VIDEO TRANSCRIPT:

Gen Z, the generation that's been cutting cords since their cords were cut, has an estimated $360 billion in spending power. But they face a very uncertain financial future. With adulthoods kicked off by a pandemic and fueled by inflation, Zoomers' financial stress levels are high-key bad. So instead of spending, they're saving. No cap, nearly three-quarters of Gen Zers are routinely saving for emergency funds, paying off debts, down payments on homes, and just to save. It makes sense. Anxieties from very real problems are making them more risk-averse than generations before them. In a 2020 survey, half of Gen Zers reported that they, or someone in their household, lost their job or had to take a pay cut due to COVID-19. And in a survey just two years later, 26% indicated they weren't sure they'd be able to retire properly, 30% said they don't feel financially secure, and 43% had to take on a second job. But when it comes to choosing a place to keep the money they're saving, not all financial institutions pass the vibe check. Rather than choosing traditional banks, a lot of Gen Zers are opting to open accounts with neobanks, digital-first financial services without brick-and-mortar branches. Not only do neobanks provide better digital experiences than some of their more established counterparts, they are often publicly committed to social and environmental justice. Because Gen Zers want banks that care about the same things they care about. In fact, nearly 60% say they would switch to a bank that is more committed to environmental, social, and governance issues, as well as diversity, equity, and inclusion. While trends are still emerging, 50% of this new generation aren't even in banking mode yet. An untapped pool of potential banking customers. So for financial institutions to compete for their buy-in, they'll need to do a few things if they don't want to be seen as sus. First, they'll have to develop really smart, user-friendly, mobile-first banking applications. They'll also need to make commitments towards protecting the environment, improving diversity, and supporting other social causes. And they should offer tools, both for money management and financial literacy, that help alleviate the anxieties of a looming recession. Gen Z values trust and transparency. Banks need to focus on building that trust. What do you care about when it comes to banking? Let us know in the comments. Thank you for watching.