A new report says 30 percent of Australians have in the last 12 months driven by the desire for better benefits.
A new report released from FIS, the financial technology provider, said Gen Zs and young millennials were leading the charge with l52 percent and 63 percent of them respectively starting new banking relationships compared to just 11 percent of boomers. Outside the need for more benefits, 29 percent of respondents surveyed said the other primary driver for entering a new banking relationship was ‘starting a new chapter in life’ with 25 percent wanting to access products or services their bank didn’t offer.
Not surprisingly, given lockdowns, digital transactions have accelerated with Australians shifting from in-branch transactions to online or mobile banking. This is likely to be a lasting shift, as only 7 percent of respondents indicate they are gradually returning to their “old ways” of banking.
Australians are also rapidly migrating towards digital payments – QR codes being the most popular. 36 percent have increased their usage of QR codes when shopping in-store, while 31 percent are using cash less often now. Additionally, access to real-time/faster payments ranked as the most pressing need across generations, FIS found.
Led by young millennials, the younger generations are also using mobile payment apps more often. Nearly 89 percent of young millennials own a mobile wallet, and amongst these 99 percent have used it in the past 30 days.
“Australian consumers have responded to the pandemic by seeking better banking experiences and are now prioritising digital,” the report said.
As competition in the banking sector intensifies – with new tech-savvy entrants winning market share and consumers quick to enter into new banking relationships – banks must offer a compelling customer experience from the get-go,” said Adrian Toynton, the FIS head of banking solutions.
“To retain and win new customers, banks must modernise their platforms and harness advanced technologies, including cloud and API-enabled banking, to provide a seamless, always-on experience. Banks should also keep a finger on the pulse of the habits and preferences of Gen Zs and young millennials, who are undoubtedly a crucial demographic that will determine what next-gen banking looks like moving forward.”
Additionally, the FIS report provided insights into the financial health and financial attitudes of Australians following the health crisis. The top personal financial goals amongst the younger generations suggested a desire to rein in spending and start saving in the aftermath of the pandemic.
Young millennials cite building an emergency fund (26 percent) as their top goal, following by setting a budget and sticking with it (24 percent). Saving for a house tops the list for Gen Z (31 percent), followed by building an emergency fund (27 percent).
One-quarter of Australians were found to have suffered a job setback in the past six months, with young millennials and Gen Zs being most vulnerable.
Around four in ten young millennials suffered a job setback, most often a pay cut (14 percent), temporary lay-off/furlough (11 percent), or deferred promotion (12 percent).
Around 36 percent of Gen Zs had a job setback and were more likely than other generations to experience a pay cut (22 percent) or a permanent job loss (11 percent).
Nearly two-thirds (65 percent) of young millennials said they wouldn’t be able to sustain themselves longer than a month after a pay cut. 58 percent of Gen Zs indicated the same.
On the other hand, 39 percent of boomers said they could financially survive more than one year.