Selling Gen Z on Fintech

Technology is becoming a more significant part of the world with each passing year and the newest generation of consumers is growing up with digital tools in hand. With this comes a great opportunity for selling Gen Z on fintech.

"Fintech" is a portmanteau of the term "financial technology." It refers to any digital tools financial institutions offer that make managing finances convenient. Since the COVID-19 pandemic, using fintech tools has become the preferred way consumers manage their finances.

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While fintech apps are helpful for everyone, generation Z is a prime market for digital finance tools. Generation Z refers to anyone born between 1997 and 2012. Unlike the previous generations, Gen Zers are digital natives -- they were born with access to digital tools such as computers and mobile devices.

That means these digital tools are more a part of Gen Zer's lives than any other generation. The fast pace of modern technology also means every generation after Gen Z will rely more on computer technology than the last. Therefore, marketing fintech tools to the new consumer generation is essential for any financial institution.

How to Market FinTech to Generation Z

Marketing fintech tools to Generation Z consumers can differ from marketing to older clients. Customers from older generations need a little more convincing to use fintech because they are less familiar with digital tools on average. Since Gen Z is a generation of digital natives, marketing strategies should focus more on what fintech apps do and their features.

Make Managing Money Easy and Convenient

Studies show Generation Z is easily the most frugal of any generation before it. While both millennials and Gen Z like saving money for a rainy day, Gen Z is far more cautious regarding finances. On average, they save $857 per month compared to millennials' $294 per month.

Part of this is likely because Gen Zers have more financial responsibilities on average. These include a higher cost of living and the need to spend more on debt than previous generations.

This means Gen Zers keep more money in the bank or another financial institution. Accessing and managing that money anytime and anywhere is very important to Generation Z consumers. To that end, Generation Z uses fintech tools for many of the same reasons everyone does -- they make managing their finances more accessible and convenient.

Rather than planning a bank trip and speaking to a representative, people can now manage their money from the comfort of their homes. This convenience is critical to the new generation, who rely on digital tools for many things because they can perform tasks quickly and easily. Apps that are not easy to use will leave a bad impression and consumers will soon turn to competitors for more accessible tools.

Foster Community and Diversity Values

While it might sound strange for a fintech app marketing strategy, it’s well-known that Generation Z is more connected to each other than any generation before. This makes them value community and diversity.

Social media apps like Twitter, YouTube and TikTok are some of the biggest platforms for online communities. Fintech apps can take this approach to marketing by offering consumers the opportunity to become part of a digital community of like-minded individuals.

Financial companies should also use social media as an advertising platform. Most social media companies offer advertising packages businesses can use to communicate with Gen Z consumers. Reaching many different demographics through digital advertising can significantly expand a fintech app's user base.

Keep Marketing Campaigns Easy to Understand

Advertising campaigns should be easy to understand and showcase the fine points of a fintech app. This is especially important for digital marketing when you're competing with many other companies for the consumer's attention.

Many social media platforms only allow ads to be a few seconds or a few minutes long, depending on which one the organization is using. In addition, the attention rate of Generation Z consumers is much lower than that of millennials. Studies show an ad will lose the attention of the average Gen Z customer after just 1.3 seconds. Therefore, the most essential thing in a digital marketing campaign is getting all the vital information out there as quickly as possible.

Make websites and ads easy to scroll through, with only three or four lines of text. Ads should be colorful and eye-catching to exemplify freedom of expression. Regarding video ads, videos under one minute should get to the point quickly. If the ad can be longer, they can also afford to be entertaining.

Generation Z Is the Future of Fintech

Gen Z and the generations that come after are more in tune with digital technology than ever. As the market for digital tools grows, fintech is poised to play an essential role in the next generation's lives. Standing out from the competition and appealing to Gen Z values in marketing campaigns will set fintech apps apart.

Photo Credit: Rawpixel.com/Shutterstock

Devin Partida writes about AI, apps and technology at ReHack.com, where she is Editor-in-Chief.