# Catering for a new generation of digital bankers
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-09-07
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: How Banks Can Cater to Generation Z's Digital Natives
Meta Description: Discover how traditional banks can adapt to the digital demands of Generation Z by providing personalised and instant banking experiences through platforms
URL: https://financedigest.com/catering-for-a-new-generation-of-digital-bankershtml

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_By **Noel Lavery,** UK Sales Director, [Infobip](https://www.infobip.com/)_

Just as banks have begun to understand what makes millennials tick, the entrance of the digital native Generation Z (Gen Z) into the market has brought a huge shift in customer behaviours and expectations. These individuals have never known life without digital technologies like smartphones and social media, which has transformed the way businesses must work to communicate and connect with them.

This is a generation that makes no distinction between the online and offline worlds. They could [drop a brand or service](http://www.adweek.com/brand-marketing/new-study-reveals-how-the-expectations-of-gen-z-are-reshaping-brand-experiences/) due to a poorly designed mobile app or a limited number of channels. And with Amazon and Google delivering new, [automated and personalised banking experiences](https://fortune.com/2017/01/11/google-facebook-amazon-banking/) to Gen Z’s fingertips, traditional banks face the risk of losing them as clients unless they deliver more authentic experiences.

Gen Z [already have a spending power globally of $140bn](https://www.businessinsider.com/retail-courts-gen-z-spending-power-over-140-billion-2020-1?r=US&IR=T) and have been found to be more financially conscious and independent than their X and Y predecessors. So how do banks cater to one of the fastest [growing consumer markets in the world when their demands](https://www.financedigest.com/demand-for-automotive-radiator-market-driven-by-shifting-consumer-perceptions-and-growing-awareness.html "Demand for Automotive Radiator Market Driven by Shifting Consumer Perceptions and Growing Awareness") are not only different, but more volatile?

**A personalised banking experience**

Being able to [manage finances](https://www.financedigest.com/how-application-management-can-help-tackle-the-finance-industrys-carbon-emissions.html "How application management can help tackle the finance industry’s carbon emissions") online or via apps was a great solution for millennials (Generation Y). Gen Z, on the other hand, have an [attention span of only 8 seconds](https://ymedialabs.com/generation-z-financial-institutions), so will show little patience for digital apps that complicate their lives in any way, or aren’t available on the go. In fact, 69% of them don’t find value in most apps.

Gen Z [need to be given instant](https://www.financedigest.com/instant-payments-and-the-need-for-standardization.html "Instant payments and the need for standardization") access to information on the channels they use most. With a quarter [spending more than five hours per day on their phones](https://www.businessinsider.com/retail-courts-gen-z-spending-power-over-140-billion-2020-1?r=US&IR=T) and over half (57%) using [messaging apps](https://www.herosmyth.com/article/75-eye-opening-statistics-how-each-generation-uses-technology) for the majority of this time, financial organisations must make the most of _how_ a mobile phone is being used to deliver a quick, seamless, and personalised banking experience.

**The [benefits of WhatsApp Business](https://www.financedigest.com/how-choosing-the-right-mtd-for-vat-software-can-maximise-business-benefits.html "How choosing the right MTD for VAT software can maximise business benefits") for banks**

A recent study from Facebook found that in the UK, [57% of Gen Z wished they could message more businesses](https://en-gb.facebook.com/iq/insights-to-go/57-in-the-uk-57-of-gen-zers-surveyed-wish-they-could-message-more-businesses/), indicating that younger customers want to connect with businesses on a familiar platform that is fast and reliable.

This is where WhatsApp Business comes into play, which enables businesses to send real-time alerts and notifications while offering always-on support through a chatbot or live agent. Providing services over WhatsApp will increase the likelihood of [customer loyalty](https://www.financedigest.com/the-problem-with-measuring-customer-loyalty-and-how-to-overcome-it.html "The problem with measuring customer loyalty; and how to overcome it") and engagement due to convenience, trust, and familiarity with the app. Additionally, bank profiles can be [verified](https://developers.facebook.com/docs/whatsapp/guides/vname/) and messages are end-to-end encrypted, so clients and banks feel secure using the platform.

One of the main [benefits is an on-demand service](https://www.financedigest.com/how-guest-blogging-service-benefits-your-business.html "How Guest Blogging Service Benefits Your Business"), where banks can deliver instant interactive communication with rich content capabilities. For example, customers could quickly [open bank accounts](https://www.financedigest.com/how-accountants-can-improve-financial-planning-and-results-through-open-banking-to-help-smes.html "How accountants can improve financial planning and results through Open Banking to help SMEs") via WhatsApp, students could speak to their banks to locate their nearest ATM and bank statements could be provided in seconds.

The same applies for customer care, where chatbots can be used to manage more straightforward queries like [bank opening](https://www.financedigest.com/what-does-2022-hold-for-open-banking-some-predictions-from-the-ecosystem.html "What does 2022 hold for open banking? Some predictions from the ecosystem") times or balance updates. Those that need more complex care can be diverted to contact centre agents for quick conversational support, [resolving issues](https://www.financedigest.com/apple-says-issues-with-imessage-facetime-resolved35792.html "Apple says issues with iMessage, FaceTime resolved") in one-to-one conversations that feel human.

**A new** [era of messenger banks](https://www.financedigest.com/why-open-banking-heralds-a-new-era-of-ecommerce-merchant-and-bank-collaboration.html "Why Open Banking Heralds a New Era of eCommerce Merchant and Bank Collaboration")

A disruptive breed of messenger banks have already realised the [potential](https://www.financedigest.com/embedded-finance-is-the-new-norm-in-banking-but-what-is-needed-to-unleash-its-full-potential.html "Embedded finance is the new ‘norm’ in banking, but what is needed to unleash its full potential? ") for interactive banking. Zelf, for example, is a “messenger bank” which uses an encrypted chatbot to [manage](https://www.financedigest.com/pragma-investments.html "Pragma Investments on Wealth Management versus Private Banking") users’ finances. It sends money via Facebook, WhatsApp, Telegram and Viber, removing the hassle of having to move from one app to another to transfer funds.

One of the [key elements of Zelf is speed](https://www.financedigest.com/vehicle-speed-monitoring-system-market-key-players-swot-analysis-key-indicators-and-forecast-to-2026.html "Vehicle Speed Monitoring System Market Key Players, SWOT Analysis, Key Indicators and Forecast to 2026"), where it takes mere seconds to open an account. After clicking on a launch link, a new conversation with Zelf pops open on WhatsApp or Facebook and promptly issues users their own IBAN account number and [virtual card](https://www.financedigest.com/virtual-cards-in-the-travel-industry.html "Virtual cards in the travel industry"), which they can transfer money to and ‘top up’.

The benefits speak for themselves. It’s a service which meets [consumers on the apps they spend](https://www.financedigest.com/as-consumer-spending-increases-convenience-and-security-have-never-been-more-important.html "As consumer spending increases, convenience and security have never been more important") most of their time on – WhatsApp and social media – while making sending and receiving money as easy as sending a message.

**Final words**

Zelf may be a new player to the market, but there is no reason why traditional [banks can’t also adopt](https://www.financedigest.com/why-banks-cant-adopt-digital-identities-fast-enough.html "Why Banks Can’t Adopt Digital Identities Fast Enough") WhatsApp Business, especially if they partner with the right solution provider to deliver the best use cases for customers.

With Gen Z set to [reshape the financial industry](https://www.financedigest.com/how-is-green-finance-reshaping-the-banking-industry.html "How is green finance reshaping the banking industry?"), those banks who strive to become early adopters of communications channels as a form of banking will no doubt outshine competitors. And now is the time to do it.


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