Banking Industry

Highlights

 The banking industry has a reputation problem, which makes it easier for challenger brands to break into the finance
scene.
 Seamless digital experiences are a must for any bank
 The ease of staying stagnant often outweighs the benefits that banks can offer people to switch
 Perceptions of immoral industry practices, from using tax havens to supporting the arms trade, has heightened the desire
for ethical banks
 Young people who struggle with budgeting often feel judged and misunderstood by banks.
 Interest rates become more important as people get older – 47% of Seniors and Boomers, compared to 25% of Gen Yers
consider it a top priority.

Maybe I would switch if there were some sort of reward or offers. Something a bit different, like a 16-25 Railcard or Spotify
subscription, or boring stuff like insurance deals. The ease of internet banking is important too.

I would definitely need some financial incentives to consider moving in the first place. Free money and vouchers upon
switching would probably be top of my list for my current account, as there’s little else that sets the banks apart. I have a few
savings so would also look for an improved interest rate; perhaps an ISA or savings account with a good rate.

I like the idea of being part of an ethical bank – for example, if they offered skills courses for young people in UK and
developing economies, that would attract me. Also, green credentials – that would be important to me.

Insights

Banking might never be a joy, but it could be less of a pain. Overwhelmingly, people are looking for banks to make their lives
easier. While face-to-face customer service hasn’t gone out of style, especially when problems crop up, a seamless digital
banking experience has become synonymous with convenience for many people.

CARD PAYMENTS

 The number of digital transactions is growing exponentially around the world, including the UK
 But there is a large group of people who still rely on cash payments and are at risk of being left behind in the drive for
innovation.
 There are many reasons for this – one important one being able to budget. “When you pay with cash you kind of
experience a form of psychological pain, which isn’t the same as when paying by card,” says Clarke.[9] Experiments have
shown that people are less able to control their spending when using payment cards; TheFinancial Times cites one such
experiment, which shows that people were willing to spend 240% more if paying by credit card than by cash.

GEN Z BANKING

 Dave’s platform is designed to help people stay on top of their finances by keeping track of the net amount in their
account
 With budgeting less common among younger people, they’re outsourcing these tasks to apps and tools
 As younger users move toward fintech and challenger banks, they’re looking for plain-language financial services
 Gen Zers are, by and large, a financially conservative cohort, striving to be debt-free and independent from their parents
 They expect to access their financial information the same way they access their friends, family, and even other brands –
on their phones
 Although Gen Zers are hesitant to get credit cards and traditional loans, they’re comfortable paying in instalments
through ‘buy now, pay later’ platforms
 A lack of financial education has them seeking advice from friends, family, and the web – but not banks
 75% of Americans aged 18-34 define ‘adulthood’ as being financially independent from their parents and 60% say financial
success means being debt-
 https://www.canvas8.com/library/reports/2019/10/02/gen-z-money