How Millennials And Gen Z Could Reinvent The Banking Industry
Allison Netzer, Forbes Councils Member shares how millennials and Gen Z—and fintech like Pocketnest—are completely revolutionizing the financial industry.
To lead and grow, banks must rise to the challenge of engaging these younger, massively consequential consumers through innovative new approaches to traditional banking. Getting it right will require more than adding digital features to legacy offerings. I don't believe simply digitizing current experiences will drive growth.
Where I see most organizations miss the mark with their digital strategy is failing to understand fertile market segments and offer differentiated value propositions. True next-gen innovation is as much about where you innovate as it is what you innovate on. To compete with startup challengers, traditional banks should identify and take advantage of new growth opportunities and quickly ramp up go-to-market strategies that closely consider millennial and Gen Z habits, expectations and preferences.
A growing number of fintech partnerships, incubators and accelerators are leading the charge with digital experiences that appeal to younger demographics’ demands for brands that are accountable and deliver value not only by using the table stakes of digital convenience but also by elevating the game with authentic experiences.
One example of how these components can successfully come together is the 1871 and BMO Harris Bank accelerator that is completely dedicated to women-founded fintech startups. According to Katherine Davis, its companies are creating products to simplify money management, investing and banking. Many in Gen Z grew up during the Great Recession and witnessed its effects on their parents. They watch millennials struggle with student debt, and now some are entering the workforce amid the Covid-19 financial crisis. Their experiences could make them more risk-averse than their millennial predecessors and especially hungry for financial literacy.
Read the full story in Forbes.