Key for Generation Z Are Easy Conditions and Convenience

Generation Z young adults born after 1997 are increasingly represented in the labor market and making independent financial decisions. Their habits differ significantly from those of older generations in many areas of life, including a very different attitude to money than their parents or grandparents. It is an important responsibility for financial service providers to understand their preferences in the area of finance and to have up-to-date information on which platforms and topics they can address them and make them interested in taking advantage of financial services. In its latest survey of 18- to 29-year-olds, Provident Finance sought to find out what they expect from financial sector players or who they look to for help before making a financial decision.  

Generation Z is the first generation to have been born into the digital world, with smart devices and the internet at their fingertips as a fundamental part of their lives. So it's no surprise that in Provident Financial Ltd.'s latest research on the financial habits of 18-29 year olds, more than half of those surveyed said they most often access financial content on Facebook. TikTok, YouTube and Instagram are also relevant channels: young people access the vast majority of information in the digital space, especially on social media sites.

The research also looked at the level of interest in finance among the age group surveyed. While 37% of respondents do not feel the need to consume financial content specifically, 41% said that short video content is the most interesting when it comes to passing on information about money management. Longer technical articles, interactive calculators or even content shared by financial influencers are of negligible importance to respondents. Although the responses show that social media platforms are an indispensable source of information for this generation's financial education, nearly 84% of respondents said that they rely primarily on the advice of family and friends when making a specific financial decision.

Provident's survey also showed that when choosing a financial service provider, favorable terms and low costs are the most important criteria for young people: 68% of them cited this as a decisive criterion, while 18% of respondents said reliability and good customer service were the most important, 11% said digital accessibility and 24/7 service and 3% said the sustainability and social responsibility of the financial institution.

23% of respondents consider it very important for service providers to offer the possibility to conduct business exclusively through digital channels. 55% are more permissive: although it is important for them to be able to do business online, they have no problem going to the customer service in person if they need to. Only 9% of those surveyed said they preferred face-to-face to digital options.

Márta Pálfalvi, Director of Communications and Corporate Relations at Provident, highlighted that  "the results of our recent research show that young adults of Generation Z have a high expectation of a financial service provider to offer fast and convenient ways to manage their finances. Nor can a responsible financial institution ignore the fact that a significant part of their knowledge comes from the online space, which means that digital channels are essential if they want to be kept up to date with the latest financial information. The survey also asked what new digital service would be most attractive to young people at Provident: the mobile app for easy administration and fast loan tracking, as well as fully online loan approval and disbursement, came out on top with 34-34%, while 22% of respondents said that unique discounts and loyalty program for young customers would attract their attention.”

The research clearly shows that for young people, internet-based solutions are not just a convenience, but a fundamental requirement for their expectations of financial institutions. Financial market players who recognize this and continuously improve their online services, as well as focus on providing up-to-date and informative content in the digital space, will build strong long-term relationships with the next generation of customers.