[Economic Essay Contest] The finance of the future

Karlina Lisbeth Castillo Jimenez

In today's economy, it is crucial for financial companies to balance maintaining the current customers they have and alluring new loyal customers. In order for them to attract consumers from the MZ Generation specifically, there are a few factors financial companies need to have into consideration.

First, it is important for any company to have employees that are able to relate to their customers. When a financial advisor is speaking to a potential client, they usually try to emphasize the countless benefits the service has. But all of this is futile if the employee is not prepared to highlight what a MZ Generation consumer might be particularly interested in. It has become a trend for MZ individuals to shop purposefully, if they do not see any greater use for a service, they will simply not get it. If financial companies were to hire MZ Generation individuals, the chances of obtaining and preserving those customers is higher. Furthermore, having MZ Generation employees will allow financial companies to understand from a business perspective what they lack and need for their business as these employees have firsthand experience on the market.

Another strategy financial companies can use is simplifying financial terms to their customers. As a MZ consumer myself, since I am not knowledgeable in financial terminology, I tend to not have a preference with what financial company I choose because at first glance they all look the same. What financial companies can do to separate themselves from the mass is try to educate their MZ consumers on what they are choosing. That way, the consumers will learn about their finances, have more interest in what the company has to offer, and will seek a company that cares enough to take the time to make sure their consumers understand their financial choices instead of taking advantage of their cluelessness. Making an effort to teach consumers about the importance of finances can result in them caring, and if they care, consumers will more purposefully make financial decisions.

In addition, financial companies can use social media to engage with their MZ Generation consumers. If financial companies were to use platforms such as TikTok, Snapchat or Instagram, they would have a larger following and a bigger space to educate consumers on what they offer in modern ways. What the three platforms have in common is an opportunity to showcase to their audience a short, concise, simple message that should be just as efficient as a one-on-one meeting with a financial advisor. Financial companies also have the opportunity to reach consumers around the world, which works to their favor if they have international locations. Or if they do not, they have an opportunity to collect data on what locations they can expand their facilities in.

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By using social media as well, financial companies can create charismatic content that will catch their consumer's attention, and keep engaging those that follow them. Companies can take this as an opportunity to do "day in the life" videos, for example, where they show what employees do during the day and what the company work environment is. Maybe they could even attract potential new employees. If people see what the financial company's staff does during the day, they might feel a connection to the people working there and be more encouraged to engage with them. Another benefit is that through their social media platforms, financial companies can also promote offers and sales they might have since not as many consumers have cable to watch ads. It is more common for households to have streaming services rather than cable, so this way financial companies can reach consumers wherever they are.

Data-driven subscriptions along with digitalization for personalized services

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

Luring MZ Generation into banking

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Financial institutions should embrace ESG Software and in-house ESG frameworks

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

Financial companies should also be able to keep up with the modern times. The pandemic has made companies realize that, even if not in person, they should still have a way of keeping business alive. Having an app that facilitates all the services consumers would have in person and on their website is optimal to the business. Going into the website itself through a phone device can be an inconvenience since usually the software that is used for a website is different for an app version. This can deter consumers from fully accessing the complete experience, limiting business for the company and it can also create a need for more customer service representatives since consumers will begin to get in contact with the company if they are unable to access their account information. To avoid all of it altogether, financial companies should be proactive and invest in their technology.

Finally, as newer generations emerge, companies should dedicate their time in investing resources to investigate newer generations' specific peculiarities to adequately engage with them. Learning about what interests their clientele gives companies insight on what attracts them, and to understand their clients uniquely.

Karlina Lisbeth Castillo Jimenez is a student at UNIBE.