Consumers are putting more importance than ever before on financial literacy, especially Gen Z.
As Gen Z takes up more space in the adult population, financial literacy could be a way to get early access to a loyal user base.
Dallas-based Vista Bank, which has 15 locations throughout Texas, participates in and donates to local events surrounding financial literacy. It also launched a campaign earlier this year where every Friday it shares a piece of financial advice on social media.
The bank also plans to leverage technology more when it reaches out to Gen Z.
“The thing that technology allows us to do is have a consistent message. It doesn’t matter whether they’re in Tel Aviv or Dallas, we can put a Gen Zer through the exact same training,” said John Steinmetz, CEO of Vista Bank. “And that’s one of the reasons our outreach and communications team is working around the clock to find better ways to ensure that we have a better future client, as well.”
Other financial service providers are choosing a different route to provide financial literacy tools to users.
Zogo is a Gen Z-run financial literacy platform that uses games and quizzes to teach users about financial concepts. Last month, the company announced it had partnered with 100 credit unions and banks to connect them with younger consumers. Zogo’s partners are able to integrate the platform into their mobile banking solutions.
“I realized that there was an opportunity to not only boost young adults’ personal finance acumen, but to also help financial institutions engage their fastest-growing customer segment in ways that resonate,” said Bolun Li, CEO and founder of the company. “Zogo’s gamified solution takes into account the learning style of younger generations, making it fun, easy and rewarding to learn about financial concepts.”
Focusing on improving financial literacy seems to be an effective way for financial service providers to appeal to Gen Z early on. The move could be a pretty strategic way for these companies to call dibs on a continuously expanding portion of the adult population.
“Gen Z are not the highest in net wealth yet, but if you connect with them earlier, and you build a rapport, you can have life customers that will supply your business for many years to come,” said Tallo’s Welch.
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