By Lisa Spira
Gen Z is growing up — and so is its spending power. Members of the “Zoomer” generation are opening their first bank accounts and starting to make bigger financial decisions, such as applying for loans or investing. A recent MX survey found that Gen Z is far less likely to have a traditional bank account than Millennials or Gen X, so banks face new, steep obstacles when trying to get and keep their attention, alongside typical challenges like high interest rates and annual fees.
It’s important to understand that Gen Z is hypersensitive to inauthentic content. This generation seeks a banking experience that anticipates and accommodates its evolving financial needs. So, financial institutions must adapt and personalize their outreach strategies to target and win the ongoing trust of this less traditional audience.
How can banks appeal to members of an audience who have spent the majority of their lives in the digital space? Banks benefit when they meet members of Gen Z where they are and how they bank. Here’s how:
Speak Gen Z’s language without trying too hard
As with any customer segment, when communicating with Gen Z, it’s important to reframe your marketing tactics in language that feels natural. This doesn’t mean that entire campaigns will always have to be catered to Gen Z, but subtle shifts in language and tone can translate offers into words that will resonate with younger generations.
Here are two sets of messages promoting a new cash-back card. The second variant — no different in meaning from the first — would be more palatable for a younger audience.
- Introducing 3 percent cash back with no annual fee. You may already be pre-approved. It’s easy to check, and there’s no impact to your credit score.
- $0 annual fee. No cap. Are you pre-approved for our new cash back card? Checking won’t hurt your credit score at all.
While speaking Gen Z’s language is crucial to building new relationships, voice also needs to remain true to brand identity. Messaging that is consistent with brand values and feels authentic will go a long way in resonating with Gen Z. Authentic messaging will also distinguish bank brand in a crowded marketplace. Not only is it important to build a strong messaging standpoint that is consistent and authentic, but there is great value in ensuring the values and tones incorporated into that messaging remain consistent across all channels and campaigns.
Embrace Gen Z’s digital savvy
When working to appeal to a younger, more digitally-savvy audience, financial services organizations benefit when they evaluate their digital experiences to ensure they are as good as the in-person experience, or even smoother. This generation is much more likely to connect digitally first, and in-person second, if at all. It’s important to adapt your brand’s engagement strategy to resonate with Gen Z’s connected and mobile-first lifestyle.
Banks should meet Gen Zers where they are — on TikTok, YouTube and Instagram, for example — alongside regular standbys such as email and SMS. Banks must do more than just engage on their owned channels. Since Gen Z often trusts guidance and information from influencers, it’s worth identifying and engaging with a few who are relevant to your business. Additionally, ensure brand and messaging represent Gen Z values (i.e. economic disparities, the state of the climate and brand inclusivity) without sacrificing brand identity.
Gen Z wants to support banks and businesses that walk the walk with social responsibility. Inclusion and community are common themes this cohort values and seeks out in the brands they prefer.
When relevant to bank brand and brand values, employ narratives and emotions that honor Gen Z’s values. This approach not only enhances engagement but strengthens brand loyalty among this influential group of consumers.
Take, for example, someone who is opening a first bank account. By leaning into a community narrative and an intimate emotion, banks could offer a phrase such as: “Welcome to XX, so glad you’re here!” Alternatively, highlight a program for socially responsible investing, or utilize messaging that highlights diversity and equity; two values consistently shown to be appealing to this generation.
Deploy emotionally-intelligent marketing language
Like every generation before it, Gen Z consumers respond to emotion in messaging, especially when that emotion highlights their values, such as community, or their voice, such as excitement. By driving higher response and engagement rates, emotion-informed language is likely to drive stronger results than control language.
Excitement is a strong emotion for financial brands right now, making it a particularly good choice for Gen Z communications. Examples of infusing excitement into banking messages — with language that resonates for younger audiences — include: “Easy banking — we love to see it.” Or “Banking that passes the vibe check.” While seemingly complicated, there are so many emotions to lean into, and any one of these can be adapted to feel more in line with how Gen Z communicates.
The young adults who make up Gen Z are continuing to define themselves and influence the market as they join the workforce and attend school. Financial services companies have much to contend with. From capturing the attention of Gen Z amid the endless content they are bombarded with daily on their preferred channels to refining marketing messaging to speak to, rather than at, them; and continuously adjusting offers and language to grow with this segment. Banks hit the mark when they are ready to continuously test new options and approaches to best learn about and support such a wide age group. These strategies are a strong framework for engaging with Gen Z so bank brands can secure and hold onto this generation’s interest.
Lisa Spira is VP of content Intelligence at Persado, an AI for marketing company.
