Accenture: The future of payments

199IT original compilation

According to new research from Accenture, Generation Z consumers are more likely to visit bank branches than any other age group, reflecting this age group’s greater reliance on cash.

On the other hand, the study also found that Generation Z consumers (18-21 years old) are also the most active and engaged group in using mobile banking, while consumers in other age groups prefer online banking.

Accenture surveyed 1,500 consumers in the United States and Canada to understand their banking and payment behaviors.

Overall, one in five consumers visit a bank branch at least once a week, and this figure is closer to one in four (23%) among Gen Z respondents, higher than any other age group. 16% of Baby Boomers visit a bank weekly.

Gen Z is also more likely to use cash when shopping in-store (28%), compared to just 18% of millennials.

For Generation Z who have just entered college, their first job is likely to be paid in cash, so bank branches have become indispensable. Although Generation Z consumers prefer to manage their money on mobile devices, they still need bank branches to convert cash into electronic form. Therefore, banks should use this as a basis to build a deeper relationship with Generation Z and provide financial guidance for their development. At the same time, banks should also recognize that this habit is obviously a long-term demand for cashless mobile payment services.

The survey also found that online banking is the most popular way for North American consumers to access banking services, with two-thirds of respondents using online banking at least once a week (65%). Generation Z is an exception, with more than two-thirds of consumers preferring to access banking services using mobile apps (69%).

Payment usage in North America has remained largely unchanged over the past three years, with the exception of growth in debit cards and mobile wallet applications.