Many FinTech startups attempt to impress young people with apps and digital offerings. However, new research suggests that it will not be enough.
In fact, 74% of Gen Z said their parents’ advice was the biggest deciding factor for them when picking a new bank, according to consultancy firm Capco’s survey of 100 people born in the mid- or late 1990s.
Other factors like product offers, free gifts or money and marketing held sway over 8%, 7% and 5% of people’s choices respectively.
Unsurprisingly, given the influence parents had on their childrens’ decision, incumbent banks had more business with the people polled than new players in the market. For instance, Santander was picked by 24% and NatWest by 21%.
The only two challenger banks that the people in the survey was using were Monzo and Starling Bank which catered to 2% and 1% respectively of the people polled.
“When marketing products and services to the Gen Z and younger demographics, think of ways in which you can also communicate directly to parents,” Harriet Webster, the report author, told Consultancy.uk.
“After all, over the past decade, the number of young people living at home having risen by 24%, and today, so there should be scope for some meaningful conversations about financial matters between Gen Z and their parents! Marketing and free gifts particularly held weight with our younger employees’ bank choices. Banks should think about what they can offer to make a difference to their customers’ quality of life.”
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