Young people in the UK, particularly Generation Z, are leaning towards physical banking. The preferences of the 18-24 age group have evolved as they value the convenience of digital tools but also the trust and personalisation that comes with in-person banking.
Their motivation for personal banking is the advice they receive from the bank and the feeling of involvement. This approach has led to bank branches becoming a hub for advice rather than a transaction center. The blend of physical and digital will bring life to bank branches in 2025.
The World Economic Forum offers advice on how to strengthen the new system:
However, to build lasting relationships with Gen Z, banks need to combine their physical presence with competitive and exciting digital offerings. Banks also need to deliver services that meet Gen Z’s demand for convenience, choice, value, sustainability and hyper-personalization. ~World Economic Forum
Modern banks customize services to suit customers' needs.
Modern branches are increasingly personalizing services. Most are turning into financial expertise centers. They offer technology-enabled consultations like video conferencing while also offering physical education workshops. These steps ensure that both requirements are met, while allowing a human element to guide you through difficult financial decisions like mortgages or wealth management.
Gen Z appreciates the digital world, but they also recognize that physical spaces are integral to fostering trust. The deep customer relationships that traditional banking creates are a huge motivator for the younger generation. Banks are also taking commendable steps to ensure that they offer relevant services to Gen Z. With this trend, physical banking is not going away anytime soon.
Is Gen Z's desire for physical banking a threat to cryptocurrencies?
Generation Z is drawn to physical banking for a variety of reasons, but the convenience of having a safe deposit box is a unique advantage. Plus, it’s easier to process documents while they’re physically there, which saves time. They also get a lot of free advice there.
The desire for physical banking does not negate their quest for cryptocurrency, which is digital money. A survey conducted in the United States claims that Generation Z embraces cryptocurrencies more than any other group.
Although the report says that more than 50% of Americans recognize that cash is king, different demographics have different attitudes. Digital wallets and contactless payments are hallmarks associated with younger generations, including Gen Z.