How is Banking Changing? Four Ways Driven by Covid and GenZ

By Jody Bell

A new report underscores just how different GenZ is from prior generations.

A whopping 63% of GenZ men and women want to personally drive innovation, according to Girls With Impact’s 2020 Report, What’s Inside the Minds of GenZ during COVID?.

But what about when it comes to banking and money? How is GenZ driving innovation – and causing banking leaders to do a re-think? And, what, as a result, will banking look like? 

In a conversation on The GenZ Project with Jennifer Openshaw, U.S. Bank leaders Kate Quinn,  Chief Administrative Officer, and Dominic Venturo, Chief Digital Officer, shared four ways banking is changing and how GenZ will lead the way.

Named one of the most ethical companies in the world for the past five years, U.S. Bank has appeared on Fortune’s top 10 for corporate social responsibility and was listed in the top 50 most diverse companies by Diversity inc.

Here’s their take on the four ways banking is changing – and how GenZ fits in.

  1. More Innovative Working Environments

Despite the struggle to switch to remote work, corporate America seemed to have come out stronger and more innovative.

As Quinn puts it, “COVID has accelerated the workforce changes more than almost any other area in our lives.”

And GenZ prefers it – with flexible hours and remote work ranking first and second among preferred options in their future employer, according to the report. 

We are learning that teams can be innovative and productive in unique environments – learning how to work efficiently with new structures and dynamics.

This doesn’t necessarily mean that a 100% remote work world is the future, though.

“It’s still really important for people to be with people,” adds Quinn.

Humans need human interaction; COVID-19 has simply shown us that remote work can be extremely efficient as well.  

Quinn predicts the future of the workforce to adopt a hybrid approach – blending the convenience of remote work when necessary but maintaining in-person-collaboration within teams.

  2. Mobile Replacing Physical Interactions

 In short, “We’re moving rapidly towards GenZ,” says Venturo.

The key difference with GenZ is their acceptance of the simplicity of technology – the recognition that technology is a tool that makes our lives easier – not more complicated.

Now, as employees recognize the benefits of the technology they’ve switched to during remote work, older generations are adopting this mentality.

As Venturo puts it, “the overall way that we’re engaging, the way that we’re communicating, the way that we’re socializing, is changing. As a result, our desire is to be able to do more things through these digital tools…So we’re seeing the migration of transactions.”

In terms of how this relates to banking specifically, depositing a check, paying bills, signing legal documents, or other physical banking activities are all occurring digitally. Our phone is now adopting more and more of the transactions that previously required physical interactions.

  3. The Advancement of Digital Assistants

Previously, digital assistants remained limited – completing one task within one field.  

But, as human interactions have dwindled, there has been more pressure to increase the capabilities of these tools. 

Venturo says, “We’re seeing digital assistants that can cross environments” –  meaning, that they are becoming more and more human-like.  

At U.S. Bank, for example, digital assistants understand users’ accounts and the relationship between these accounts.  Ask the assistant what the balance is in your checking account, and then follow that question up with “what’s my monthly spending?” and the assistant will recognize that you are referring to your checking account and direct you there. 

4. The Adoption of Ambient Banking

While the core of financial services is expected to remain the same, many everyday tasks are expected to fade away, thanks to automation.

Core services such as money management, lending, and risk management aren’t expected to go anywhere, but the everyday tasks within banking and fintech may look quite different. 

Venturo believes we are heading towards ambient banking – where banking occurs in the background of consumers’ lives.

Imagine a future where you walk into a store, pick up an item you would like to purchase, and simply leave. Later, you automatically get charged for the item you picked up.

This might well be the very simplistic future of banking as we move towards an increasingly automated world. 

And in this Covid world, simplicity will certainly be welcomed.

To listen to the entire interview with U.S. Bank, go here.

Jody Bell, 19, is Girls With Impact’s Chief Editor and a program graduate. Girls With Impact is the nation’s only online, after-school, entrepreneurship program for teen girls, turning them into tomorrow’s business leaders and innovators.