Independent Banker - September 2024 - 57

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Next-generation opportunities for community banks
Banking is changing
and so are its
customers. With techsavvy
Generation Z
now coming of age,
there's a rapidly
growing demand
for mobile banking
services - and less
everyday need for
branches.
Justin Monk
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The innovation cycle
is accelerating,
competition is
intensifying and
traditional FIs are fighting
non-bank fintechs for
market share. But there's still a window of opportunity for
community banks to attract and retain younger consumers.
Core financial services still count
The good news is your youngest customers are no strangers
to traditional banking services. In a survey of U.S. Gen Zers,
98% hold a checking account, 88% a savings account and
77% a credit card.
However, 99% of Gen Zers access their bank with a mobile
app, with 61% logging in at least once a day. And although
88% look most to friends and family for their financial
education, 46% admit to relying on social media, websites,
blogs and podcasts.
So, it's more critical than ever to hook in these digital natives
fast with digital-first experiences - and extend your value
proposition into the virtual spaces Gen Zers frequent.
But you need to talk up your traditional selling points, too.
Unlike fintechs, community banks are heavily regulated -
which instills confidence in customers that their finances are
safe and secure. You also have a greater ability to build longterm
relationships by meeting a full range of financial needs.
What's more, many older customers still prefer the face-toface
contact that a traditional branch provides. But they may
interact with your organization digitally, too, so you need to
take an omnichannel approach and offer the same products
and services in the same way across all touchpoints.
It pays to strike a balance
When it comes to making payments, younger customers
use both digital and physical methods. While 56% of Gen
Z usually use a physical debit card to make everyday
purchases, credit cards via mobile wallets are the top choice
for buying costlier items.
Meanwhile, almost half of Gen Z are comfortable with the
concept of borrowing money, and more than half have no
problem securing credit. But for the vast majority, having a
good credit score is an important life goal.
All of which shows how vital it is to retain customers through
different stages of life. As they age, consumers will look to
you for a wider range of products, steadily increasing their
lifetime value.
So, although you need to increase your relevance to younger
customers, you must also keep your older customers close,
build on your reputation for relationship banking - and
balance innovation with your obligations as a regulated
institution.
With robust digital processes, the highest standards of
security and the backing of one of the world's largest
financial technology companies, FIS Payments One can help
you strike the right equilibrium with a single modern card
processing platform. And as a technology partner, we can
support you on every step of your digital journey.
It's time to modernize for growth - and there are new ways to
do it. Get in touch to find out more.
fisglobal.com/contact-us
http://www.fisglobal.com/contact-us
Independent Banker - September 2024

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