The most recent Cornerstone Advisors report investigates how financial institutions may provide a family digital wallet experience for the next generation of banking consumers.
The release of “The Rise of Family Digital Wallets: Unlocking Opportunities for Banks and Credit Unions,” a brand-new research paper from Cornerstone Advisors, was announced today by Rego Payment Architectures, Inc.
“Family digital wallets” give kids a digital-first banking strategy with tools that let their parents keep an eye on and manage their conduct. The study investigates how family digital wallets can assist financial institutions in meeting the requirements of generations who are underserved in the banking industry.
The research estimates that there are around 53.4 million children in the United States between the ages of five and 17, or about 16% of the total population. Generation Z (born 1995–2009) and Generation Alpha (born after 2009) are included in this group, which receives more than $360 billion in allowances, “side hustles,” and part-time jobs.
Few financial institutions have created family digital wallets or child-focused banking apps on their own or in collaboration with outside businesses, the research notes, despite the chance to attract the next wave of financially engaged clients expanding. These options can give children a sense of financial independence and education while making it simple for parents to monitor and manage spending.
According to Tristan Green, director at Cornerstone Advisors and author of the research, “many banks and credit unions are finding it difficult to attract younger customers with their existing products, and this can have an impact on both their consumer and business relationships.” Financial institutions may build deeper relationships with these younger consumers using the practical strategies discussed in the research, positioning both parties for long-term success.
The research discusses system implementation, deployment, and compliance issues as well as several ways financial institutions can include digital wallets into their plans to build closer ties with younger clients.
Peter S. Pelullo, CEO of REGO, a white-label family digital wallet platform provider for financial institutions, said, “Banks and credit unions can not only tap into the $360 billion purchasing power of these younger generations but do so in a way that adheres to a tighter regulatory environment that lets parents stay in control.” Financial institutions have a special chance to give tech-savvy Gen Z and Gen Alpha customers a banking experience tailored to their demands.
Download the report and sign up for the forthcoming webinar on June 27, 2023, sponsored by American Banker, to hear more about the study and discover the prospects for financial institutions to target younger clients.
Source: Fintec Buzz