Technology as the hero and the anti-hero in the quest of building products for Gen Z

We often think of technology as a driver for innovation in the financial industry. The word “technology” is in some ways synonymous with new and better. But not all technology pushes the envelope further for FIs.

For one, there is the issue of legacy tech, which can be relied upon to be secure but is not necessarily geared toward flexibility or speed. For another, there is the issue of a mismatch between the context and the tool: While Gen Z may want splashy new user interface features, their older counterparts may not be interested in these additions. And it is the latter group that is making FIs money right now.

So, how are industry leaders navigating the technological landscape to meet the demands of their customers?

To find out, we looked at the cross-section of the industry to see how different FIs are navigating the question of technology in different areas such as retail, SMBs, and payments.

You can’t please everyone

Gen Z’s affinity for gamification is well-known. And many firms ranging from banks like Truist to fintechs like Greenlight, Robinhood and Chime have incorporated it to make their interfaces more sticky. The problem is that banks (especially non-TBTF ones) have to balance building CX for both their primary consumer segment, Boomers, and their future consumers, Gen Z.

Given their love for gamification, Gen Z may want features that gamify or enable social-sharing of financial accomplishments. But older generations that aren’t as accustomed to these features may “consider their financial information very private and may be even taboo to discuss openly,” said Mikayla Smith, Lead Product Manager at Bangor Savings Bank.

So for incumbents, introducing any new feature is a balancing act. “We need to consider how making changes to our financial digital offerings that could improve the sentiment for a younger audience may impact and even lessen the  experience for other demographics,” she said.