Question of the Day: What percent of Gen Z expect to bank with a tech company (e.g., Apple) rather than with a traditional bank?
Answer: 44%
Questions:
- Why do you think almost 50% of Gen Z would choose to bank with a technology company they’re familiar with rather than a brick and mortar bank?
- What do you predict will happen to traditional banks within the next 10 years? Explain your answer.
- Would you be comfortable banking with a company like Google or Amazon instead of a traditional bank? Why or why not?
Behind the Numbers (from U.S. News):
"However, young adults need to be aware that financial technology companies don't operate under the same regulations as banks and don't have the same consumer protections. For example, money held in savings, checking, money market or certificate of deposit accounts at most U.S. banks is insured by the Federal Deposit Insurance Corporation. That means each depositor can be reimbursed up to $250,000 should the bank fail. However, a balance held in a payment service app like PayPal or Vemno doesn't get that same protection."
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About the Authors
Danielle Bautista
Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!
Tim Ranzetta
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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