Today, just like many years ago, financial services occupy a unique status. The thing is they’re always relevant and vital for all generations. But generations have very different needs. What attracts one age group can drive another one back. For example, the number of online banking consumers worldwide is increasing dramatically — there were 2 billion users in 2021 and this number is forecast to be 2.5 billion by 2024. That’s why mobile app development software is on the front burner these days. But does it mean all modern banks should become branchless and go online? Of course, not. Some clients still show a preference for the old-fashioned way of banking. For example, 22% of Italians aged 45-54 are offline account holders. So, concentrating only on app development software won’t help your business to satisfy all of your customers' needs.
Thus, this is undeniable, every new generation is reshaping the modern banking system in its own way. How should fintechs keep up with continuous shifts? Only by constantly learning what exactly their clients expect. There are 4 main generation groups classified today: baby boomers, Generation X, Generation Y (or Millennials), and Generation Z. There’s some crossover between these age groups, but, generally, distinct expectations are peculiar for each of them. For instance, Generation Z is highly unlikely to enjoy your product if you don’t provide them with a mobile banking app while baby boomers are totally fine with face-to-face interaction.
When you understand your target market and its particular requests, you can work your way to fulfilling those specific desires. Consequently, you make your fintech business keep afloat. Ready to find out generations' banking expectations and custom software development tips that help most modern banks to be ahead of the field? Let’s satisfy your curiosity!
What Modern Mobile Banks Should Keep in Mind to Triumph among Customers of All Ages?
You have to be aware of all the new tendencies, changes, expectations, and innovations to meet competition and fulfil all the variety of demands bank clients have today. DashDevs has separated the key aspects for you. Hurry up!
What 3 factors in modern banking have changed the industry?
- Growing needs of consumers. This is possibly the most powerful force making companies evolve. If you don’t provide customers with what they require, you’ll find yourself left out in the cold. By the way, this is how the first bank mobile app was launched in 2011. The Royal Bank of Scotland was the first to understand that physical bank branches aren’t enough for their clients any more.
- Competition. A competitive atmosphere in the banking industry is truly beneficial due to its influence on prices. It lowers lending rates for borrowers and increases deposit rates for lenders. As a result, it expands savings and investments, and, consequently, private sector development, capital growth, personal well-being, and customer satisfaction in general.
- Technology. Implementing tech inventions is essential for banks to thrive in a digital society. Those who do it, go on top, conquering the title of the best mobile banking apps and wealth management platforms used by millions of customers.
What are the 3 pillars of modern successful banking for all gens?
- High-quality communication. It’s important to understand that the means of communication is going to be different for different generations. Make sure you have enough channels to please everyone: emails, virtual assistants, notifications, contact centres, offline consultants, etc.
- User-friendliness. You won’t surprise consumers with websites or mobile banking apps for managing finances. What you should keep in mind is how convenient your product is for each generation, as users tend to choose the most suitable alternatives.
- Relevant offers. Similarly, banks can’t have the same offers for, say, boomers and millennials. Be flexible, know your clients, and understand what exactly they expect from you.
Banking for Today’s Generations: Differences and Trends in Mobile App Development Software
This is a generation born from 1946 to 1964, so they’re now 57-75 years old. They’re called so because of the boom in births following the Second World War. This is the second-largest generation group in the USA — 71m people, and first-largest in the UK — over 14m. They’re usually described as self-assured, competitive, resourceful, goal-centric, and disciplined.
This generation is also known to be the wealthiest in America. Looks like an attractive target market for bankers, right? However, financial institutions often tend to focus on younger generations, forgetting that senior clients are typically more stable. Here are the tips fintechs better follow to appeal to new baby boomers and retain those already loyal to your services:
- Take initiative. Baby boomers commonly demonstrate a low interest in financial organizations. So, if you want to draw their attention to offer them your services, you’ll need to lead the dance.
- Provide high-quality customer service. This generation likes it when they don’t have to ask or explain what exactly they require. Make sure your team is helpful and reacts fast to baby boomers' requests.
- Learn their financial needs. Make proper offers, and baby boomers will choose your service. They’re typically interested in health care and retirement programmes. Besides, many of them are business owners. Therefore, a long-term financial plan is what they’ll certainly appreciate.
- Don’t underestimate their tech-savviness. Born in times when nobody heard of software development, seniors are actively embracing technology now. The number of baby boomers using US bank mobile banking is rising dramatically each year, going from 15.4m in 2014 and to 21.3m in 2019. But ensure they have access to traditional banking as well. Lots of baby boomers still prefer financial institutions with a branch or two nearby.
People born from 1965 to 1980 and now being in their 40s and 50s are known as Generation X. There are about 65m Gen Xers in America and almost 14m in the UK. They’re called so because of the resistance to be defined, referring to the variable “x” and characterised as flexible, self-reliant, independent, and keen on maintaining a work-life balance.
Generation previously famous for being the coolest (likely because of hip-hop and re-birth of punk rock) now finds themselves worrying about retirement and their kids' college tuition. What kind of banking do they expect? Pay attention to the following:
- Maintain a good interest rate. Financial value makes a difference for Gen Xers. They tend to switch to another bank if it provides a better interest rate. One of the reasons is a high level of credit card debt. This is partially because of the necessity to care for two other generations — their Baby Boomer parents and their Millennial/Gen Z children.
- Align with their personal values. Gen Xers are prone to choosing services that somehow aid the community or the environment. So, you’d better come up with leading-edge methods to incorporate social good into the customer experience.
- Be sure your platforms deliver. Digital self-service is in the top 3 of most important bank attributes for Generation X as they interact with financial institutions a lot through smartphones, tablets, PCs, and whatnot. Therefore, they expect a frictionless mobile banking experience.
- Offer the most reliable security services. Gen Xers own the biggest number of credit and debit cards, have accumulated savings, and are in general hard earners. They’re simply in need to guard it all. Fraud protection benefits and strong security features are a must for them.
This is a generation typically defined as people born from 1981 to 1996 (now 25-40 years old). There are over 72m Millennials in America and 14,3m in the UK. They’re called so because the oldest of them became grown-ups in the new millennium. Often described as those with an intuitive understanding of technology, flexible to change, free-thinking, and inventive.
Millennials are now mature and financially responsible. Almost 70% of them are employed full-time and consider themselves financially independent. What do they expect from banks? Here’s another portion of tips:
- Provide safe and accessible digital platforms. Millennials are the most tech-friendly generation, as they are the first to grow up in the Internet age. Mobile banking is a standard for them, not just a supplementary benefit. If your services aren’t user-friendly, it can make them switch to another bank.
- Simplify. Gen Y values time and wants to spend it on things that bring them joy. They aren’t eager at all to waste it on complicated money management processes. Try to remove the steps that can be avoided in banking operations without sacrificing security measures.
- Give financial advice. Millennials are in their peak earning years now. Besides, they begin to dwell more on retirement, mortgage, the tuition fees for their kids, and financial perspectives in general. They, more than anyone, are in need of financial advice. Educate them and keep in mind that they prefer coupling digital help with a human advisor.
- Build a strong business-customer relationship. Millennials saw economical crises. Many of them went through extensive debts due to student loans and the high cost of living. With time, it resulted in distrust towards financial institutions. Thus, millennials aren’t fond of marketing ploys, free stuff, and loyalty programs. What they appreciate are transparency and personal relationships.
Generation Z (also known as iGen or Zoomers) are people born in 1997-2012. Now they’re 9-24 years old. A bit more than 67m of them live in the US and 12.5m in the UK. The name comes from continuing the alphabetical sequence from Generation Y. Zoomers are characterised as digital natives, pragmatic, realistic, adaptable, and self-taught.
Many bankers write iGens off their target market, seeing them as kids not requiring financial services. Meanwhile, this generation will be a third of all consumers over the 5-10 years. They’re already reshaping the whole financial industry, so you’d better start adjusting today:
- Be innovative. Gen Zers appreciate innovation a lot. Almost 70% of them are okay with changing a financial services provider if they find a more innovative alternative. They appreciate features like instant and peer-to-peer payments, chatbots, robo-advisors, etc.
- Reach out to Gen Z on their terms. To win their trust, you need to be in tune with Zoomers, understand their interests and values. For example, a few UK fintechs use TikTok in their quest for customer acquisition. Teaming up with famous influencers can also positively affect your image among Zoomers and attract more of them to your brand.
- Add a human element. It may come as a big surprise, but Generation Z likes going to branches. Statistically, they have more branch interactions per month than other age groups. In-app capability to chat with a real bank worker is what iGens would appreciate too.
- Educate. Gen Z requires good financial education because of still being unaware of how to manage money wisely. For example, they have a lot to learn about using credit. Did you know that Zoomers typically pay with cash or debit cards? All because of a low understanding of how credit works and what it gives.
Next-Gen Digital Banking: What Is It Like?
Generation Alpha is coming. These are kids born since 2010 and who are currently not older than 11. Soon they’ll become the most knowledgeable, technologically savvy, and wealthiest in history. Financial providers should better start focusing on the needs of this generation, now as they’re going to be game-changers. Here’s what to concentrate on:
- Virtual interaction. We’re already witnessing the shift — teenagers prefer to text instead of calling or personal meeting. If financial enterprises want to survive, they’ll have to implement new communication methods.
- Neobanks. Even the best mobile banks will have to adapt and change as neobanks are entering the scene and in just a few years Gen-Alpha will make up more than half of their user base. These are modern fintech companies that offer apps, software, and other technologies to optimise mobile and online banking.
- Marketing. Film stars, famous sportsmen, and successful TikTokers who have far-reaching influence on Gen A should be drawn to successfully popularize your brand among teenagers.
Adjusting to Modern Banking and Customers' Needs or Swimming with the Stream: What’s Your Choice?
Learning the financial habits, expectations, and values of each generation is crucial if you want your company to flourish. If you don’t research, change, and adopt, you may just find yourself watching millions of potential customers pass by simply choosing services that meet their demands. In case you need a quality consultation, all-around assistance, or are in search of a mobile software development company, contact DashDevs. We’re here to provide you with the best services for your business success!