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Experts urge banks, others to adopt FITC Millennial and Gen Z survey report

by Goddie Ofose
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Financial experts have tasked banks and other financial institutions in Nigeria to adopt the Financial Institute Training Centre, (FITC) Millennial and Gen Z Survey Report as a guide for product development for the youth population in the country.

The call was made at the unveiling of the report at Oriental Hotel in Lagos recently.

Delivering paper titled “Tapping the Millennial and GenZ Markets: Redefining the Opportunities for Financial Services”, Mr. Segun Adeniyi, Chief Digital Officer, Wema Bank PLC, who represented Mr. Ademola Adebise, MD/CEO of Wema Bank, said that “Every financial institution will find the report very important in developing financial products and services for this demography.”

“Having had the opportunity to read the FITC Millennial and Gen-Z Report, the findings both excite and serve as validation of some of the key insights that have underpinned much of what we started and still do at ALAT”, Adeniyi stated.

The FITC Report is focused on the Millennials & Generation Z target audience living in Lagos and Abuja, with the aim of understanding their drivers of choice financial services providers, their perception of banks, their product offerings, as well as unraveling their habits & behaviors around banking and financial services.

Others who recommended the reports include Jumoke Olusoga, Chief Strategist Officer, Page International Financial Services, Chuma Ezirim, Group Executive, eBusiness & Retail Products, First Bank of Nigeria, Chisom Okoro, International Operations Officer, Providus Bank and Lanre Oladiimeji, Group Head, Retails Banking at Zenith Bank.

Ezirim, who was one of the panelists, stated that “Banks must begin to develop products and services that satisfy the yearning of this demographic. Things are changing very rapidly and their expectation is also changing. Any bank that does not see this demography as important as it business model would be playing catch up in short time.”

Adeniyi in his paper said some recommendations stand out and showcase opportunities for banks to create products and services that both satisfy and exceed the expectations of the target demographic Millennials & Gen. Z customers.

According to the survey respondents, only 58.93 % of Millennials and Generation Z’s were satisfied with the customer service of their banks’ employees, and 41.07% were left unsatisfied.

“This makes it abundantly clear that Deposit Money Banks need to do more to improve the customer service experience of their clients across all their touchpoints. We simply cannot gloss over the need for seamless, reliable, and efficient frameworks that blend modern technology, processes, and people to serve and support customers,” Adeniyi said.

On why banks must tailor user-centered product experience for millennials; according to the survey respondents, 83% of millennials stated that they would like to patronize the services of other FinTech companies. This is noteworthy when considering that most of the respondents reside in urban locations where there is no shortage of physical branches.

This highlights the confidence in banks’ digital platforms and would prefer easy-to-use digital solutions/products that solve specific use cases just like how the fintech companies operate. For this demographic, their model of trust isn’t necessarily tied to physical presence.

Interestingly, according to the survey, 53% of Generation Z’s opted for the services of traditional banks instead of digital banks. Suggesting that within both demographics, there is even more confidence in digital platforms among Millennials than Gen Z has more confidence in banks’ digital platforms than Generation Z’s.

Thirdly, reduction of bank charges and improved services is evident. The survey states that Millennials and Generation Z’s both requested for reduction in bank charges and interest rates on loans, excellent customer services, and improved ATM services.

Speaking on the survey, Chief Executive Officer of FITC, Chizor Malize said that the survey was necessitated by the rapid changes within the financial services sector, occasioned by the advent of fintech in Nigeria.

According to her, “With fintech steadily gaining ground within the Millennial and Gen Z markets over the last few years, it became apparent that we needed a clear understanding of these target group’s perception of traditional players with the financial services sector, We recognised the need to speak directly to the Millennial and Gen Z market, to gain a clear understanding of their perception of traditional financial services, as well as their expectations and needs.

At FITC, we pride ourselves on not only providing cutting edge knowledge solutions to our clients, but also on understanding the importance of fostering important conversations among key stakeholders, Malize said.

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