Do traditional banks understand the needs of Gen-Z account holders?
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Do large banks understand the needs of Gen-Z account holders?
New research highlights a potential disconnect between banks and Gen-Z when it comes to understanding customer needs.
IBM commissioned Censuswide to survey 3,000 Gen-Z customers and 750 C-suite banking executives in the UK, Germany and Spain – three of Europe’s largest banking markets.?
It found that 88% believe they understand the needs of Gen-Z account holders, but their customers do not necessarily agree with them. 34% of Gen-Z do not believe that traditional banks understand their needs, according to IBM’s research.
More than half of bankers (53%) believe their legacy systems put them at a disadvantage compared to neobanks when it comes to adapting to Gen-Z, but 86% of those surveyed still believe they have the technical capabilities to meet the needs of this demographic.
87% of bankers surveyed are concerned about Gen-Z customers being more willing to switch bank accounts compared to prior generations.
However, the survey shows that the real picture is slightly less drastic: 48% of Gen-Zers say they would switch to a bank if it had better user experience, while 64% would switch bank if their current provider fell short on ethics and environmental sustainability.
Read the full article here.
Alternative finance: the modern methods of financing
Alternative finance is a blanket term that refers to any type of financial service managed outside the parameters of the traditional banking system. These services are driven by fintech and are part of a swiftly growing network of service providers that are linked to the digital ecosystem.?
Fintechs utilise the latest technologies, including AL, ML, blockchain, DL and more, to deliver fast, flexible and secure services for both B2B and B2C customers.?
In a nutshell, innovation and lower-cost services have pushed alternative finance to become so popular. Traditional banking services have failed to address demands in the marketplace for better financial service options. Incumbents have often proved to be inflexible, expensive, and archaic in terms of their business and consumer offerings.
Melba Montague , Senior VP of Banking and Capital Markets for 简柏特 said:
“With rising inflation and costs of living, the current economic climate is anticipated to worsen over the coming months. As cash and disposable income become tighter, we will see increasingly more people turn to non-bank loans as a means of alternative finance, with BNPL models expected to feature prominently.”
Read the full article here.
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Trailblazer of the month
Daniel Kjellén , CEO and Co-founder of Tink
As the CEO and Co-founder of Tink, Europe’s leading open banking platform, Daniel Kjellén and his Co-Founder Frederik Hegberg have now seen their brainchild connect to more than 3,400 banks - reaching 250 million customers.?
Hailing from Sweden, the world’s most cashless society, it's hardly surprising that Daniel Kjellén has blazed a trail across Europe’s open banking scene. But the entrepreneurial former investment banker who launched his first company in 2001 is modest about his achievements and says that the scale and success of Tink have exceeded his expectations.?
Read more here.
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Event round-up: FINTECH LIVE LONDON 2022
BizClik ’s very own Sammie Eastwood rounds up the highlights, topics, speakers, venue and more from our event last month. Don’t miss the full round-up here.
?? FinTech LIVE LONDON NEWS: We have announced the dates for 2023! Be the first to hear announcements and updates - register your interest here.
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Ghostwriter for Founders and Executives | Founder at Woods Copywriting | JP Morgan, Mastercard, Samsung + Many More | Hispanohablante
2 年It depends on the bank and the level of openness to collaboration with fintech companies. Not all traditionals are at the same point in the digital adoption curve. It also depends on the jurisdiction. European financial regulation has become significantly more developed than American in the last 15 years, as an example
Product Team Lead at Paymentsense
2 年Thanks for the insights. I remember similar results made by Chetwood Financial Limited not so long ago (Simon Allsop, maybe, you remember this too). Their survey says that British customers wished banks supported them more. Both articles show that banks need to transform and change if they want to win customers.