In recent years, banks and credit unions have faced a multitude of challenges related to digital disruption and new financial technology entrants. To combat these challenges, financial institutions have focused on increasing customer loyalty and deposit growth. The report offers insight into how both of those objectives can be achieved by tapping into the population of hands-on, well-educated parents who are hoping to instill healthy financial habits in their children.
“This report sheds light on the opportunity for financial institutions to partner with fintechs to deliver products and services that meet the needs of Generations Alpha and Z,” said
Emphasizing the unique needs of both parents and children when it comes to a youth banking solution, the report substantiates the opportunity that financial institutions have before them: banking on tomorrow.
“In the era of rapidly evolving technology, it is paramount that financial institutions understand the developing financial habits of the next generation,” said
Key Insights from the Report:
- Financial institutions have an opportunity to maximize on significant youth spending power. Approximately 80% of children ages 7-17 spend up to
$50 a week, and 10% of those children spend$100 or more each week – equating to$5200 of transactions yearly. - Financial institutions must pay attention to parents’ wants and needs when considering a solution. Burdened by student loans, the scarcity of affordable housing, and the stagnation of wages, the majority of parents (56.3%) identified the desire to arm their children with the financial savvy needed for a secure future, highlighting the demand for youth-focused banking solutions.
- Parents seek solutions from their current banking provider – and it could play a huge role in customer loyalty if financial institutions do not adapt. According to the report, a significant majority of parents (57.2%) express a preference for their existing banking provider when considering a youth banking solution. However, 75.1% of parents would consider switching to a different financial institution that offers a youth banking solution if theirs does not, spotlighting the direct link between such offerings and customer retention.
About Banking on Tomorrow: How Today’s Youth
To compile the report, REGO conducted an online survey in partnership with AYTM with 1,000
To view the report’s findings in full, download “Banking on Tomorrow: How Today’s Youth
About REGO
About Q2
Q2 is a leading provider of digital transformation solutions for financial services, serving banks, credit unions, alternative finance companies, and fintechs in the
About AYTM
AYTM is a fully-integrated agile consumer insights platform that lets organizations connect with verified audiences, run and analyze automated research tests, and tap into consumer voice earlier and more often.
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Contact
Rego Payments
pawan@regopayments.com
(267) 465-7530
Source:
2024 GlobeNewswire, Inc., source