FITC, the innovation-led and technology-driven knowledge institution, has launched a first-of-its-kind Millennial and Gen Z Banking Survey Report.
The launch event themed “Tapping the Millennial & Gen-Z Markets: Redefining Opportunities for Financial Services Growth,” held on Friday, June 17, 2022, at the Lagos Oriental hotel, Victoria Island.
The publication aligns with FITC’s commitment to continuously provide cutting-edge knowledge solutions to the financial services sector and provides vital consumer data on a demographic that is fast becoming a significant consumer segment globally.
The publication was designed to provide crucial data on the Millennials and Gen Z market segment and support decision-making by key stakeholders within the financial services sector.
The launch event was well attended by all the major players and personalities in the Nigerian financial services sector. They include Mrs. Aishah Ahmad, Deputy Governor, Financial Systems Stability, Central Bank of Nigeria (CBN) and Chairman, FITC, Mr. Obaro Odeghe, Executive Director, First City Monument Bank (FCMB), Mrs. Funke Ladimeji, Executive Director, Coronation Merchant Bank, Dr. Temitope Fasoranti, Executive Director, Zenith Bank; Mr. Chuigo Ndubuisi, Executive Director, United Bank for Africa (UBA); Mrs. Emily Osuji, Executive Director, Nigeria Deposit Insurance Corporation(NDIC); and Mr. Adewale Aina, Head, Human Capital Services, Stanbic IBTC Bank amongst others.
Addressing the relevance of the report, the Managing Director/CEO, FITC, Chizor Malize, said the survey was conducted and published by the Insights and Policy Advocacy unit of the FITC.
She disclosed that the unit provides support to businesses through industry analysis, to enable them to strengthen their customer relationships and make better business decisions, driven by accurate data.
In addition to the Millennials and Gen-Z report, the Insights and Policy Advocacy unit consistently publishes reports that provide actionable insights to the financial services sector.
Malize described the publication as a vital tool for innovators and disruptors planning to design products and services for the Millennials and Gen Z demography.
Millennials and Gen Zs are set to become the most important customer group for most banks, neo banks and the financial technology (FinTech) companies. Combined, they currently form the largest adult generation globally with the largest economic impact. Their wealth more than doubled to over $9 trillion since the pandemic began. They are over two billion strong with spending power in excess of $1 trillion. However, “banks” have largely left cutting-edge research on millennial banking habits out of the design processes for product design and marketing strategies development. Financial institutions can no longer afford to neglect this huge group,” Malize said.
“FITC is committed to equipping and supporting the financial services sector and indeed, players and stakeholders across all sectors of the Nigerian economy with the requisite skills and knowledge to succeed. One of several ways by which we accomplish this, is through research-backed insights and accurate data, to aid sound decision making.”
Speaking further, Malize noted that the Millennials and Gen Zs are the most digitally savvy market segment within the financial services sector.
“They are quick to adopt new platforms and technology. With the advent of Fintech, in Nigeria, the competition for this market has become even tougher. Financial institutions must therefore respond proactively to the changes in the market with accurate data and guidance contained in this report.
”In order to earn the loyalty of Millennial and Gen Z customers, financial service brands must think outside the box. They must develop research-driven strategies for approaching Millennial and Gen Z customers, with a thorough understanding of who they are, what they want and how to make the customer journey as appealing to them as possible.
“To help capture and retain this demography, organizations require insights and deep knowledge as they develop the most innovative strategies for building long-term loyalty within the segment. We have therefore brought the industry, cutting-edge research and insights required for winning the minds and wallets of this important demography,” Malize said.
The MD/CEO, Wema Bank, Mr Ademola Adebise, delivered the keynote address. He was ably represented by the Chief Digital Officer, Mr. Segun Adeniyi. Adeniyi noted that of the interesting highlights in the report, is the discovery that millennials generally prefer digital platforms, while the Gen Z preference skews towards physical branches. According to him, this emphasizes the need for banks and financial institutions to create user-centered product experiences, tailored to the unique preferences of this market segment. Adeniyi attested that insights, driven by behavioural data such as this report, are necessary tools for designing new products, and improving existing ones within the financial services sector.
The Deputy Governor, Financial Systems Stability, Central Bank of Nigeria (CBN) and Chairman, FITC Board, Mrs. Aishah Ahmad, who unveiled the report, said the financial services sector needs it for effective decision-making on new product development.
“Recent changes in the business environment, and more particularly the banking industry across the globe, makes it imperative for periodic research to be conducted on emerging trends and developments. This provides data for better understanding of issues, as well as informed decision making for organizational success and business sustainability. The Millennials and Gen Z Survey Report is therefore very apt and highly commendable,” she stated.
“Beyond creating digital platforms, it is essential to design unique and specific models that ensure that this demography derives utmost value from their relationship with their banks. Accurate data from reports such as this one, are important tools for sound decision-making. I commend FITC for leading the charge in this regard.”
Ahmad emphasized the importance of funds security and data privacy. According to her, millennials in particular, care about the security of both their money and their personal data. “Earning customer trust depends on an institution’s ability to protect customers from fraud and, keep their personal data safe. Financial institutions, must more than anything else, safeguard their customers against fraud, and ensure that their personal data is protected.”
Speaking on banks-Fintechs competition, she stated that competition elevates the level of service delivery and strengthens the industry.
The panel discussion was moderated by Mr. Lookman Martins, Group Head Lagos 1 and West Commercial Banking Division, Access Bank Plc.
Other panel speakers were: Chisom Okoro, International Operations Officer, Providus Bank; Lanre Oladimeji, Group Head, Retail Banking, Zenith Bank; Chuma Ezirim, Group Executive, eBusiness & Retail Products, First Bank; and Jumoke Olusoga, Chief Strategy Officer, Page International Financial Services Limited.
Olusoga stated the need for financial institutions to go beyond simply providing digital platforms for their millennial and Gen-Z customers. “Today, every bank has a digital platform, so the differentiating factor from one bank to the next, must be in the customer experience. Financial institutions must focus on providing value and a frictionless customer experience to their customers. They need to take note of their specific needs and respond accordingly.” She said.
Highlighting the size and importance of the millennial and Gen Z market, Lanre Oladimeji noted that they are a key retail banking audience, based on their population size – nearly forty percent of the Nigerian population by some accounts. Stressing the need to serve them in the manner that they prefer. “You must meet the customer where they are. Millennials and Gen Zs are digital natives, so it is vital that banks engage them through their preferred platforms, ensuring a seamless customer experience” He shared.
Also speaking to the significance of the market segment, Ezirim emphasized the need to focus on its importance. “The Millennial and Gen Z market is large and significant, so any bank that fails to prioritise the needs of that market segment, does so at their own peril,” he said.
Speaking specifically to the needs of the Gen Z market, Okoro affirmed that they not only want to be able to transact on the go, but they also expect decent profit on their savings and investments. On the expectations that Gen Zs have of their financial institutions, Okoro noted their desire for financial education. “The Gen Zs are coming of age in a period of economic upheaval, so they also want financial education, to help them manage their money better”
In his remark, Dr. Temitope Fasoranti, Executive Director, Zenith Bank noted that with the quality of the FITC Millennial & Gen Z Banking Survey report, the financial services sector is set to gain immensely from the detailed insights it contained. “I am particularly impressed by the quality of this report as it will help the financial services sector look critically at its current ways and methods of serving this important target market. For instance, data obtained from the survey states that only 58.93 % of Millennials and Generation Zs were satisfied with the customer service of their banks’ employees, and 41.07% were left unsatisfied. This points to the need for seamless, dependable, and efficient frameworks, use of modern technology and improved customer service experience across all touchpoints in the banking sector” Fasoranti said.