Luring MZ Generation into banking

Bastakoti Alok

The generation of young people born between 1981 to 2005 has witnessed unprecedented development in the field of technologies and digitalization of financial tools. The introduction of digital technologies in banking and financial markets has shifted from bank branches to digital banking, which can be a luring factor for young people because they are very techno-savvy and are talented in using modern-day technologies. The banks and financial companies must shift their strategies from traditional tools to digital applications to offer financial and banking services. Traditionally, customers go to banks and finance company premises and conduct their business, but now the new generation does not have time or does not wish to go to such places; they want to do everything through their palms, a tab, or cellular phones on their hand. So we have to cater to the wishes of this generation by introducing state-of-the-art technologies in the banking and financial sectors.

There have been significant developments in digitalization and technologies that are attracting the young generation to do business, and banking cannot remain isolated because whatever people of today do is with money; thus, banking and financial sectors have a pivotal role to play in strengthening the national and global economy. Moreover, the economy's lifeline, this sector must adopt easy and one-door policies to attract young people to the financial cluster and make the economy more mobile and vibrant.

We must admit that the bank and financial institutions are governed by the laws of their respective countries, along with the Central Bank's regulations and policies. Therefore, we have to request the authorities to formulate and implement policies that modern and young people want. But, saying so, we must also prevent money laundering and fraud that can happen and are taking place globally by introducing technologies that prevent and trace such activities. Therefore, we have to be careful that terrorist and unlawful money is injected into the banking system, which can harm societies and countries. The new generation should be guided and made aware of such unlawful activities in the banking and financial sector so that they comply with regulatory requirements.

The new generation is high-speed and wants the outcome instantly. The fintech tools to cater to their demand and needs must be developed using the latest banking and financial sector innovations. The process and procedures must be simplified and customer friendly so that users can efficiently conduct their businesses. Young people access all the information very fast, and financial institutions must provide every information through their social media sites, newspapers and websites. The people of this generation wish to have personal care and attention from their service providers, and for this, the banks or finance companies may be with them on their birthdays, national ceremonies and anniversaries so that they feel that we are critical to the banks and financial companies.

Banks and financial companies are service-oriented, and they succeed only when they can fully satisfy the customers, so customer-centric, customer-friendly and customer-benefiting strategies are the best tools to lure and retain customers to use their products and services. There must be a paradigm shift from what we are customarily serving the customers over the years since the inception of the banking sector. For this, there must be solid cooperation among nations to build newer and unified global regulations that dictate and guide the global economy. This is the age of information technology and digitalization, and these platforms must be used to smooth all the business and service banks and financial companies so that young people are attracted to use products and services that the institutions introduce to offer to the customers. The young generation longs for changes at a fast pace, and thus, financial service providers should introduce attractive new products that are catchy and more beneficial.

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2022-11-14 17:16 | People & Events

The Korean economy is fast changing and developing with the introduction of the latest technologies in all spheres of life and lifestyle, with pride in providing one of the most rapid internet services in the world. The young people thrive to use these great opportunities to be financially successful and internationally acclaimed. It is natural that this generation wishes to be rich at a fast pace like the tech giants who became more affluent during the COVID-19 pandemic despite the slowdown in other sectors. Thus, it is the need of the hour that banks and financial companies bring in products and services that add to people's wealth and simplify trade and finances both nationally and internationally. Industries and e-commerce activities are the lifelines of the economy, and the service providers must use tools that stimulate young entrepreneurs to use their services to grow and prosper together.

Banks and finance companies are not only the depositors and lenders of money; they must become the financial advisors, facilitators and friends in need of the customers so that the MZ Generation will be lured to use the bank's services and financial institutions for the long term. Once they are satisfied, they bring in other people, and they will act as ambassadors for the companies. "Serve, satisfy, and stimulate" must be the mantra to attract these new and aspiring people to the financial sector.

Bastakoti Alok is a student at Hanyang University.