By Xav Harrigin

Digital, Sustainable, Local: Why Gen Z is Banking with Community Institutions

In today’s digital age, understanding Gen Z’s banking preferences is paramount. As the banking sector undergoes significant transformation, community banks are at the forefront, adapting and evolving to cater to the unique needs and expectations of Gen Z.

Understanding Gen Z Banking Preferences

Generation Z, with their digital-first mindset, is reshaping the banking landscape. Their inclination towards mobile banking, as highlighted by a study from Morgan Stanley Research and AlphaWise, showcases their tech-savvy nature. With Millennials and Gen Z forming the largest generational demographics in the U.S., as noted by Forbes, they are driving a shift towards digital solutions in banking. Insider Intelligence’s projections further emphasize this trend, estimating that by 2023, a staggering 33.7 million Gen Z consumers will adopt mobile banking. Amidst these changes, community banks, renowned for their transparency and community engagement, are strategically positioned to meet Gen Z’s evolving banking preferences.

Deep Roots in Community Engagement

Community banks have always been integral to local economies, playing a crucial role in the U.S. financial system. The FDIC’s 2023 report accentuates the significance of these banks, especially in their contributions to small business owners, farmers, and rural communities. Despite facing challenges, as highlighted by the St. Louis Fed, community banks continue to thrive, offering tailored services and fostering trust and belonging, attributes often overlooked by big banks.

Genuine Commitment to Sustainability

Sustainability is more than just a buzzword for community banks. The FDIC’s 2020 Community Banking Study and a case study by S&P Global emphasize the genuine efforts of community banks in adopting sustainable practices. From reducing greenhouse gas emissions to conserving natural resources, community banks are setting themselves apart, making them a top choice for those who prioritize environmental responsibility, especially Gen Z.

Investing with Purpose

The Global Sustainable Investment Alliance (GSIA) underscores the growth of the sustainable investment industry, now valued at an impressive US$35.3 trillion. Insights from Morgan Stanley’s Sustainable Finance Summit further highlight the increasing demand for sustainable investments. Community banks, with their deep community ties, are uniquely positioned to tap into this trend, offering investment options that align with Gen Z’s ethical and environmental considerations.

Financial Literacy with a Twist

Promoting financial literacy has always been a priority for community banks. Initiatives by the American Bankers Association Foundation, coupled with the Consumer Financial Protection Bureau’s 2019 Financial Literacy Annual Report, showcase the dedication of community banks in providing comprehensive financial education. By integrating ethical and sustainable principles, community banks offer a holistic approach to financial literacy.

Making a Local Difference

Community banks are synonymous with local impact. A nationwide survey by ICBA Morning Consult Intelligence and data from USAFacts highlight the positive sentiment and significant financial influence of community banks. Their commitment to local initiatives, genuine connections, and community growth sets them apart in the banking sector.

Conclusion

As community banks continue to adapt and innovate, they are set to play a pivotal role in the future of banking, especially in catering to Gen Z’s preferences. Their unique blend of traditional values, innovative approaches, and genuine commitment to sustainability and community engagement positions them as the ideal financial partners for Gen Z.

By Xav Harrigin

The banking industry is undergoing a digital metamorphosis, with Generation Z (Gen Z) leading the charge. Data from Morgan Stanley Research and AlphaWise reveals a growing trend: a significant portion of young smartphone users are already onboard with mobile banking. Insider Intelligence’s projections further emphasize this, predicting a surge in Gen Z mobile banking users by 2023. However, Experian’s insights suggest there’s room for improvement, especially in the onboarding process. As Gen Z’s digital preferences evolve, community banks face the pivotal task of merging their time-honored values with the digital banking demands of today.

The Era of Digital Dominance 

The shift towards digital banking is clear and undeniable. Forbes Advisor’s recent data showcases the majority of U.S. adults now prefer banking via digital platforms, a stark contrast to those still favoring in-person banking. Deloitte’s survey provides a deeper dive, highlighting the digital expectations across generations, especially Gen Z. McKinsey’s findings align, spotlighting the growing demand for top-tier digital services. For community banks, this digital era is both a challenge and an opportunity. Staying at the forefront requires not just acknowledgment but active adaptation to these evolving preferences.

Merging Old-world Charm with New-age Tech

As the banking landscape evolves, there’s a clear trend: traditional bank branches are on the decline, as highlighted by Bankrate. This shift suggests a move towards a more digital-centric model. However, the heart of banking isn’t solely in technology. McKinsey emphasizes the importance of integrating modern tech without losing sight of foundational values. Deloitte’s findings resonate with this, pointing to the need for a balance between the efficiency of digital platforms and the personal touch that has long defined good banking. In essence, the future of banking will be about blending the best of both worlds: leveraging the convenience of digital advancements while preserving the trust and relationship-driven approach of traditional banking.

A Win-Win Digital Transition 

The digital transformation in banking is more than just a trend; it’s a game-changer for both banks and their customers. G2’s insights emphasize the enduring nature of this transition. KPMG showcases the myriad advantages of digital tools in banking, from capital decisions to enhanced customer experiences. Forbes delves deeper, highlighting the holistic transformation in banking processes. A case in point from Deloitte: Bank of America’s shift towards mobile deposits, is attributed to their robust digital investments. For community banks, this digital era is a golden opportunity, promising mutual growth and benefits.

Conclusion

The banking sector is at the dawn of a digital era, steered by Gen Z’s tech-savviness and the broader shift towards online platforms. This transformation is foundational, reshaping banking interactions from the ground up. Community banks stand at a crossroads, tasked with integrating digital advancements while preserving their core ethos. The essence of personal touch and community trust remains invaluable. In this digital epoch, community banks are poised to redefine banking, ensuring they’re ready for both today’s demands and future challenges.

By Xav Harrigan

Alright, fam, in this #DigitalDomination era, you, the Gen Z micro-influencer, are setting the pace. Whether you’re vibing on TikTok, showcasing on Insta, or sharing thoughts on YouTube, you’re not just building a brand; you’re building a business. But here’s the real tea ☕: as your digital influence grows, so does your need for some serious banking game.

With a sea of banking options flooding your notifications, how do you sift through the noise? You need a bank that vibes with the #InfluencerHustle. Enter community banks – think of them as the cozy local café of banking, offering both personalized services and the financial wisdom you’re after.

Community Banks: More Than Just a Bank 💸 

So, what’s the tea on community banks? They’re not just about storing money; they’re about building relationships:

• Local Vibes: These banks are tuned into the local scene, offering #FinancialAdvice that’s relevant. They get the local economy, the trends, and most importantly, they get you.
• Real Connections: We’re talking about genuine human interactions. No automated responses, no bots, just real people who understand your #GenZDreams and #GenZGoals.
• Quick Moves: In the digital age, who has the time to wait? These banks are agile, making fast decisions that align with your fast-paced #DigitalLife.
• Community Goals: They’re all about supporting local events, charities, and causes. Think of the potential collabs, sponsorships, and opportunities to give back.

While the big banks might seem all glitzy and glamorous with their global reach, community banks offer something more genuine. They provide a sense of belonging, understanding, and a commitment that’s hard to find elsewhere.

Custom Solutions for Your Unique Hustle 🛠️

In the influencer world, one size doesn’t fit all. You need solutions tailored to your unique needs, and community banks are stepping up:

• Tailored Financial Products: These banks are in tune with the influencer economy. They offer business accounts that understand your diverse income streams, from affiliate marketing to brand collaborations.
• Loans That Get You: Need to upgrade your tech? Want to launch your merch line? Community banks offer loan options that vibe with your projects.
• Investment Advice for the Future: With incomes that can be as unpredictable as the latest social media algorithm, you need solid investment advice. Community banks are here to guide you, ensuring your financial future is as bright as your online presence.

Local Collabs: Because Authenticity Matters 🤝

In the digital world, local still matters. And community banks are all about that local life:

• Local Events: From community fests to financial literacy workshops, these events are perfect for connecting IRL with your followers.
• Sponsorships: Think of the brand visibility! Whether it’s a local sports event or a charity drive, community banks are often on the lookout for influencers to partner with.
• Long-Term Partnerships: Beyond the one-off events, there’s potential for deeper collaborations. Maybe it’s a financial literacy series on IGTV or a podcast sponsorship; the possibilities are endless.

#FinanciallyWoke: Your Money, Your Future 💰

Being an influencer isn’t just about the likes and comments; it’s also about managing your earnings smartly:

• Tailored Workshops: Taxes, investments, savings – community banks offer workshops that demystify these topics, ensuring you’re financially savvy.
• The Power of Financial Literacy: Understanding your finances means you’re in control. It means better negotiations with brands, smarter investment decisions, and a secure financial future.

Digital Banking: Seamless and Personal 📱❤️

You’re Gen Z; you live online. And community banks get that:

• Digital Solutions: From user-friendly apps to online payment solutions, community banks are blending tradition with technology.
• Keeping It Personal: Even in the digital space, the human touch isn’t lost. Think virtual financial advisors or localized digital content that’s relevant to your life.

Trust and Authenticity in the Digital Age 🌟

In a world of filters, trust is everything. And that’s where community banks shine:

• Shared Values: These banks resonate with your values. They’re about community growth, ethical banking, and genuine connections.
• Building Authentic Partnerships: Collaborations need to feel real to resonate with your followers. And partnering with a community bank feels genuine, authentic, and real.

Making Waves Together 🌊🚀

Your influence is powerful, and your financial decisions should be too. Community banks offer you the tools, understanding, and genuine connection you need to make your mark. Explore, connect, and collaborate with your local community banks. Together, you can make waves in the digital world and beyond.

By Xav Harrigin

Generation Z, encompassing those born from the mid-1990s to the early 2010s, has emerged as a formidable presence in social media and marketing. Distinct from prior generations, Gen Z’s upbringing in a digital environment has fostered a unique affinity for online platforms and content creation. As noted by Influencer Marketing Hub, a Danish firm specializing in social media and influencer marketing research, Gen Z influencers are self-reliant, creative, and industrious, engaging in digital ventures from podcasts to YouTube channels. This engagement has catalyzed a $21.1B influencer industry, with Gen Z constituting over 30%. Operating across platforms like Twitch, Spotify, Instagram, and YouTube, they mirror multifaceted interests and concise attention spans. Economic uncertainty coupled with technological acumen has rendered Gen Z receptive to innovative opportunities, including influencer marketing, where authenticity and interconnectedness are paramount.

Community Financial Institutions: Pillars of Local Economies

Community Financial Institutions have historically been instrumental in bolstering local businesses and economies. These institutions prioritize personal relationships and community involvement, frequently delivering vital services to microbusinesses and individual entrepreneurs. With Gen Z influencers reshaping the digital domain, an unexplored opportunity arises for community banking providers to synchronize their values with this vibrant generation. This exploration delves into how community banking providers can leverage the Gen Z influencer market as a novel growth pathway, bridging traditional banking with the dynamic realm of social media influence.

Understanding Gen Z Influencers

Generation Z, characterized by racial diversity, social awareness, and digital nativity, has become proactive, independent thinkers, intent on forging a fairer future. As the Annie E. Casey Foundation highlights, significant events like the Great Recession and the COVID-19 pandemic have shaped their perspectives. Influencer Marketing Hub emphasizes their diverse content creation and authentic influencer marketing approach, making them attractive brand partners.

Community Banks and Microbusinesses

Community banks, integral to the U.S. financial landscape, employ over 700,000 individuals. Unlike expansive banks, community banks concentrate on local services, channeling loans to local entities. As Investopedia elucidates, this local focus enables small businesses and communities to flourish, with community banks accounting for 60% of personal loans in the U.S., and 81% of small business owners expressing satisfaction with their small-bank lender.

Strategies for Community Banks

Generation Z’s unique financial upbringing has shaped distinct needs and preferences. EVERFI, an education company, underscores their value for transparency, honesty, and integrity. Community banks can align with these values through social media engagement, personalized banking services, and local influencer collaboration. By understanding and catering to Gen Z’s unique characteristics, community banks can forge meaningful connections with a demographic wielding $140 billion in spending power.

Challenges and Considerations

Targeting Gen Z, particularly influencers, poses unique challenges. Authenticity, transparency, and ethical considerations are vital. Community banks must be mindful of these factors and align best practices with Gen Z’s values.

Banking on the Future: Bridging the Gap with Gen Z Influencers

In an evolving digital landscape, Gen Z influencers present an untapped opportunity for community banks. By recognizing this generation’s unique traits, values, and preferences, community banks can forge connections resonating with Gen Z’s emphasis on authenticity, community engagement, and social responsibility. The potential for collaboration, partnerships, and tailored financial services aligns with community banks’ mission to support local economies and cultivate personal relationships.

Engaging with Gen Z influencers, while challenging, promises rewarding outcomes. Ethical considerations, transparency, and a nuanced understanding of Gen Z’s culture are vital for trust and loyalty. Community banks embracing this opportunity can innovate, connect with a younger generation, and access a market worth billions.

As traditional banking and social media influence converge, community banks must explore this untapped market as a growth avenue. The synergy between community banks and Gen Z influencers offers a blend of traditional values and modern innovation. It’s time for community banks to seize this opportunity, align strategies with Gen Z’s needs, and pioneer the bridging of finance and digital influence. The future of community banking lies in embracing change, fostering collaboration, and connecting with the next generation of influencers