Generation Z is putting pressure on banks to improve their customer service.
Finance experts say a shifting landscape in consumer expectations is slowly unfolding, particularly among younger Australians, who are becoming increasingly pivotal for financial institutions.
It comes amid a barrage of complaints and growing media scrutiny over everything from network outages to alleged irresponsible lending at major lenders such as ANZ.
New research released by Pegasystems Inc. and OmniPoll on Monday highlights the key areas where Gen Z is calling for change in quality of service from traditional banks including:
Need for Speed and Personalisation: A staggering 94% of Gen Z customers express the desire for banks to swiftly and transparently process requests, providing rapid answers. The demand for personalisation is equally prominent, with 88% expecting banks to cater to their individual day-to-day needs by proactively notifying them of products and services that align with their preferences.
Emphasis on Mobile Banking: Reflecting the dominance of mobile technology in their lives, the younger generation is most concerned (12%) about banks enhancing online access. In contrast, concerns about physical branches, extended opening hours, or closures are minimal, registering at only 3%, as opposed to 21% among those aged 65 and above.
Green Banking Matters: As environmental consciousness grows, 68% of Gen Z respondents deem it important for their banks to embrace green, sustainable, and environmentally-friendly business practices, including efforts to reduce carbon emissions.
Clarity in Communication: A resounding 93% of respondents expect banks to communicate clearly and transparently regarding products and policies, highlighting the significance of open and honest dialogue between financial institutions and their Gen Z clientele.
The study underscores the imperative for traditional banks to adapt to the evolving expectations of their youngest customer base.
Gen Z’s emphasis on speed, personalisation, mobile accessibility, environmental responsibility, and clear communication poses a significant challenge for banks to stay competitive in a rapidly changing landscape.
“With a growing customer base of younger consumers, banks are being forced to review how they meet the increasing demands placed on them by new generations who have a unique experience and expectation of service,” said Jonathan Tanner, senior director, industry principal banking and insurance, APJ.
“Gen Z customers, in particular, are looking for a bank that meets their needs and guides them through financial decision making.
“The change in demand is overwhelmingly clear — banks need to act faster, deliver more and focus on the needs of the individual customer to remain competitive and retain loyalty. Failing to do so spells serious trouble for those that fail to adapt.”
Banks are now urged to leverage technology and innovation to meet these demands, ensuring that their customer experience aligns with the preferences of the next generation of consumers.
As Gen Z continues to wield its influence, the financial sector faces a pivotal moment in redefining its strategies to meet the evolving needs of today’s youth.
