36 NOVEMBER / DECEMBER 2020 they must understand the root of the shift itself. Stemming from a completely digital childhood, millennials and Gen Zers have relied upon technology to streamline mundane tasks in their everyday lives. Dedication of time and labor as a means to success conceptually falls short for these generations. Technology aside, both Gen Y and Gen Z consumers have brought positive new values into the limelight. Inherently, they are driven to use locally, with an emphasis on building relationships. The preference to focus more on individual and personal interactions drives their choices as consumers. According to CT Business Travel, 80% of millennials prefer face-to-face meetings over virtual, with 87% of all professionals stating that face-to-face meetings are essential for networking and business. This easily translates into banking, especially when it comes to making financial decisions for the future. Millennial and Gen Z consumers need face-to-face interaction, particularly for complex financial transactions. These generations are hard-hit with obstacles that FEATURE A new decade is upon us. 2020 has brought forth shifts and paradigms through an economic and social lens. As baby boomers recede into retirement, generations Y and Z continue to solidify their stronghold on the U.S. workforce. The expectations of the next-gen consumer have paved the way to a new wave of innovation, convenience and change. Where consumers used to balk at putting financial information online, now it has become second nature. Transactions, investments and purchases are solidified with a single swipe, leaving the old-school manual mentality behind to sit and collect dust. But what’s driving these trends? What caused an online bookselling business to become one of the biggest companies in the United States? And despite the push to digital, how have brick-andmortar companies like Starbucks continued to thrive? The answer lies in the ethos of Gen Y and Gen Z. Gen Y, or millennials, are identified by anyone whose birth year falls between 1981 and 1996. Gen Z picks up where millennials left off, carrying through birth years into the 2010s. The generational combination represents more than half of the U.S. workforce. Both Gen Y and Gen Z have done their fair share of shaping the “new normal” across many verticals, particularly in finance and banking. With this generational shift, financial institutions must cater to the wants and needs of their new target consumers. Wants and Needs For financial institutions to successfully embrace the new shift in consumer demand, Now I Know my XYZs An in-depth look at next-gen banking James G. Caliendo President & CEO PWCampbell jim.caliendo@pwcampbell.com PWCampbell is an associate member of the Indiana Bankers Association.
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