Marqeta Survey: 9 Out of 10 of Gen Z Use Traditional Banking Options, but Many Have Their Eye on Big Tech. The report, Generation Z: Their payments are our future, indicated that, despite being highly tech-aware and ‘digitally savvy’, Gen Z still lean heavily toward traditional financial services options. Almost 9 out of 10 (87%) Zoomers say they currently bank with traditional providers, such as HSBC and NatWest. However, many are also interested in the prospect of banking with Big Tech, hinting at a future where Big Tech and financial services will become synonymous.
The report also found that Gen Z have very down-to-earth priorities and concerns. For instance, half of respondents (50%) report buying a property as the biggest life challenge they will face in the next 10 years, and one in five (22%) named it as a major financial priority. Interestingly, the areas of least concern for Gen Z are financial illiteracy (6%), access to credit (10%), and indebtedness (11%). This seems to demonstrate a financial awareness amongst Zoomers, who appear confident in their ability to handle their personal finances. At the same time, nearly two thirds (62%) of Gen Z say they have never used “Buy Now Pay Later” for purchases, and more than 10% of respondents did not know what it meant.
“Gen Z is better prepared than previous generations and has a more practical approach to personal finance,” says Ian Johnson, SVP, Managing Director, Europe, Marqeta. “Yet it is still important to educate Gen Z to help ensure broader financial inclusion and stability - whether by introducing them new to financial products that may benefit them, like “Buy Now Pay Later”, or through building targeted services that address Zoomers’ priorities, such as budgeting for putting down a deposit on a house. We believe the companies and financial providers that can meet these demands will be the ones rewarded with the spending power and loyalty of this trend-setting generation.”
Marqeta is the global modern card issuing platform empowering builders to bring the most innovative products to the world. Marqeta provides developers advanced infrastructure and tools for building highly configurable payment cards. With its open APIs, the Marqeta platform is used by leading European fintechs like Capital on Tap, Lydia and Twisto, who want to easily build tailored payment solutions to create best-in-class experiences and power new modes of money movement. Marqeta is headquartered in Oakland, California, is enabled in 36 countries globally and has offices in London, United Kingdom and Melbourne, Australia. For more information, visit www.marqeta.com, Twitter and LinkedIn.