AUSTIN, Texas–New research has found that across all generations there are opportunities for financial institutions if they more effectively respond to desire for increased security and fraud protection, as well as provide more personalized online experiences.
The research conducted by The Harris Poll in Q1 of this year and commissioned by Q2, included respondents from Gen Z (ages 18- 26), Millennials (27-42) and Gen Xers/Boomers ages 43 and older.
The Key Findings
Among the Findings:
It’s Not Just Gen Z
According to the survey results, consumers in all age groups show a strong preference for personalized online services, Q2 reported. The survey found:
- 74% of respondents across generations want more personal banking experiences
- 50% agree that their current digital banking app anticipates their needs
- 66% of all consumers are comfortable with their financial institution using their data to personalize their experiences
- 41% say their financial institution occasionally surprises them with relevant support or options
- 22% say it regularly feels like their financial institution is reading their mind.
“As AI accelerates the transformation of consumer experiences and expectations, financial institutions need to go beyond marketing products to the masses,” Dallas Wells, SVP-product strategy with Q2 said in a statement. “They need to use data to deliver dynamic and personal experiences. Financial institutions can achieve this through a know, serve and grow framework, using AI and consumer data to build targeted segments, create personalized dashboards, and deliver capabilities beyond traditional banking.”
Younger Consumers Present An Opportunity
In releasing its findings, Q2 noted that for young consumers banking has become more than transactional and integrated into their everyday lives.
“Compared to their older counterparts, Gen Zers rely more heavily on digital banking services to help guide their decision-making and improve their financial status,” the company said. “At the same time, in-person banking services are important to them too, further signaling Gen Z’s dependency and trust in financial institutions. As Gen Z consumers get older and acquire more wealth, there is an opportunity for community financial institutions to gain primacy and Gen Z deposits by using segment analysis and differentiated banking capabilities to evolve alongside this cohort.”
The Findings:
- 55% of Gen Zers access their bank’s mobile app or website everyday, compared to just 41% of Gen Xers and Boomers.
- 60% of Gen Zers said they have noticed a positive impact on their financial habits or goals due to personalized digital banking features, compared to just 33% of Gen Xers and Boomers.
- Though 100% of Gen Zers had banked online in the past month, only 43% prefer banking online, compared to 63% of millennials and 57% of Gen Xers and Boomers.
- 65% of Gen Zers prefer opening an account in person, compared to 58% of Millennials, Gen Xers and Boomers.
As AI Grows, Consumers Expect Banking Security to Follow
Q2 said the research found that while most consumers trust banks and credit unions, they also expect technological improvements to drive better security for their data and assets.
The survey found:
- 70% of consumers agree the banking industry is trustworthy
- 70% of consumers are on board with the use of AI for advanced fraud detection
- When asked how their financial institution can improve their customer experience, 44% listed higher levels of financial data security as their top priority
- 48% expect their financial institutions to implement increased protection for their financial data in the next five years as AI becomes more prevalent.