Snippet: Just as we thought we may have reached an understanding of millennials, the focus has shifted to Generation Z.

Just as we thought we may have reached an understanding of millennials, the focus has shifted to Generation Z.

This post-millennial generation, also referred to as the iGeneration and NetGen, are largely the children of Generation X, although some may be the early offspring of millennials. Whatever their name, the group born after 1995 not only contribute around $44 billion to the US economy annually, but will also make up a full third of the country’s population in just three years’ time.

While millennials were keenly affected by the last financial meltdown, Gen Z do not seem to be particularly budget-conscious. They are less inclined to make price comparisons or take advantage of coupon offers. They have grown up with social media, where brands engage directly with their followers. If a brand does not “speak to them”, they simply move on – and banks are no exception. Financial institutions must change their thinking in order to serve these new customers.

Millennials’ digital expectations have left their mark on the customer experience that payments providers offer, but Gen Z’s preferences will shake the industry to its core. Payments will need to be seamlessly integrated into experiences as immersive as virtual-reality shopping. Once inside a virtual store, for example, a consumer does not want to log into a payment app to complete a purchase.

The future is now

Major device vendors and software developers are already adapting their payments perspectives. Apple launched its new MacBook Pro with a Touch ID scanner payment button at the top of the keyboard. This system is also integrated with their iPhones for authentication. Meanwhile, digital assistants such as Siri and Alexa are enabling voice-activated ecosystems from which payments and other functions can be initiated.

 As new ways to engage with the world through technology emerge, it is clear that financial service providers will have to evolve their offerings quickly if they want their brands to remain relevant. Their role will be to provide services to a new generation of consumers who just don’t care about the complexities of securing their transactions and expect to transact effortlessly on every platform they use.

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Bronwen Kausch

WRITER

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Entersekt is an innovator of customer-centric fintech solutions. Financial services providers and other enterprises rely on our patented mobile identity system to provide both security and the best in convenient new digital experiences to their customers, irrespective of the service channel. With us, they can concentrate on their innovation roadmap, while delivering intuitive, low-friction digital experiences to their customers.