Is financial services failing Gen Z?

From Jeanne: I really enjoyed this podcast. It gave me a few interesting things to reconsider.

For starters, the fact that when research is done to assess Gen Z’s financial literacy, it mainly measures more “old-school” financial knowledge (think interest rates, credit scores, loans, mortgages etc). It doesn’t necessarily test other things that have evolved as part of the financial landscape such as how Buy Now Pay Later works, peer-to-peer payment apps, evaluating a cryptocurrency investment, comparing subscription models, or understanding dynamic pricing - which arguably woudl be second nature to Gen Z! As they put it: “So basically we’re being graded on an old syllabus.”

I also really enjoyed the second part of the podcast, where the guests dive into how financial services should adapt/rethink their ways of operating and doing business in light of the changes that have occurred in the financial lives of this generation. Almost made me want to go and work for a big bank - they certainly have a lot of work to do to figure that one out!

And, just to name another example of something that made me pause, they mention how financial services often try to simplify information and processes as much as possible. But sometimes that very friction is actually a moment of comprehension… I mean look, I will admit I NEVER read T&Cs, and I am totally guilty of wanting to pick whaever is easiest!! BUT by making things completely seamless, are we also removing some of the moments that forced us to stop, think and understand what we are actually doing? What a great conversation starter! If you have any thoughts on this, you know what to do... Pop them in the comments below!

https://podcasts.apple.com/au/podcast/fintech-insider-podcast-by-11-fs/id1134439359?i=1000787582979

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Remember, you don’t need to be an expert to join the conversation. Questions, reactions and different perspectives are all welcome. Comment below👇🏻