For 66% of Zillennials, Mobile Phone = Bank Branch
- Zillennials are in the 20-something to early-30s age group
- Most Zillennials do thier banking via smartphone
- Banks need to adjust to Zillenial banking habits
Who are these "Zillennials" you ask? Well, they're the generation that straddles the line between millennials and Gen Z - the 20-somethings and early 30-somethings who grew up with smart phones surgically attached to their hands (check out this report from PYMNTS.com for more information on Zillennials).
According to a recent report from PYMNTS, this tech-savvy cohort is shaking up the banking industry; a whopping 66% primarily use their mobile phones as their "bank branch." As one PYMNTS analyst put it, "They navigate a complex financial terrain characterized by multiple income streams, including salaries, freelance work and gig opportunities, coupled with various forms of debt such as student loans and credit card balances."
As seen in the table below, Zillennials are amongst the higher adopters of all different accounts -- including checking (92%) and savings (82%):
Zillenials Prioritize Digital Experience
Zillennials aren't satisfied with just basic mobile banking - they want the whole digital experience.
They express a greater interest than other age groups in currently unused banking features, particularly live support and chargeback resolution. They also show a strong appetite for planning and budgeting tools and streamlined digital onboarding processes.
The graph below shows that Zillennials indeed have greater interest and desire to utilize all the tools available to them:
Banks Adjusting to Zillennial Desires
As noted in the article, even though Zillennialls prioritize digital experience, it does not mean they are jumping onboard to digital-only banks or neobanks. In fact, they are 23% more likely than the average consumer to primarily bank at national banks.
This is where banks -- from large national banks to local community banks/credit unions -- have an advantage in attracting and retaining a digital-first audience. A bank's reputation can only open the door, but providing the digital services that Zillennial's desire will enable banks a seat at the dinner table.
This include the ability to deposit checks via mobile app. As noted in the article, Zillennials have the most number of income streams including freelance work -- where checks still pay a major role, from physical services (lawn care) to design work (website development). Enabling Zillennials to save the trip to the branch or ATM is a feature that is looked upon positively by this particular age group.
Even in this digital environment, traditional payments like checks will continue to play a role. Banks need to ensure that the right technology, like AI-powered check processing technology, is in place to service these payments and streamline the process.