Generation Z: what are the uses and expectations of banks among 15-26 year olds?

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Online Survey | January 2023

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Who are we?

Discurv is a new generation research institute that collects the opinions of citizens and consumers on social networks, on topics that concern them.

With its unique social sampling and analysis technology, Discurv provides companies with turnkey analyzed reports as well as a new understanding of their market to guide them towards the right strategic decision-making.

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BACKGROUND

Born between 1997 and 2010, Generation Z is now a real challenge for banks, insofar as their early entry into working life is a crucial moment in their life in their relationship with financial aspects. This population, which has been particularly weakened by recent crises, requires special attention. New expectations for banking institutions are emerging, and offers are multiplying to appeal to the youngest, especially from neo-banks.

It is in this context that Discurv, an institute for new generation studies, wanted to focus on this age group (15-26), from various aspects:

Take stock of the uses between traditional and online banks
Evaluate the perceptions associated with these 2 types of banks
Identify the main expectations in terms of banking offers and services
Measure their appetite for new technologies in the proposed payment methods
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METHODOLOGY

Discurv carried out this study with 502 French people aged 15 to 26 years old, representative of this age group in terms of sex & ages.

The survey was conducted via Facebook and Instagram from 06 to 16 January 2023.

→ Discover the full results of the study in the form of an infographic by clicking here.

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TRADITIONAL BANKS VS. ONLINE BANKING: WHAT ARE THE USES?

Traditional banks occupy a predominant place in the daily lives of young people aged 15 to 26, since 90% are customers, compared to only 25% who declare themselves to be customers of an online bank. Loyal to their bank, 72% of young people have never changed banks and 59% are customers of their bank because their parents are also there.

The entry into working life marks a new stage, with behavioral changes among 24-26 year olds:

44% of them have already changed banks (vs. 28% on average)
37% are customers of an online bank (vs. 25% on average)
24% of them changed banks to benefit from a loan (vs. 11% on average), and more precisely to make a real estate purchase (59% of them).

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TRADITIONAL BANKS VS. ONLINE BANKING: WHAT ARE THE DIFFERENCES IN SATISFACTION?

If we look at their level of satisfaction, 90% of Generation Z believe that their current bank meets their needs well. Young people particularly appreciate the payment methods offered (90%), the digital tools offered (81%) and the offers & services offered (74%) by their banks.

However, there are real differences in satisfaction depending on the type of bank owned. Online banks are much more satisfactory when it comes to:

The offers & services offered (91% | +20 points vs. traditional banks)
Digital tools (89% | +10 points vs. traditional banks)
The proposed rates (89% | +18 points vs. traditional banks)

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WHAT ARE THE INTENTIONS FOR CHANGE AND EXPECTATIONS FOR BANKS?

However, this Generation Z is volatile - insofar as their financial independence (recent or future) partly changes their expectations: 35% of 15-26 year olds plan to change banks in the coming months/years.

Obtaining better rates is their main motivation for change (42%), closely followed by their desire to have better offers & services (41%). Finally, this generation in search of meaning and aware of the environmental consequences of their actions, places in 3rd position the fact of giving priority to a bank committed to the environment (37%) .A CSR criterion that makes all the more sense when we know that 48% of young people surveyed are unable to comment on the environmental commitments of their current banks and therefore, to express themselves as to their level of satisfaction with this dimension.Note: the capital importance for banks to capture the moments of life. 33% of respondents would consider changing banks to obtain a loan or credit, especially in 2 age groups:

Among 15-17 year olds (49%) with the entry into the majority or the need to finance their studies
Among 24-26 year olds (47%) with the entry into professional life or the purchase of real estate

While managing their accounts independently via a mobile app is an important criterion for 96% of 15-26 year olds, having a personal advisor (84%) and being able to visit a physical branch (77%) also remain important for them, even if it comes second.

Finally, if we are interested in the services expected by young people, we note a real need for support: we find in first position the fact of understanding how to invest your money well (62%), followed by support in securing online purchases (60%), complemented by support in the administrative procedures (50%).

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WHAT TECHNOLOGICAL PAYMENT METHODS SHOULD BE PREFERRED FOR THE FUTURE?

While the use of contactless payment with bank cards has accelerated and is used by the vast majority of young people (93%), contactless payment with a smartphone is not yet fully democratized: only 39% of Gen Z use it.

Having always known the Internet and focused on new technologies, 25% of Gen Z have already tested fingerprint payment and 58% say they are ready to use it in the future.Moreover, although only 4% of 15-26 year olds have already used payment with the iris, 37% of them plan to use this payment method. New technologies in the banking world therefore have a bright future! ... as long as you seize opportunities at the most opportune moment, in a time of life filled with upheaval.

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THE 10 HIGHLIGHTS - WHAT YOU NEED TO REMEMBER

90% of 15-26 year olds are customers of a traditional bank... compared to 25% who are customers of an online bank
72% of Gen Z have never changed banks, and 59% have chosen the same bank as their parents
However, we note that 44% of 24-26 year olds have already changed banks (following their entry into working life), and 37% have opted for online banking.
Online banks are much more satisfactory for young people in terms of digital tools, the offers & services offered as well as the prices offered
35% of 15-26 year olds plan to change banks in the coming months or years
Managing accounts independently is more important than having a physical advisor (96% vs. 77%)
62% of young people want banks to help them understand how to invest their money well
93% of young people use contactless payment with a bank card while only 39% of them use contactless payment with their smartphone
23% of young people have already used fingerprint payment, but 58% of young people would be ready to use it in the future
Similarly, only 4% of young people have already used iris recognition payment, but 37% of young people would be ready to use it

Amélie CUREL, Marketing Manager | 06 60 16 54 19/ amelie@discurv.com

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