The finance revolution of the Young Generation. Trends and changes in banking

In recent years, we have been observing a dynamic evolution in the world of finance, especially in the context of the young generation. In this article, we decided to share our observations on the latest trends and changes in banking and how technology is revolutionizing the approach to finance.

Transformation of Finance: Changes in banking

The development of technology and changing consumer needs are shaping the financial sector in a way that seemed impossible to predict a decade ago!

According to Forrester Consulting analyses, the young generation (especially the so-called Generation Z) plays an increasingly important role in the global financial market, pushing the boundaries further and shaping the future of finance. Banks and financial institutions respond to changing customer habits and emerging new needs, moving from traditional customer service models to more modern and automated solutions.

On the one hand, they must maintain the traditional approach, focusing on relationships with existing customers, and on the other hand, they must meet the expectations of the young generation who prefer electronic solutions and quick decisions.

Over the past year, the role of technology in the banking revolution has become particularly visible. Fast service paths, video verification, electronic signatures and even artificial intelligence in the decision-making process have become standard. Banks are undergoing a transformation process, adapting to the growing expectations of customers.

Expectations of the Young Generation

Young Generation Z consumers are characterized by unique features that shape their behaviors, values ​​and expectations. Those born after 1995, usually still students or new employees, often have high incomes and are therefore very financially active. Generation Z is the first generation to grow up fully immersed in digital technology, and access to the Internet, smartphones and social media from an early age have become their natural tools of everyday use.

Although this age group is usually not interested in the traditional approach to banking and is very reluctant to use any type of local branch or branch, it is very keen on modern banking services. Young people have very high expectations, they expect extremely high availability of all kinds of online channels and maximum simplification of procedures and the so-called fast paths.

The young generation wants banks to enable them to use personalized products and services that are optimally optimized for their needs. Automation, quick responses to inquiries and 24/7 availability of advice are the key expectations of young customers.

mObywatel: Digital identity and the revolution in public services

Dynamic technological changes affect not only banks. The mObywatel application is a real revolution in the public services sector and in the way you manage your personal documents. This is not only convenient but also promotes digital awareness and security.

The young generation is increasingly willing to use the opportunities offered by mObywatel. The real revolution is the creation of the so-called digital identity. The application allows citizens to store digital versions of documents on their mobile phones, such as an ID card, driver’s license or student ID. Thanks to this, Users can confirm their identity or authorizations without traditional “plastic”, only its digitally secured equivalent in the phone is enough. Currently, this form of customer identification is also respected by banks and financial institutions in accordance with the changes introduced by the legislator on September 1, 2023.

Technology trends in banking for 2024

A fascinating year lies ahead of us, full of technological innovations in the banking sector. The development of biometric technology, data clouds, artificial intelligence and machine learning will be directions that will facilitate process automation, shorten customer service paths and increase system security.

Modern digital banking is moving towards the aggregation of services in one place while using advanced technologies to secure data and transaction processes.

Banks' challenges on the way to adaptation

Banks face many challenges: from adapting to new customer expectations to quickly introducing innovations. The need to maintain compliance with regulations while adapting to new technologies, and maintaining maximum security, is currently a major test for the banking sector.

“Agile” is becoming a keyword for both banks and technology solution providers. Adapting to the dynamically changing environment and keeping pace with customer expectations is a challenge that requires flexibility and quick response.

Financial security education

Currently, all kinds of social engineering threats are becoming more and more common, which is why security education is becoming extremely important. The young generation, although usually more aware of the threats, still requires constant education. Educational campaigns on platforms such as YouTube, Instagram or TikTok can effectively reach young users.

The Future of Banking: Summary of Major Trends for 2024

This year we can expect a further revolution in the banking sector towards comprehensive digital transformation. Our clients, together with us, will continue to adapt to the needs of the younger generation.

To sum up, online banking and modern technologies are the foundation of the future of the financial sector. Flexibility, speed of response to changes and data security are key elements that will allow banks and financial institutions to meet high market expectations and maintain an appropriate level of competitiveness.

Alicja Skowronek – Dzierwa

I have been associated with the IT world for over 12 years, participating in many projects on various issues, from warehouse logistics and shipping e-commerce orders through transport logistics with route planning using AI algorithms to finance and loans in the credit sector. The entire experience has one common denominator – the constant search for solutions. Privately, I am a lover of travelling and photography.

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