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ARE BANKS BOOMERISH?

— Banking branches and New Gen —

 

We are currently designing the customer experience and the associated brand identity and space for a bank aimed at younger generations.

While branch visits are becoming less frequent, their relevance remains even more significant, and we’re helping redefine how to engage the infamous Gen Z in the branch physical touchpoints, within a wider digital journey.

Here some insights

Gen Z is getting older…

Gen-Z actually means nothing: general attributes related to generations are only approximate indicators of macro-behaviours and attitudes related to specific contexts. BUT…Let’s suppose their existence, for this insight’s sake…

As Generation Z transitions into adulthood, their financial habits and expectations are reshaping the banking landscape. With 11% expecting to get engaged or married in the next six months (GVI Global Research, February 2024), financial planning is becoming a priority. However, traditional banking institutions may not be fully aligned with their needs and preferences. Are banks still relevant to this new generation, or are they perceived as outdated?

 

Understanding Gen Z’s Financial Mindset

Gen Z is often generalized as a tech-savvy and socially conscious generation, but broad generational labels only provide an approximate understanding of their behaviors. What’s clear, however, is their strong economic consciousness:

  • 29% report being prone to anxiety, which may translate into financial caution.
  • 40% fall into the low-income bracket, yet they prioritize saving over spending.
  • Ethics and transparency remain crucial values for them.
  • They exhibit a pragmatic approach to finance, seeking real benefits and clear terms.
  • Many hold a pessimistic view of the future, making financial security a key concern.

 

 

 

 

GEN-Z DOESN’T LIKE GOING TO THE BRANCH? WELL, ACTUALLY WHO DOES?

Despite being digital natives, Gen Z still acknowledges the importance of physical bank branches. There is a cultural gap and a bias when it comes to relating to traditional, old-fashioned banks. However, they visit them less frequently than older generations and expect a vastly different experience:

  • Digital banking is a must-have, allowing for simplified interactions and financial management
  • Traditional branches are seen as outdated, with a cultural gap between Gen Z and old-fashioned banks.
  • Branches must evolve, moving from transactional spaces to interactive, experience-driven hubs.

 

 

BANKING: LESS BUT… MORE!

To appeal to Gen Z, banks must rethink their positioning and value proposition. Some key areas of focus include:

  • New touchpoints and formats – Moving beyond traditional branches with pop-up locations and hybrid spaces.
  • A fresh brand identity – Crafting a unique tone of voice and communication style that resonates with younger customers.
  • Enhanced customer experience – Training staff to engage Gen Z effectively and creating personalized banking journeys.
  • Phygital banking experiences – Seamless integration of digital and physical banking interactions.

What Gen Z Wants from Banks

To bridge the generational gap, banks should prioritize:

  1. Enhanced Knowledge – Offering concrete financial insights and education.
  2. Increased Accessibility – Providing advisory services and meetings both digitally and in person.
  3. Authentic Engagement – Partnering with brands, companies, and influencers to create meaningful activations.

Simplicity and Proximity – Reducing formalities and making banking more approachable.

The Future: Banking as a Hub

The traditional banking experience, with its rigid structures and formal environments, is becoming obsolete. Instead, banks should aim to create hybrid social hubs that foster community engagement and financial well-being.

The shift from hierarchical banking to horizontal, interactive spaces is essential for staying relevant to younger generations.

We are envisioning space as a gathering of people, with different possibilities to talk, share, listen, and plan—addressing real life in an honest and horizontal approach. Fewer moments of interaction, but more valuable ones.

At the same time we may shift to spaces that represents care for the territory through real activations and elements of membership and belonging. A social hub that can change and adapt according to needs, integrating third-party products and services.

By embracing innovation and redefining their role, banks can remain integral to Gen Z’s financial journey—ensuring they are seen as facilitators of financial empowerment rather than relics of the past.

For insights on creating less boomerish banking formats, contact: info@dinndesign.com