Young people in the UK, especially Gen Zers, are bent towards physical banking. The preference of the 18 to 24-year-old age group has evolved as they appreciate the convenience of digital tools but value the trust and personalization that comes with in-person banking.
Their drive to in-person banking is the advice they get from the bank and a sense of engagement. The approach has made the bank branches a centre for advice rather than transaction spots. The blend of physical and digital, “Phygital” approach might bring back life to bank branches in 2025.
The World Economic Forum advises on how to cement the new order:
To build lasting relationships with Gen Zers, however, banks need to combine their physical presence with a competitive, exciting digital offering. Banks must also provide services that satisfy Gen Z’s demand for convenience, choice, value, sustainability, and hyper-personalization.
~World Economic Forum
Modern Banks are customizing services to fit clients’ needs
Modern branches customize services extensively. Most are transforming into financial experience hubs. They drive tech-enabled consultations like video conferencing while also offering physical education workshops. These steps ensure that both demands are met, with room for the human element to guide one in making difficult financial decisions like a mortgage or wealth management.
Gen Zers appreciate the digital world but also recognize that physical spaces are integral in fostering trust. The deeper customer relations emanating from brick-and-mortar banking are a great motivation for the young generation. Banks also take commendable steps to ensure they provide relevant services to Gen Zers. With the pattern, it is not easy to wish away physical banking any time soon.
Is Gen Zer’s physical banking desire a threat to crypto?
Gen Zers are drawn to physical banking for various reasons, but the convenience of accessing safety boxes is a unique one. Besides, it’s easier to process documents while present physically, which saves time. They also get a lot of free advice there.
The desire for physical banking does not negate their drive for cryptocurrency, which is digital money. A survey done in the US supports the claim that Gen Zers embrace crypto more than any other group.
Although the report says more than 50% of America’s population recognizes that cash is king, different demographics have different trends. Digital wallets and contactless payments are the hallmarks associated with young generations, including the Gen Zers.
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Source: https://www.cryptopolitan.com/uk-gen-zers-favour-brick-and-mortar-banking/