Brand-To-Cult: Gen Z and Millennials’ Future Banking & Marketing

Brands are struggling to connect with digital-native Gen Z and Millennial customers who demand more transparency, personalization, and social responsibility from the brands they support. But what does the future of banking and marketing look like for these young adults?

Brand-To-Cult: Gen Z and Millennials’ Future Banking & Marketing

There's no question that banks and other financial institutions are struggling to keep up with the ever-changing preferences of younger generations. In order to stay relevant, banks need to start marketing themselves as cult brands.

What is a cult brand? Put simply, it's a brand that has a passionate following of customers who believe in its mission and values. These customers are willing to go above and beyond to support the brand, whether that means promoting it to their friends and family or spending hours online defending it against its haters.

Cult brands aren't built overnight; they take years of careful planning and execution. But if done right, the rewards can be huge. Not only will cult brands be able to better retain their customers, but they'll also have an easier time attracting new ones.

So how can banks become cult brands? For starters, they need to focus on creating an emotional connection with their customers. This can be done by highlighting the personal stories of their employees and customers, as well as by supporting causes that their target audiences care about.

They also need to be more transparent about their business practices and make a concerted effort to build trust with their audiences. And finally, they need to provide an exceptional service.

How Gen Z thinks about banking

There is no question that banks need to adapt to the way that Generation Z thinks about money and banking. This group is uniquely positioned to change the way that banks operate, and they are already doing so.

One of the biggest differences between Gen Z and previous generations is their relationship with money. For Gen Z, money is not something to be saved or invested; it is something to be spent. This generation is more likely to use credit cards and other forms of debt to finance their purchases, and they are less likely to have savings accounts.

This approach to money can be a challenge for banks, which are used to customers who deposit their money and then withdraw it as needed. But it also presents an opportunity for banks to offer new products and services that appeal to this generation.

For example, some banks are now offering prepaid debit cards that can be used like credit cards but without the fees and interest charges. These cards can help Gen Zers manage their finances without getting into debt.

Banks also need to rethink their approach to marketing. Traditional advertising is not as effective with this generation, which is used to ignoring ads or blocking them altogether. Instead, banks need to focus on creating content that is genuinely useful

How banks are responding to Gen Z demand

The arrival of Generation Z is already having an impact on the banking sector. This generation, born after 1996, is coming of age and starting to influence household spending and saving patterns.

banks are Responding to Gen Z Demand in a number of ways:

1. They are offering more mobile and digital options.

2. They are rethinking branch locations and layouts.

3. They are increasing their focus on financial education.

4. They are partnering with fintech firms to offer innovative products and services.

5. They are making sustainability a priority.

6. They are investing in cutting-edge technology, such as artificial intelligence and biometrics.

7. They are building strong relationships with Gen Z influencers.

What CMO should keep in mind when marketing to Gen Z

As the oldest members of Gen Z reach adulthood, they are starting to have a significant impact on the economy and culture. This is especially true when it comes to their spending power and purchasing decisions. As such, it's important for marketers to understand this unique generation and what they are looking for in brands.

Here are a few things to keep in mind when marketing to Gen Z:

1. They Are tech-savvy and Connected

Gen Z grew up with technology at their fingertips and are extremely comfortable with it. They are also very connected, with nearly half of them using social media several times a day. This is a generation that is used to getting its information and entertainment online.

2. They Are Skeptical of Traditional Advertising

Because they are bombarded with marketing messages from all sides, Gen Z has developed a strong sense of skepticism when it comes to advertising. They can see through most traditional marketing ploys and are more likely to respond to authentic, honest messages.

3. They Value Experience Over Stuff

While previous generations might have been happy to accumulate a lot of stuff, Gen Z would rather experience life. They are more likely to spend money on travel, dining out, and other experiences than on material possessions.

4. They Are Looking for Purpose-Driven Brands

When Gen Z is making purchasing decisions, they are looking for brands that align with their values and that they can believe in. This is a generation that is passionate about making a difference in the world, so they want to support brands that are working towards positive social and environmental change.

5. They Appreciate Transparency

Gen Z has little patience for businesses that are not transparent about their practices. They want to know where their products come from, how they were made, and who is behind the brand. They will quickly lose trust in companies that try to hide information or mislead them in any way.

Read more about what to keep in mind when marketing to Gen Z here

Conclusion

Gen Z is a powerful and influential generation that is already starting to have a major impact on the economy. As they enter adulthood, it's important for marketers to understand their unique perspectives and needs. By keeping the above points in mind, you can develop marketing strategies that will resonated with this important target demographic.