Are You Evolving with Generations of Consumers?

Meeting the needs of customers requires financial providers to constantly evolve their offerings to address the shifting sands of the generational landscape. In an increasingly competitive landscape, it is no longer enough for financial providers to simply meet consumers where they are. Financial providers need to get there first — creating experiences that will deliver what consumers need, when they need them. 

By anticipating upcoming financial milestones for consumers, financial providers can develop competitive strategies to win new customers and keep them for the long haul. Experian's latest Generation Next report highlights key trends and milestones on the horizon for each generation:

Upcoming Generational Milestones 

Gen Z Reaches Independent Credit Eligibility

At 18 years old, U.S. consumers are eligible to apply for credit independently — and the majority of Gen Z will reach this milestone in the next 5 years. More than 21 million Americans will turn 18 in the next 5 years, presenting a tremendous opportunity for banks and credit providers to establish new relationships with these consumers. How can you win their business? Focus on strong mobile banking experiences, seamless digital account opening processes, and integrating with contactless payment options. 

Millennial Home Buyers

Home ownership is a huge financial milestone and many Millennials are rapidly approaching the average age of first-time homebuyers — 38 years old. In order to successfully navigate this milestone, first-time Millennial home buyers will seek out new financial products and services to help them build their credit. In fact, credit-building products remain most popular among Millennials. By offering personalized insights to guide them and products that help build their credit now, you can become a trusted financial provider that they turn to when it’s time to buy a home.

Gen X Readies for Retirement

While most of Gen X is still several years away from retirement, the first wave of Gen X will reach the average age of retirement in the next 5 years. And, even for those further away from retirement, it is certainly on their mind. MX research shows that the top financial goal in 2025 for Gen X is to save for retirement. However, at the same time, Experian’s report shows Gen X has the highest annual expenditures, spending more than $25,000 annually than their largely retired Baby Boomer counterparts. Financial providers have an opportunity to win Gen X customers by offering financial wellness tools and insights that can help them track their spending today and save for the future. 

Baby Boomers Require a Human Touch

Unsurprisingly, Baby Boomers are retiring at an earlier age and spend more on healthcare than their younger counterparts. More than half of this generation also still prefers brick and mortar bank branches to learn about new products and services — and places strong importance on human interactions when purchasing financial products (64% say it is extremely or very important). Financial institutions should consider these factors in how they approach targeted messaging and offers to support this generation, ensuring personalized insights and personal touches are at the forefront. 

Understanding Trends Doesn’t Replace Understanding Your Customers

With any trend reports like this, it is easy to make assumptions about what each generation will want and when they will want it. But, it is crucial to meet every assumption with data, otherwise your strategies will be designed for the customers you think you have rather than the ones you actually have. There is an important distinction between thinking you know your customer and actually knowing them. 

Everyone is different. Every generation is different. But, more importantly, managing money is a very personal thing. Every person, regardless of generation, will view things slightly differently. This is why putting the data consumers choose to share with financial providers into action is so critical. And, consumers expect it. In fact, our research shows:

• 55% agree they would give their financial provider access to more of their data if they knew it would result in a better experience. 
• 58% agree they expect their financial provider to leverage the data they have about them to personalize their experience.
• 65% agree they expect financial institutions to use the data they have about them to provide them with actionable and clear insights about their finances. 

Are you putting consumer-permissioned data to work for you and your customers? Join our upcoming Product Forum on April 29 to see how MX can help.