mobile responsiveness and the criticality of load speeds to the necessity for personalized, self-serviceable features, our research uncovers the gap between expectation and reality.

1. Mobile Friendly:

Speed is crucial – a page load speed over 2 seconds can cause users to bounce, as 92% of Gen Z users multitask while online.

We measured page speeds using “PageSpeed Insights” (a Google tool), and found that only 12% of credit unions & 13% banks scored more than 50 in mobile performance.

This is based on benchmarks such as First Contentful Paint, Largest Contentful Paint and Total Blocking Time.

2. Clear & Concise Content:

With Gen Z’s short attention span, seamless navigation with shortest number of clicks and concise content is key.

‍Only 20% of credit unions and 17% of banks have fixed navigation menu on their mobile sites, leading to excessive scrolling to find the information crucial for Gen Z users.

3. Personalize Content:

According to BAI 2024 Banking Outlook, lack of personalization is identified as one of the top 3 biggest frustrations with digital banking.

The case for personalization in banking is irrefutable, but none of the local and community banks report the use of AI to personalize content.

In a recent article, we highlighted why the time of personalization in banking is NOW!

‍

‍

4. Self-Serviceable:

Many individuals from Generation Z have reported feeling socially anxious, showing a preference for digital communications rather than face-to-face interactions.

However, 59% of banks & 43% of credit unions currently do not offer the capability to open an account online and start banking immediately.

5. Virtual-Assistants:

Approximately 60% of Gen Z consumers prefer banks that provide advanced digital services, such as online chat functions.

‍Yet, just 11% of banks & 35% of credit unions today feature some version of online chat, and many of these are not yet powered by AI.

6. Social Proof:

Gen Z places significant emphasis on social validation in their business decisions.

With 77% of consumers influenced by social proof and 55% of Gen Z persuaded by influencer endorsements, it becomes crucial for banks to highlight testimonials, reviews, and influencer partnerships.

This is particularly important on platforms favored by Gen Z, like TikTok. Nevertheless, Only 22% of credit unions and 11% of banks feature testimonials from the younger generation on their homepage.

7. Financial Education:

Gen Z prioritizes knowledge, with 53% aiming to enhance their financial literacy.

To appeal to this demographic, banks could offer educational resources, advice on managing finances, and tools such as calculators for home ownership or attaining financial stability.

By delivering consistent, targeted content, banks can position themselves as authorities filled with experts who provide essential insights.

‍Yet, only 65% of banks & 55% of credit unions currently provide educational content aimed at Gen Z.

8. Modern Design:

Engaging Gen Z demands a captivating storytelling. Banks ought to emphasize storytelling, adopting a conversational tone, minimalist aesthetics, modern imagery, and impactful icons.

‍However, 52% of banks & 58% of credit unions still present an outdated, overly intricate design lacking a storytelling approach.

Our findings illuminate a stark contrast between Gen Z's expectations and the current digital offerings of most banks.

As this generation's influence continues to grow, banks face a critical juncture: adapt swiftly to embrace digital innovation, personalized services, and engaging storytelling or risk being left behind.

This journey toward digital transformation is not merely about technology but about forging deeper connections with the next wave of consumers, ensuring their financial needs and expectations are not just met but exceeded.

Are digital hurdles slowing your deposit growth? Symphonize helps banking institutions elevate their digital customer experience to match Gen Z's expectations.

Click here to book a quick 30-min discovery call and let's tackle it together!

‍