Move Over Gen Z; Gen Alpha is Investing Now!
Just when we were getting accustomed to marketing to Gen Z, Gen Alpha has emerged with its own needs, preferences and financial habits! The generation that will live to witness the 22nd century is defined as those born between 2010 and 2024. This generation is expected to be the largest one ever, numbering a whopping 2+ billion by 2025 and making up 11% of the workforce by 2030.
This is also the generation that has gone through some of the most transformative experiences within their short lifetimes, such as the move to remote learning and gamification of education. This is definitely the most tech-savvy generation ever and is likely to experience the longest lifespan than any of its predecessors.
For me it's an especially interesting topic as I have 2 kids almost smack in the middle of this generation. As a fintech marketer, and intrigued parent, I'm taking a look at how some of the more progressive banks and fintechs are marketing to this generation.
Source: McCrindle Research?
Meet Gen Alpha
The biggest difference between Gen Z and Gen Alpha is the generation that is raising them. In fact, Gen Alpha is often referred to as the “mini-millennials” because of their (mostly) millennial parents. But there are some things that both parents and marketers need to know about them. Here’s what experts expect from the newest kids on the block.
On the other hand, millennial parents are committed to giving the best to their children and spend copious amounts of time researching products and services online before making a purchase decision. They are also “health-conscious caretakers,” choosing only the cleanest, safest and highest-quality brands for their offspring. They are also very child-focused, hands-on parents, attuned to the needs of their Gen Alpha children.
Setting the Stage for Financial Decision-Making
The oldest Gen Alpha member will turn 13 this year. So, the way to reach out to them, for now, is through their parents. If you can appeal to the millennial mindset, you can make inroads into the newest generation. This is also because research says that when millennials choose a brand (given the amount of research that goes into the decision), they tend to remain brand-loyal, a trait they are likely to pass on to their children.
Millennials have grown up in the aftermath of the 2008 financial crisis and are now dealing with the economic fallout of the pandemic. One thing, therefore, that they want to instill in their children is financial responsibility. And we all know that the earlier we start, the better the results. Some banks are totally crushing it with their offerings for the below-18 age group, and they are doing it by appealing to parents.
Step
Having already garnered over 4 million customers, Step offers a spending card designed specifically for teens. With the card, customers not only get to start building their credit while they're still in high school, but they can also even choose to invest in fractional shares and bitcoin to begin their journey to meet their financial goals.
But Step recognises that it is the parents who will decide which banking service their child uses. For this, the bank has a complete segment of its website dedicated to parents, telling them how to help their children build credit early so that they can easily apply for student loans, finance a car, and more. They also offer benefits such as automating the child's allowance, earning rewards with smart spending and investing in their future.
Revolut
Revolut <18 offers banking services for teens aged 13 and above. Parents can open a free account for their under 18s, which gives the child a spending card and their own app. Here too, the decision to open the account lies in the hands of the parents, which Revolut recognises only too well, stating that Revolut <18 is designed for “parents and guardians who want their children to gain ?nancial skills and to learn how to use and manage money.”
Once again, parents are encouraged to teach their children to spend smartly and save for their needs and aspirations, from the latest sneakers to college fees. They even help segregate savings from the main account balance so that the teen doesn't spend the savings by accident.
Bankaroo
领英推荐
Here too, you see the bank appealing to parents to teach their children about the value of money and savings for a secure financial future. The "virtual bank for kids" helps them learn how to save for future goals, and how to budget and spend responsibly. Apart from the usual web and mobile app, they offer Bankaroo Plus, which has additional features, such as separate checking, savings and charity accounts, along with the ability to transfer funds among family members. Bankaroo for Schools is designed for teachers who wish to use Bankaroo in class and has an online interface for them with a mobile app for students.
Greenlight
This banking app for Gen Alpha comes with a debit card and allows parents to set controls and get real-time notifications when their children make any transaction. GL Infinity goes one step further to help families feel safe with features such as SOS alerts, location sharing and crash detection. In fact, Greenlight has gone a step ahead of other banking apps to offer parents rewards with 3% cash back on every dollar spent on their Family Cash Card.
gohenry
With over 2 million members, gohenry offers Gen Alpha exactly what they want – personalisation. Users can choose from more than 45 designs to personalise their card, while offering an app that can be used by children of all ages, as well as their parents. Plus, parents are able to set weekly allowance transfers, set tasks that their children can complete and get paid for when done, receive real-time notifications; and have the facility to lock or unlock the card and set spending controls. In short, peace of mind for all concerned.
Marketing to Gen Alpha
Did you know that 89% of children under the age of 13 own a smartphone today, while 87% say that they use at least one social media app regularly? In fact, research shows that Gen Alpha spends an average of 2 hours on their smartphones daily. They no longer need imaginary friends, they have Alexa and Siri! So, AI is already integral to their everyday lives.
On the other hand, this generation is adaptable, curious, and prefers to test things before they commit to them. They have easy access to information and are quick to find and consume content online, at any time. The important thing to remember is that they are quick to try new technologies and adapt easily to innovations in the digital sphere. Having said that, it is also crucial to note that the purchase decision will eventually be made by the parents, although 9 out of 10 parents confess that their children influence their buying decisions.
When selling financial products, brands need to create something that will be attractive and can be used by the entire family. This means creating:
Channels to Reach Out to Gen Alpha
Like Gen Z, Gen Alpha is present on social media and streaming platforms like, especially music, and YouTube. The video format works brilliantly with them because this is a visual generation that tends to scan for information rather than reading long-form text. Remember, attention spans seem to be decreasing with each successive generation.
Influencers
We've already experienced the success of influencers with millennials and Gen Z. This trend is likely to be stronger with Alphas, who attach huge importance to the opinion of people they love and trust. With 54.5% active on Snapchat, 44.2% on TikTok and 23.6% on Instagram, these could be powerful channels to collaborate with influencers on.
Digital Tools
This generation is very comfortable with voice search, Google Discover, Siri and Alexa. They seek immersive experiences. They are also avid internet users. This means product placement on each channel is key. The key is to keep it playful. Don’t miss out on online gaming apps, such as Fortnight, Minecraft and Roblox, as well as the Metaverse. But be careful about aggressive marketing, since they already complain about the interruptive or irrelevant nature of advertising on their favourite platforms.
Some Last Thoughts
With Gen Alpha already browsing the internet and definitely pestering parents (like every other generation of children) to get what they want, the time to appeal to the newest generation is now. We already have some idea about their affinities and preferences. But we still need the parents to make the final purchase decision.
Contentworks has wide experience in positioning financial services providers in the market to stay ahead of the curve. Reach out to us today to learn how we can help you engage your target audience.
Niki Nikolaou Awesome! Thanks for Sharing! ??