Answer to Question #260755 in Marketing for Hellen

Question

How can a bank help millennial and Gen Z consumers plan to start a family?

Answer 1

Discussion

As people begin to plan for families, it is important to start mapping out finances, both to have children and then to manage family finances thereafter. Banks act as financial intermediaries because they stand between savers and borrowers. Savers place deposits with banks, and then receive interest payments and withdraw money. Borrowers receive loans from banks and repay the loans with interest.

At some point, people need an outside source of capital to further growth. There are a variety of ways to raise capital. One of those methods is bank loans, which, in the right circumstances, can benefit people in the short and long-term.

Banks can give millennial and Gen Z consumers financial access which facilitates day-to-day living, and helps families plan for everything from long-term goals to unexpected emergencies. As account-holders, people are more likely to use other financial services, such as credit and insurance, to start and expand businesses, invest in education or health, manage risk, and weather financial shocks, which can improve the overall quality of their lives. Banks delivers personalized and just-in-time financial education programs to their consumers with a mobile-first financial education platform. They gain valuable insights into the interests of their consumers and offer personalized financial education that is relevant for their life stage and goals.

Generally, bank loans have the cheapest interest rates. The rates people pay will be cheaper than other types of high interest loans, such as venture capital. Bank loans offer significantly lower interest rates than credit cards or overdraft. Also banks will not provide a set of rules dictating how people should spend the money. Bank loans can provide people the flexibility to spend the money where they see fit.

Reference

Mondres, T. (2019). How Generation Z is changing financial services. American Bankers Association. ABA Banking Journal, 111(1), 24.