NOVEMBER 5, 2023
10 min read
Generation Z’s financial preferences are swiftly veering away from traditional modes of payment, embracing innovative alternatives such as Buy-Now-Pay-Later solutions, digital wallets, and cryptocurrencies.
The following statistics scream: “Today is the best time to create a fintech application that aligns with Gen Z needs!”
A significant part of Gen Z, estimated between 50-80%, actively engages with mobile banking services, underscoring their comfort and preference for tech-driven financial tools. Regarding the usage of physical credit cards, baby boomers (47%) and millennials (46%) commonly utilize them, in complete opposition to Generation Z, where the usage stands at a mere 17%.
Gen Zers are looking for digital tools that are tailored to their needs and preferences, and that align with their values of transparency, individuality, and community. Fintech companies that can deliver on these values have the potential to tap into a valuable and growing customer base.
Once upon a time, there was a group of Gen Zers who had just graduated from college and were starting their first jobs. They were excited to finally have a steady income, but they quickly realized that managing their finances was harder than they thought.
The traditional banks they were used to just didn’t feel like they were designed for them. They didn’t offer the convenience and transparency that Gen Zers value, and the fees and terms were often confusing and opaque.
Luckily, one of the Gen Zers stumbled upon a fintech app that seemed to understand their needs. The app offered quick and easy account setup, a personalized interface, and seamless integration with other apps and services. It also had a strong social media presence and engaged with users on platforms like Instagram and TikTok.
The Gen Zers were immediately hooked. They loved the app’s inclusivity and transparency, and the fact that it was designed with their generation in mind. They also appreciated the app’s gamification features, such as quizzes and challenges that rewarded them for good financial habits.
As they used the app more and more, the Gen Zers became loyal users and even started recommending it to their friends. They appreciated that the app was not only designed for them, but that it also reflected their values of inclusivity, transparency, and convenience.
The apparent enthusiasm of Generation Z for fintech applications signals an open field of opportunities for businesses and startups. So, it’s time for entrepreneurs and established firms to start exploring the creation and fintech mobile app development of innovative products specifically tailored to meet the needs and preferences of Generation Z.
Wondering how to build a fintech app that resonates with Gen Zers? Our team of fintech experts can guide you through the stages of building a fintech app that is user-friendly and meets their unique needs and preferences.
In this article you’ll learn how to create a fintech app that appeals to this important demographic and drives success for your business, whether it’s a mobile wallet, investment app, or even an app like Revolut online bank.
Types of FinTech Apps Popular Among Gen Z
By offering products that align with Gen Z’s financial goals and values, fintech companies can attract and retain a loyal customer base. Additionally, providing clear and easy-to-understand information on how to perform certain actions can help in to build trust and establish a positive reputation among this tech-savvy demographic.
Here are some examples of fintech products that are popular among this generation:
- Budgeting apps. Budgeting apps are a valuable tool for Gen Z, who are known for being financially responsible. These apps help users track their spending, set budgets, and save for their financial goals.
- Investment apps. Gen Z is interested in investing apps, since traditional investing can be intimidating. Investment apps make it easy for Gen Z to start investing with low minimum deposit, easy-to-use interfaces, and educational resources.
- Mobile banking apps. Gen Z values convenience and accessibility, and mobile banking apps provide just that. These apps allow users to check their balances, do money transfers, and pay bills on-the-go, all from their mobile device.
- Cryptocurrency apps. Gen Z is open to alternative forms of investing and is more likely to invest in cryptocurrency. Cryptocurrency apps and blockchain technology provide an easy and accessible way for Gen Z to buy, sell, and hold cryptocurrency.
Tips For Making Fintech More Gen Z-Friendly
Gen Zers want apps that are easy to use and understand. Avoid complex features that may overwhelm them.
- Offer personalization. If your fintech app offers customization options, you’ll definitely be more appealing to Gen Zers, as they value individuality and want products that align with their unique tastes and preferences. Some examples of customization options include choosing a personal finance app color scheme or selecting specific budgeting categories.
By offering these features, fintech application can better attract and retain Gen Z users. And if you ever face any issues such as “the app is not working”, our fintech experts can help you troubleshoot the problem and get customers back to using your mobile banking app without any hassle.
- Provide social proof. Gen Zers are heavily influenced by the opinions and experiences of their peers. Incorporate social proof during the fintech apps development, such as user ratings and reviews, to build trust and credibility among Gen Zers.
- Emphasize convenience. Fintech apps that offer convenience features are more likely to attract Gen Zers, who are used to having everything at their fingertips. Quick and easy account setup, one-click payments, and seamless integration with other apps and services are examples of features that can help build a fintech app more appealing to this demographic.
- Prioritize mobile. Gen Zers are the first generation to have grown up with smartphones, and they rely heavily on mobile devices for everything from socializing to shopping. Optimize your fintech app for mobile devices during the development process to offer a seamless, intuitive user experience on both iOS and Android platforms and be successful with Gen Zers.
- Focus on transparency. Fintech companies need to gain the trust of Gen Zers, who are skeptical of traditional financial institutions and expect transparency. Building a fintech app that is upfront about their fees, data privacy policies, and terms and conditions are more likely to resonate with Gen Z users.
By following these tips, fintech companies can develop a fintech app more Gen Z-friendly and appeal to the unique needs and preferences of this highly sought-after demographic.
Five Ways Fintech Apps Can Market To Gen Zers
To successfully market to the Gen Z demographic, it’s crucial to leverage various strategies. Targeting a highly tech-savvy and digitally connected group with Gen Z fintech companies can create a solid social media presence to reach and engage with this audience.
You can also offer referral programs to incentivize Gen Zers to refer their friends, incorporate gamification during the fintech app development to make the user experience more engaging and fun, create communities or forums where users can connect, and use customer data to personalize the user experience.
#1. Social media
Social media is a powerful tool for fintech applications to connect with Gen Zers. Instagram, TikTok, and Snapchat are some of the most popular social media platforms among this demographic. When you develop a fintech app, you can use these platforms to create engaging content and interact with users. For example, a fintech app that offers investment services could post educational videos on Instagram that explain different investment strategies or host a Q&A session on TikTok to answer user questions and help Gen Z win with their finances.
You can also collaborate with social media influencers and advertise your fintech app to reach Gen Zers. Influencers can share their experience using the app, showcase its features, and offer exclusive discounts to their followers.
#2. Referral programs
Fintech companies can tap into the power of word-of-mouth marketing by offering referral programs. For example, a fintech app could offer a $10 credit to both the referrer and the referred user. Referral programs can be promoted through a variety of channels, including social media, email campaigns, and blogs. By incentivizing Gen Zers to share the digital bank app with their friends, your fintech company can quickly and effectively acquire new users from this valuable demographic.
Gamification is a popular technique for making fintech apps more engaging and entertaining for Gen Zers. For example, a personal finance management app could incorporate a game during the fintech app development process, such as “Spend Bill Gates Money”, to teach users about budgeting and financial planning. By making the user experience more fun and interactive, gamification can help increase user engagement and loyalty.
#4. Community building
Fintech apps can use community building to create a sense of belonging and encourage collaboration among Gen Z users. Online forums or groups can be created where users can share their experiences, offer feedback, and ask questions. For instance, a fintech app that offers budgeting tools could create a community of users who share their budgeting tips, challenges, and success stories.
Personalization is key to attracting and retaining Gen Z users. Use customer data in your app to offer personalized products and services. For example, a fintech app that offers event planning services could use data such as location and interests to provide personalized event recommendations. This type of personalization not only helps Gen Z users find events they’re interested in attending, but also creates a sense of community by showing who’s going to the event, too.
In conclusion, to effectively market fintech apps to Gen Zers, your business should leverage social media, referral programs, gamification, community building, and personalization. These strategies can help your fintech app stand out in a crowded market and attract a valuable and growing demographic.
Top Fintech Apps for Gen Z: Learn From the Best
The practical implementation of financial apps is noteworthy. To aid your understanding of their functionalities, and capabilities, I’ve curated a selection of leading apps across various financial sectors.
Revolut stands out as a frontrunner in the online banking sphere. With an extensive user base of over 20 million and catering to 950,000 businesses, it operates across 200+ countries. This app facilitates multiple financial services, enabling users to efficiently manage, invest, borrow, and safeguard their finances. Businesses benefit from supplementary tools to handle payments, account management, and cost reduction.
A prevalent among payment apps, PayPal enables seamless mobile transactions within PayPal wallets without any commission. Users can conveniently make global online purchases using PayPal, with robust security requiring only an email address and password for payments. Its swift, adaptable, and cost-effective solutions simplify the transaction process, directly withdrawing funds from linked bank cards for hassle-free shopping experiences.
Wealthfront, introduced in 2011, focuses on currency exchange and automating investments. It offers diverse financial opportunities, including retirement savings in various accounts such as traditional IRA, Roth IRA, college savings accounts, trusts, and general investments. Employing the Modern Portfolio Theory algorithm, the Wealthfront robo-consultant proficiently manages and invests money for users.
Alipay is a super-app encompassing various mini-applications to fulfill diverse customer needs. The primary Alipay page focuses on fundamental financial management functions like QR-code scanning for mobile payments and money receipts. Other services are categorized into six segments:
- daily services;
- shopping and entertainment;
- funds management;
- education and public welfare;
- services from partner companies.
Build Fintech App in 3 Month
In this article you’ve learned some tips about how your application for Gen Z should look like. Now it’s time to think, how can you build a fintech app faster than your competitors?
DashDevs and our fintech app developers offer a solution known as Fintech Core, a white-label product. We created this solution to help you swiftly build and launch digital banking and payment products in the form of apps or web platforms, so you don’t need to worry about a long and never-ending software development stage.
Here are the core features it provides:
|Onboarding||Smooth user setup.|
|Identity Verification||Confirms identity and business details.|
|Fraud Detection||Compliance assurance and fraud reduction.|
|Card and Account Management||Control over card and account functions.|
|Balances Oversight||Efficiently tracks account balances.|
|Payment Handling||Ensures smooth payment processing.|
|Transaction Management||Safely manages transactions.|
|Cross-Border Operations||Oversees foreign exchange and cross-border transactions.|
|Deposits & Credits Handling||Efficient administration of deposits and credits.|
|Notifications Management||Customizes and manages notifications.|
|Back Office Operations||Efficient management of backend functions.|
|iOS and Android Applications||White-label apps for both platforms.|
|Multilingual & Multi-Currency Support||Adaptability to diverse currencies and languages.|
With Fintech Core, you get:
- Banking core: A hub for payment functionality, including an engine, APIs, and user-friendly interfaces.
- Ecosystem support: Secure cloud or on-premises solutions for scalable growth.
- Open APIs: Seamless integration of existing and future tech.
- End-to-end customization: Explicitly configured for your business requirements.
- Scalability: Infrastructure that grows with your success.
- Native applications: White-label apps for Web, iOS, and Android, along with middleware and back-office support.
It lays a solid foundation for fintech products such as neobanks, digital banks, digital wallets. Also, you can use it for app development of money transfers, marketplace payments apps, mobile wallets. Moreover, it even extends to insurance apps.
But the most important thing here, this solution helps you to launch your product in weeks rather than months.
Fintech Core caters to various entities, including fintech startups, retail banks, and established products. Hence, if your business is related to these categories, we can provide a comprehensive and adaptable solution for you.
In conclusion, your main goal in crafting fintech solutions for Gen Z is to make it personalized and strategically designed to engage with the ever-evolving customer base. Utilizing social media, gamification, referral initiatives, community involvement, and tailored experiences will significantly appeal to Generation Z.
As you can understand, this demographic values transparent, inclusive, and user-friendly financial tools. Adapting to these principles not only meets their needs but also sets the stage for your innovative solutions and ideas. Aligning your offerings in line with these preferences will pave the way for lasting success in the financial industry and help you build a fintech app that matters.
Ready to grab the attention of Generation Z and develop a fintech app that genuinely resonates with their values? Our skilled team of fintech experts is ready to assist you in creating a Gen Z-friendly app. Book a meeting with us today to explore how you can seize this opportunity and engage with this substantial and expanding customer base.