Houghton-based Student Village hosted its Banking on the Future webinar on 31 September discussing the evolving banking habits of ‘Generation wise’.
Student Village is an organisation that helps companies and youth understand, access, engage and develop with each other. The organisation believes that when true exchange happens between generations, the youth gain wisdom and experience and the elders gain insight and vitality.
According to Student Village, the way that youth view and engage with banks, insurance and telecommunication companies is evolving fast.
The organisation offered the following advice to youth:
One bank can’t satisfy my needs
Young people are no longer choosing to bank at the same banks as their parents. The 18–25 year old’s have a polygamous approach to banking. They like a variety of banks to fulfill specific needs. For example, a bank that offers good rates might be used for savings only while a bank with a user-friendly app might be used to pay utilities.
Cashless and creditless
‘Generation wise’ sees the hardships their parents faced paying bank loans so they are credit wary. Cash is also falling out of favour fast with younger consumers saying they can’t remember the last time they held a note. Last year, 64 per cent of youth did their spending online. Student Village predicts that online spending has increased significantly and crypto currency might well follow the same trend when youth find it both convenient and trustworthy.
Banks and telecommunications companies are adopting each other’s behaviour
When it comes to how youth view mobile, the key phrase is ‘options, not commitments’ and Student Village encourages companies to rethink the idea that cash-strapped students always go the cheap route. The organisation says the youth of today are willing to pay for value, for example research shows that ‘Vodacom is the Sandton of networks’ in the eyes of the youth because it offers the widest coverage at a slightly higher price.
Disruption in the insurance sector
Start-ups such as Pineapple and Naked Insurance appeal to the young demographic who favour device insurance while older youth focus on more traditional insurance such as life insurance and medical.
Twitter gets things done
Getting a quick response from a bank is as easy as tagging it on the social media platform, bypassing traditional means such as waiting on the phone or standing in line.
Details: www.studentvillage.co.za
