By the numbers: Gen Z Banking Habits survey
54% of respondents said they want their financial institution to use gen AI
Digital Federal Credit Union is combining digital tools with in-branch resources to support the demands of its members, especially Gen Z.
When selecting a financial institution to bank with, Gen Z does consider technology offerings, according to Digital Federal Credit Union’s (DCU) Gen Z Banking Habits survey of 1,290 teens and adults conducted through Researchscape in March.
The survey found:
- 63% of respondents are budgeting and tracking their spending;
- 39% are planning for retirement through IRA investment; and
Courtesy/DCU
- 53% of respondents aged 23-28 use financial planners or advisers.
To support Gen Z clients, $12 billion credit union offers its DCU Goals Based Banking tool via its digital banking app, Sue Burton, SVP of member experience, told Bank Automation News. Additionally, DCU teamed up with debit card and money app Greenlight Financial Technology to help members boost their financial literacy.
“These tools are particularly helpful for the younger subset of Gen Z, who are getting their first jobs or debit cards, and are building their money management skills,” Burton said.
Gen Z wants Gen AI
Gen Z is also interested in leveraging generative AI as part of their FI experience, the survey found.
In fact, 54% of Gen Z respondents said they want their financial institution to use gen AI to improve online experiences, though they do recognize the importance of human oversight and interaction, according to the DCU survey, released June 24.
And in fact, other FIs, including Mastercard, are developing banking solutions catered toward a younger generation of clients. The card giant launched its agentic AI-drive Agent Pay tool in April designed to personalize financial experiences.
DCU is partnering with fintechs for gen AI implementation, Burton said, without specifying which ones. The tech is being used for:
- Fraud detection and prevention;
- Loan application processes; and
- Member communication personalization, specifically within the credit union’s chatbot.
“This digitally native generation is eager for the potential of AI while wisely seeking a blend of powerful technology and human support,” Burton said.
Register here for “Seamless integration: The new frontier in embedded payments,” a free Bank Automation News webinar set for Tuesday, July 22, at 11 a.m. ET.
