GENERATION Z - THE LARGEST COHORT IN THE HISTORY OF THE PLANET
While millennials today are having their moment, the next decade will be shaped by the maturation of the largest generational cohort in history — Generation Z. This cohort of people between 10 and 24 years old comprises 1.8 billion people, making up 24% of the global population
As the EY Megatrends report informs us, while Gen Z is generally more progressive on social issues than preceding generations, important differences in attitudes emerge. Gen Z is more socially conservative and feels more pressured to succeed . Companies will have to identify the important distinctions among Gen Zers to serve this global cohort effectively and begin building that intelligence now
The next decade will be shaped by the maturation of GENERATION Z, the largest generational cohort in history
Source: EY analysis of World Bank Papulation Protections and Estimates data for 2020; age ranges adapted from Pew Research for Globally Consistent data.
Banking Gen Z and Their Families
Deemed “not profitable enough” by traditional financial institutions, the “pocket money market” has massive potential for scale. Parents want to teach their children financial literacy and responsibility. This is a huge opportunity for financial institutions to demonstrate leadership and capture the next generation of customer and their families.
Research consistently demonstrates that financial fitness, building daily habits, is way more powerful than financial literacy. If we want to be successful, we have to develop the day-to-day habits that allow this to ensue.
Where to find them
As the first generation born entirely in the internet age, Gen Z boasts a smartphone penetration that nears 100% everywhere in the world. They maintain more social media accounts, and spend more time on social media, than any other generation. Therefore you need an app, just for them.
Take the apps for a test drive now
download both the guardian and child app. from Android or iOS . any combination. both apps can exist on the same phone
Don't miss the next boat
Most banks and financial institutions got completely blind sided by the Millenial Shift and opened up the opportunity for Fintech Challengers.
Chore Scout is a white label banking app for banks to provide their customers who have families to build the daily financial habits for financial fitness and do that with real bank accounts and real money, creating great customers for life.
The Business Case
Tech giants and banks, like CBA who attribute $10bn of their market capitalization to a strong youth banking program, know that introducing customers to your brand early can be an economic and highly sticky way to attract customers, with a high conversion to MFI. Rather than spend years and millions of dollars to get there , banks can deploy ChoreScout within months.
ChoreScout Case Study
Financial Fitness for Families is Paramount
The importance of financial education for adults and children has been acknowledged throughout the world. Financial products and services have become increasingly accessible to the general population. However, their use is complex and hard to understand for an average individual who has little or no financial education.
Financial fitness, based on daily habits, enables individuals to improve their financial decision making. This fitness benefits individuals, the bank that delivers the platform, the economy and society broadly. Danes and Dunrud (2013) argue that “… life-long benefits of teaching children good money habits make it well worth the effort. Children who are not taught these lessons pay the consequences for a life-time”.
Parents are the gateway, banks are the canal. 87% of high school student acknowledge that they consider their parents as a primary resource to seek financial information but only 22% reported to talk frequently to their parents about money. Banks like ING can step in here and facilitate the conversation, building trust and market share.
Few financial institutions focus on children as this market segment has been perceived for a long time as difficult and challenging. Yet banks that pioneer in providing financial fitness through digital to children enjoy a wide range of benefits from creating a socially responsible reputation to greatly increasing their customer base before competitors realize the opportunity. Children have more chances to become financially literate adults if they are exposed to appropriate financial education programs and activities from their childhood. This is supported by general sociology that indicates that our beliefs are baked by early teens if not before. Friedline and Elliott (2013) concluded that young adults who had a savings account as a child are two times more likely to have a savings account in their adulthood.