Independent Banker - January 2022 - 53

online tools that show real-time feedback on
debit card spending.
" Our message is that we get who you are,
we're also young and we're here to help you
figure it out, " Myler says.
Almost three in four Gen Zers say they won't
use a bank or credit union that doesn't offer
online account opening, even though just 57%
prefer to open an account online, according to
research by MANTL, a New York City-based
bank technology company. " It's indicative of
how forward-thinking that financial institution
is, " says Nathaniel Harley, CEO of MANTL.
This is especially true for Gen Z small
business customers. Ninety-one percent say they
are most likely to open an account online, and
82% say they are likely to open an account with
a community bank or credit union, though 100%
also said they'd open an account with a fintech.
While Gen Z is just as entrepreneurial as
previous generations and open to new ways
of banking, they are more risk averse and less
likely to jump in with both feet, Dorsey says.
" They like the idea of starting a business on the
side, partnering with friends and starting their
own business as a second income stream, " he
adds. " They want a side hustle. "
That creates opportunities for community
banks to mentor small businesses-perhaps
even in person. Although Gen Zers spend much
of their time online, they are more likely to
want to engage face to face with their primary
financial institution (17%) than are millennials
(12%), according to Raddon, a Fiserv-owned
research firm.
* A note of caution *
This is a reminder that while Gen Zers
share many characteristics, it's dangerous to
paint them with a broad brush. In the end,
they are a diverse group of individuals and
expect to see that diversity reflected back at
them in advertising, employees and board
representation. They can be loyal customers, but
they want to know they are being treated right,
and that means nimbly serving up banking
services the way they want them: both in person
and online.
" Step back and look at the generations and
regions you serve, " Dorsey says. " Don't rely on a
sample group of one. [Gen Z is] a diverse group
with diverse views of the world. "
Kelly Pike is a writer in Virginia.
independentbanker.org Q 53
A green light for
Gen Z fee income
Imagine if parents paid your
community bank $4.99 so their
kids could use your debit card.
That's exactly what Greenlight gets
from 4.5 million parents and kids
on top of interchange income.
The Mastercard-branded debit
card is linked to a mobile app that
lets parents automate allowance
payments, manage chores, set
spending controls for specific
stores and track spending with
real-time alerts for up to five kids.
Kids can collect interest, add the
cards to Apple Pay or Google Pay,
set up direct deposit for their
paychecks, engage in charitable
giving and get 1% cashback
on purchases.
Money can also be placed into
a connected savings account
that earns 2% interest. The card
is issued by $730 million-asset
Community Federal Savings Bank
in Woodhaven, N.Y.
" It solves the problem of parents
giving money to their 14-year-old
kid, " says Jason Dorsey of the
Center for Generational Kinetics
(CGK) in Austin, Texas. He notes
that kids prefer digital funds
that can be spent online and at
cashless establishments. " The child
probably thinks Greenlight is a
bank, even though it isn't, " he adds.
Illustration by CACTUS Creative Studio / Stocksy
http://www.independentbanker.org
Independent Banker - January 2022

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