5 Biggest Banking Differences Between Millennials, Gen Z, Gen X and Boomers
Written by
Sarah Sharkey
Edited by
Amber Barkley
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Banking isn’t one-size-fits-all, especially when comparing the discrepancies of how different generations manage their money. Much like music and clothing choices, preferences vary widely between Gen Z, millennials, Gen X and baby boomers.
According to the latest American Bankers Association Preferred Banking Methods survey, each generation has unique habits when it comes to handling finances. Here are five of the biggest differences in how people bank by generation — and what they reveal about the future of money management.
1. Gen Zers and Millennials Overwhelmingly Prefer Mobile Options
Of millennials surveyed, 67% expressed a preference for mobile banking. With that, millennials have a slightly stronger preference than even Gen Z, of which 63% surveyed reported mobile banking as a preference.
Although mobile banking is most popular among the younger generations, over half of Gen Xers surveyed reported mobile banking as a preference. Even 38% of baby boomers preferred mobile banking, making it the second-most popular option among that age group.
2. Baby Boomers Appreciate Online Banking
Of baby boomers surveyed, 35% reported a preference for online banking, which made it the most popular option among this generation even it was a slight dip from a 41% preference the year prior.
Within the other three generations surveyed, each reported online banking as the second-most popular option of the bunch (behind mobile banking).
3. Many Baby Boomers Appreciate Physical Branches
Perhaps not surprisingly, boomers surveyed reported the highest preference for physical branches. Twelve percent of surveyed baby boomers preferred to conduct banking tasks at a physical branch.
In contrast, only 3% of Gen Z preferred physical branches, 7% of millennials and 10% of Gen X.
4. Some Gen Zers Still Appreciate Snail Mail
Surprisingly, 3% of Gen Z respondents claimed to appreciate physical mail as a way to conduct banking business. Although a low percentage, it’s three times more than the percentage reported by millennials, Gen Xers or baby boomers, with each generation reporting a 1% preference for snail mail.
5. Almost Everyone Avoids a Phone Call
In each generation, 7% or less of those surveyed preferred to bank over the phone, with baby boomers leading the charge, followed by Gen Z at 4%, and Gen X and millennials tying at 3%.
Final Take To GO: The Future of Banking Is up to You
The bottom line is that if you are in the market for a new banking experience, it’s helpful to get clear on how you like to bank before deciding on a new financial institution. Different banks excel at different methods of banking.
For example, some banks offer a robust network of physical branches to handle banking tasks. Other banks don’t offer any branches and focus on creating a top-tier online experience. Taking the time to decide what methods of banking matter to you most can help you find a bank that best suits your needs.
Although different generations may be more or less inclined to use online or mobile banking, an overwhelming majority appreciate the tech improvements their bank is making. In fact, 89% of those surveyed reported tech improvements are making it easier to access financial services.
Almost everyone has to tackle banking tasks. Overwhelmingly, survey respondents preferred to handle banking tasks via their financial institution’s mobile app or online. Physical mail services were the least popular option.
When finding a new bank, take the time to explore its service options. Seek out a bank offering the features you prefer like physical branches or a top-notch mobile app.
Caitlyn Moorhead contributed to the reporting for this article.
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