Marqeta, a card issuing platform, has released a report highlighting the financial needs and concerns of those aged 12–23 in the UK, known as Generation Z or “Zoomers”(in a nod to the “Boomers” generation). The report, Generation Z: Their payments are our future, indicated that, despite being highly tech-aware and digitally savvy, Gen Z still lean heavily toward traditional financial services options.
Almost 9 out of 10 (87%) Zoomers say they currently bank with traditional providers, such as HSBC and NatWest. However, many are also interested in the prospect of banking with Big Tech, hinting at a future where Big Tech and financial services will become synonymous. Key report findings include:
- In the future, Zoomers say they would be most interested in banking with PayPal (44%), Apple (27%), Amazon (27%) and Google (22%).
- Just 12% report using challenger banks like Monzo and Revolut in some capacity: with 4% saying they use them explicitly, and 8% saying they bank with both traditional providers and challenger banks.
- More than one in five (22%) say that an easier way to pay through social media would be a key feature in selecting a financial services provider.
- Eighty percent of Zoomers still use cash weekly, suggesting that they are not yet ready to forego their physical wallets.
- More than half (54%) say offers and incentives would make financial services more attractive; other popular features include convenience and speed (34%) and better prices (31%).
“Gen Z’s interest in banking with the likes of PayPal, Apple, Amazon, and Google suggests that, to stand a chance, the financial sector must become more like the tech industry over the coming years,” explains Niels Pedersen, Senior Lecturer at Manchester Metropolitan University and author of Financial Technology: Case Studies in Fintech Innovation. “However, digital-first does not mean digital-only. A healthy balance between traditional and digital services must be struck for this generation – as the research shows. It’s vital for providers to build features and services that reflect these unique preferences and demands, particularly as 70% of the trendsetting Zoomer generation say they influence their families’ purchasing decisions.”