Independent Banker - December 2024 - 46

needed to do that to build credit. Especially
in situations like this, she notes, education
is important, because it can be hard to
fi gure out what the truth is.
Possibly the best way to get in front of
Gen Z with information like this is social
media. In some cases, that might be posing
a simple question, such as, " Do you know
how to use credit cards to improve your
credit score? "
" As a community bank, we should be
doing more little tidbits like that that
are going to be benefi cial, " says Crabill.
A simple social media post can then
link back to the bank's resource page
or give information on how to schedule
a consultation.
" It's important for us as bankers to
explain how the credit card will help
to build credit, " agrees Michele Roark,
director of community banking sales
and service at $27.1 billion-asset United
Community in Greenville, S.C. Among its
credit card products, United Community
off ers two secured credit card options: a
secured card and a max cash secured card.
With both card options, the customer
also opens a savings account that acts as
collateral for their credit card account.
The bank also off ers a
CD-secured loan that
helps to build credit.
The borrower makes a
monthly payment at a
very minimal interest
rate and then also
receives the interest rate
proceeds from the CD at
the end of the loan.
Gen Z has a diff erent perception of money: They opt for debit
cards and digital payments, like Venmo and Apple Pay, over
paper bills. According to the Capgemini Research Institute,
noncash transaction volume in North America is expected to
increase 6.4% this year to $252.6 billion.
While physical money remains a primary source of
allowances for younger Gen Z, a predominately cashless
landscape " creates a major challenge for parents to teach
their kids good financial habits, " says Pawan Murthy, chief
marketing off icer at Rego Payment Architectures Inc., a
white-labeled digital family wallet
software company.
With retailers and even schools
moving away from cash transactions,
the younger generation is becoming
accustomed to " instant gratification "
from their purchases through tapto-pay
apps and quick-turn delivery
services like DoorDash. Murthy
emphasizes that in this age of instant
gratification, Gen Z needs the proper
tools and education to better understand the value of a
dollar. In turn, he says, community banks should leverage
youth banking products that blend digital conveniences with
educational tools, fit for this tech-savvy audience.
Gen Z financial goal #3:
-Frank Buonomo,
Brentwood Bank
Gen Z is embracing myriad
credit options, from
traditional credit cards to
buy now, pay later (BNPL)
options and " click and
buy " mobile commerce
that makes impulse buying
easier than ever.
According to Experian,
the average Gen Z consumer
is seeing their debt grow,
with average balances as of
2023 including $3,262 in
credit card debt, $20,305
in auto loans and $21,574
46 // ICBA Independent Banker // December 2024
Independent Banker - December 2024

Table of Contents for the Digital Edition of Independent Banker - December 2024
