Gen Z: Retail banking's 'old souls'

Now that researchers have finished poking around every nook and cranny of the millennial psyche, it's time to move on.

Raddon, a Fiserv company, has done just that. The firm's new research peers into the financial preferences of the up-and-coming Gen Z cohort, and finds a notable streak of traditionalism among its members.

More than half (56 percent) of this group think that programs or seminars from financial institutions are very or extremely important as a source of personal financial information. And 35 percent have actually attended one, compared with just 12 percent of millennials, 11 percent of Gen Xers, and 16 percent of baby boomers and traditionalists.

Based on attitudes towards technologies, delivery channels, alternative providers and traditional FIs, Raddon identified three distinct segments of Gen Z:

• Conventionals: More than one-third (34 percent) express a preference for banking much as their grandparents did, face-to-face at a bank or credit union. They trust FIs and are distrustful of technology companies entering the banking space to provide financial services.
• Digitals: Thirty-seven percent say they prefer to bank via digital or electronic channels such as mobile banking provided by a bank or credit union. They believe technology companies will influence financial services, but expect they'll have to rely on traditional providers.
• Pioneers: Twenty-eight percent think all FIs are the same and want to bank in a way that is convenient for them. They believe their future financial services needs will be met by an array of providers. 

The report, Generation Z: The Kids Are All Right, is based on a survey of 2,500 high school students age 16–18.

An executive summary of the research is available for download.