The strategy: Gen Zers’ astoundingly high expectations for financial success made it clear that each generation of banking customers has different financial aspirations. And as we enter 2025, banks should know which products can help each generation of banking customers achieve their financial New Year’s resolutions.
Gen Z: Gen Zers believe they need $587,800 to be financially successful, according to an Empower study—more than three times higher than any other generation. And their top financial priority is saving: They want to watch their banking and investment accounts climb.
They’re already avid savers, but they use old-fashioned tactics like “cash stuffing” to get the job done, reducing temptations to spend.
This generation would benefit from financial institutions’ (FIs) automated savings tools and products that reward savings with compounding benefits—such as U.S. Bank’s Smartly Savings. Customers who use this product get over 4% cash back for maintaining a certain savings balance.
Millennials: According to CFP Board Research, millennials’ top life and financial goal is achieving “financial stability and independence.” And while both Gen Zers and millennials often suffer from “money dysmorphia,” it seems to affect them differently.
While Gen Zers are savings fiends, millennials want to:
Savings products that let millennials save for specific goals, or “buckets” could resonate well with this group, along with mortgage products with promotions for first-time homebuyers.
Gen Xers: On top of the financial pressures from having salaries they deem too low, many Gen Xers are responsible for both their children’s and parents’ wellbeing.
Gen Xers could use budgeting tools that help them watch their cash flows and set money aside for the future. They might also benefit from personalized advice on how they can save more aggressively for their retirement.
Baby boomers: As they near or enter retirement, 37% of baby boomers say they regret not saving enough to enjoy their next phase of life, per Bankrate. They wish they could have started saving more, earlier—and many haven’t fully recovered from the 2008 recession.
But equally concerning is that 51% of baby boomers don’t know much they need to have saved for retirement, per data solutions firm VettaFi’s research. And 59% of baby boomers haven’t considered the costs of long-term care, which can be extremely expensive.
That’s why baby boomers could use a 1:1 meeting with their FI’s financial advisors to plan for their futures. And since baby boomers value in-person banking services more than younger generations, sending them an invitation for a meeting at the branch could be well-received.
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