TREND 1 TREND 2 TREND 3 TREND 4 TREND 5 GEN Z RISING UX IS THE NEW GOLD MOBILE HIT ITS GROOVE REWARDS REVOLUTION THE NETWORK EFFECT TREND 1 GEN Z RISING One-third of Gen Z consumers want to share their payments on social media while only three percent of Baby Boomers would. TREND 6 TREND 7 TREND 8 TREND 9 TREND 10 FINTECH AND BANK FUSION AN ARMS RACE IN CODE PAYMENTS EVERYWHERE FRAUDSTERS INNOVATE TOO RIP AND REPLACE REQUIRED Meet Gen Z, the generation right behind the much-talked-about Millennials. The oldest among them are just teens and young adults today, but Gen Z consumers are the payments industry’s future customer base. This group is projected to 1 % make up 40 percent of all US consumers by 2020. It’s time to get to know them. While these future consumers share some traits with their older siblings, Gen Z 68 is very different from their parents and grandparents. Gen Z is naturally digital. of Gen Z consumers They have never lived without Google, Apple, Facebook and Amazon. They are interested in are mobile mavens. Eighty percent would give up television for a day—and an instant person-to- astonishing 28 percent would give up friends or money—to keep their mobile 2 person payments— phone. This “see now, buy now” generation craves immediacy. Devotees of more than any other Snapchat and Instagram, their average attention span is just a few seconds. age group. While they move fast, GenZers still demand personalized and highly-relevant experiences as consumers. Source: Accenture 2017 North While our survey reveals that online banking is the most frequently used banking America Consumer Payments channel among all consumers, GenZers gravitate to mobile banking apps. Sixty- Pulse Survey nine percent use them daily or weekly. Compare that to just 17 percent of Baby Boomers. This confirms a massive generation gap in accessing banking services that will continue to widen. Intrigued by digital tools that manage payments, bills, expenses and personal finance, GenZers want their mobile wallets to think for them. One example would be a wallet that automatically chooses the card that offers the best rewards or savings. Surprisingly, while Gen Zers are mobile first, they have not abandoned traditional channels. Our survey results show that Gen Z is actually more engaged than other consumers across all other channels, even call centers and branches. Not only is Gen Z nuanced in its banking preferences, it is upping the ante. As GenZers enter the workforce and their financial needs become more complex, they will radically reshape payments. They are likely to be the first generation to forgo the leather wallet for the digital wallet. Their desires will break down the walls between social media and payments in ways that have yet to be imagined. They will also force traditional players to elevate mobile payments value as a matter of survival. Trendsetters themselves, Gen Z will influence other consumers, upending what the industry thinks its knows about its customers. 4 | DRIVING THE FUTURE OF PAYMENTS 10 MEGA TRENDS Copyright © 2017 Accenture. All rights reserved.