While younger consumers, like Gen Z, may not have significant assets today, Q2’s research highlights a massive wealth transfer on the horizon. An estimated $72 trillion in assets will be passed down to younger generations in the next 20 years.
This creates urgency for credit unions to establish strong relationships with younger customers now. Dominguez outlines three key strategies:
- Make banking as frictionless as possible: “Because you want them to be able to do business with you.”
- Offer small business banking capabilities: “Gen Zs and millennials as well have been not just large generations, but the most entrepreneurial. Offer them the things they need to be able to run what they need based on where they are at that moment.”
- Use data to personalize: “Use data, but use it in a way that makes it easy for the financial institution to personalize experiences and engage with them where it matters to them the most.”
By focusing on these areas, credit unions can position themselves to retain assets as they are passed down and grow relationships over time.
Jaime Dominguez, Principal Product Manager at Q2, in an interview for the Banking Transformed podcast.
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