Since the establishment of the first bank in 1472, the banking systems across the world have come a long way in terms of functioning roles and policies. Gone are the times of a limited number of banks, with a limited number of options and inconvenient ways. Especially in the twenty-first century, with the rapid rate of digitization and a subsequent pandemic that rocked the world, the banking systems have adapted themselves to serve the people with convenience and security.
Digital Banking: A Generational Choice?
The newfound convenience and security are proving to be the most popular and beneficial to the millennials and Gen Z. According to a recent survey regarding the changing trends, around 98% and 99% of the millennials and Gen Z respectively install at least one internet banking app and use it for banking. And who can blame them?
With the increased private sector role, foreign investment and the government’s liberal policies increasingly fell short of catering to the changing times. The collaboration of private initiatives such as Google Pay and crypto payment processing along with ventures of the government has given way to a more convenient and secure mode of payment that emerged in the form of digital payments. The growth in smartphones and the emergence of the contemporary virtual world have also been contributing factors to this shift in behavior. Easy credit availability, and easy monthly installments, all a click away, attract the millennials to shop more, spend more with the same purchasing capacity.
What Do The Stats Say About Digital Banking?
According to recent reports, 84% of the millennial generation feel that the digital way has a greater and smoother impact on management.
83% of people have accepted the traditional banking process as tiring and tedious and have shown a positive interest in the change. Above 57% of these people are increasingly and rapidly switching to e-banking services to perform even the basic day-to-day transactions.
In addition to the aforementioned factors, one has to take into account the applications that have come up for the assistance of young consumers. Financial budget making is no more a tedious task, thanks to the apps! The simplification of these financial processes has overpowered the traditional need for cash currencies, and the hassle in traditional bank processes.
Contrary to the expectations, digital banking has also pushed the young small businesses coming up, courtesy of its power of connecting people. In the absence of collaterals and extensive paperwork for every little detail, more and more people have come forward to use it to connect to the world. The budding entrepreneurs can not only keep a regular track of their transactions but also benefit from the feature of recurring payments offered in the mode.
In the times of Covid especially, where lockdowns and physical distancing had become the norm, it was the digital mode of banking on which the economy was thriving smoothly. One could easily link their accounts to their phones through the apps and their commodities delivered within a considerable stipulated time. In fact, Gen Z is directly responsible for the exponential growth in the booming of the e-banking sector, and rightfully so.
The banks too, in an attempt to bridge the gap between selves and the consumers, have recognized the mode as an imperative move. Cashless policies are being introduced in an increasing number of banks, owing to the demand they are encountering each day. Thanks to Gen Z, one can hope to go shopping in 2025 without anything but a phone, and of course the purchasing power in your account!