Independent Banker - June 2020 - 58

averse to risk and credit. They want high-yield
accounts and are already thinking about saving
for retirement.
Nikhil Srinivasan, cofounder and COO
of Zebra IQ, a Gen Z insights and trends
company based in San Francisco, says it is more
than that.
While bankers assume this generation has
high technology expectations-which is true-
they are also seeking fi nancial guidance and
IRL (in real life) experiences. " They expect the
world's information and capabilities at their
fi ngertips, but they also expect really strong
brand trust, " Srinivasan says.
That's great news for community bankers
who already possess loyalty and are positioned
" Ten years ago, if your website was
down for a few hours, it wasn't the
end of the world. Today, if your mobile
banking product is down for minutes,
... it's a real threat to the relationship. "
-Bob Montgomery-Rice,
Bangor Savings Bank
to be this generation's experts. The question is:
How can operations prepare you to extend your
brand into the digital world of Gen Z?
While megabanks may seem hard to compete
with, they have a harder time personalizing
services in the way many Gen Zers expect.
" Retail banking is not going anywhere, "
Srinivasan says. " Yet, they need to evolve their
locations beyond a couch and a bowl of candy. "
Partnerships are key
First National Bank in Las Animas, Colo.,
focuses on banking business specifi cally in the
agricultural community. The $375 million-asset,
seven-branch community bank is planning to
meet Gen Z's needs with a long-term strategy.
Rather than actively recruiting young customers
now, the bank is building rapport with Gen Z
by readying them for their business life. The
community bank sponsors sports programs and
fi nancial literacy classes, off ers free popcorn
at basketball games, and maintains an active
presence in nearby schools with staff serving as
coaches and school board members.
" I think those things are highly valued by
the owners of agricultural businesses and their
kids, " says Ben Johnson, First National Bank's
The two youngest generations
have key differences. Nikhil
Srinivasan, chief operation
officer of market research
and consulting firm Zebra IQ,
says there's a noticeable line
between Gen Z, a generation
that grew up never knowing
a time before the internet,
and millennials. Here are
five areas where Gen Z is
differentiating itself:
GIFTS
Millennials like gift cards, while
Gen Zers prefer gifts via mobile
payments apps like Venmo and
Cash App. When young teens are
broke and call out to their friends
on social media, they're rewarded
with multiple low-dollar, in-app
gifts. That phenomenon off ers
back-off ice teams an opportunity
to reconsider how the popularity of
social lending could influence their
community bank's products.
58 Q ICBA Independent Banker Q June 2020
KNOWLEDGE
Gen Zers learned from an early
age by searching for answers on
YouTube. Banks would be wise to
off er educational videos to educate
this generation about financial
planning. They want to know how
to allocate investments as small
as $50. They may seek guidance
on managing their monthly " burn
rate, " Srinivasan says, so that they
can budget for higher housing and
tuition costs.
Independent Banker - June 2020

Table of Contents for the Digital Edition of Independent Banker - June 2020
