Generation Z is arguably the fastest growing segment of banking customers. According to ABA Banking Journal, Gen Z will soon edge out Millennials and become the largest demographic in the United States, with an estimated purchasing power of more than $44 billion collectively. Moreover, Gen Zers came of age more than a decade after the financial crisis that prompted the Great Recession, and their generation has never known banking that isn't mobile-centric.

The difference betweenMillennials and Generation Z

Generation Z consumers are markedly different from theirMillennial counterparts. Generation Zers are the obvious beneficiaries ofmobile technology, growing up exclusively in the Internet age. Also, unlikeMillennials, many Gen Zers grew up watching their parents struggle (andsometimes lose their homes) in the Great Recession.

Now, Generation Z is skeptical of taking on large amounts ofdebt to achieve their personal and professional goals. About 70% of thisdemographic are concerned about how much they should know about finances, aswell as how they will afford major life goals (i.e. buying a house).

Because of the differences between Gen Z and Millennials,and the enormous buying power that Gen Z will one day have, financialinstitutions must take care to engage them in a different manner. So, the nextgeneration of banking customers will be drawn to digital solutions that arestreamlined, intuitive and available at a touch of a button.

The challenge ofattracting Generation Z

Attracting young, new banking customers may be a significantchallenge for credit unions and community banks, especially those whose averageaccount holders are getting closer to retirement age. An estimated 19% of GenZers have an account with a credit union, and 12% have one with a communitybank.

As fewer account holders may visit bank branches, financialinstitutions are increasingly concerned about how to engage this new segment oftheir audience and establish primary banking relationships.

Developing digital relationships is a key to attractingyounger customers. This challenge can be handled with a knowledgeable andcommitted partner.

Larky and Generation Z

Larky is thepartner that financial institutions look to when establishing compelling,effective mobile advertising campaigns. Larky's promotion models generatetargeted geo-notifications to drive qualified leads in contrast to huge,ineffective expenditures of billboards and traditional advertising. The mobileapproach is effective because it focuses on potential customers where they are,and through a medium they use the most: their mobile devices.

However, banking relationships do not reside exclusively inmobile phones, tablets and laptop computers. Gen Zers still appreciate thepersonal interaction that comes with visiting a branch and engaging withanother person. Therefore, a mobile advertising campaign must encompass thehuman experience.

Larky helps financial institutions cultivate new contactsthat lead to lasting primary banking relationships. Contact Larky to learn more abouttheir strategies and product offerings.