The economy may seem unpredictable, but how banks respond to its challenges and opportunities doesn’t have to be. Strategy Director Zachary Carpenter and Account Director Tripp Durant break down three of banking’s most impactful trends for 2023.
Trend 1: Social infotainment holds the key for Gen Z
Gen Z customers are valuable for banks — they’re low-cost, high-upside customers. But they pose a challenge: Some are now adults, graduating college, while others are still in their adolescence. How can banks capture older Gen Z without alienating future customers? The answer lies in “infotainment.”
In 2023, infotainment influencers providing financial advice via platforms like TikTok will be a key strategy in capturing this audience. Regardless of a split demographic, most Gen Zs are heavy social users. But they’re reportedly spending less time online, so banks need to be smart with their content strategy. The commonality among both sides of the Gen Z split? A preference for infotainment. Gen Z customers are drawn to digital infotainment as an avenue to get financial advice from influencers they trust.
Trend 2: Privacy moves center stage as finances become interconnected
Customers are starting to expect more from companies — particularly those with access to their information. In 2023, we’ll find an increase in privacy messaging, often accompanying or augmenting existing security messaging banks have relied on since their inception. Much like environmental, social and governance (ESG) dashboards that became popular in the early 2010s, we’ll likely see banks offer greater visibility for the customer when it comes to knowing exactly who has access to their data and how it’s being used. Let’s call it security-augmented privacy.
Trend 3: Segment-specific banks begin to emerge
Banks will be looking to capture a younger audience by adjusting traditional positioning toward a more modern relationship-oriented approach. So expect new entrants in the banking space to cater to specific and typically underserved populations such as African American, Latino, LGBTQ+ and rural underbanked customers. This change will challenge traditional banking brands to rethink their product-oriented focus and instead consider how they intersect with customers’ financial lives.
Don’t leave it to luck.
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