Abstract

     Communication sciences experts have categorized generations according to the phenomena of the virtual world and technology. Due to the advancement of technology, members of different generations have different values and behaviors. In this categorization, the Generation Z refers to a group of people who were born after 1995. This generation is almost simultaneous with the seventies and eighties solar decade of Iran. The Generation Z has been facing technologies such as the web, social networks and mobile phones ever since they were born. In fact, this generation does not remember the pre-internet era. That’s why this generation is sometimes referred to as digital citizens. Most members of the Generation Z will use digital communications and media for all their lives. Now it is estimated that about 40% of the world’s population is Generation Z. However, the proportion of the population of Generation Z in Iran is lower than that of other generations in comparison with the global population, but it is very important to consider the characteristics and interests of this generation as new customers of banks and financial institutions. Banks and financial institutions can create competitive benefits that guarantee their survival and durability by creating products and services commensurate with the values of this generation. In this article we briefly examine some of the characteristics of Generation Z in using the services of one of the Iran’s banks, and we’ll review the growth of this generation’s interest in using the bank’s online services over the last nine years.

Introduction

     The number and type of customer’s demands and purchasing power varies according to the technology, culture and economics changes. Nowadays one of the major challenges of the banks and financial institutions is to deal with people of different generations with different values and needs. This difference in needs and interests requires its own unique methods and principles for marketing and customer attracting. Communications sciences experts have categorized generations into different categories based on their confrontation with technology and virtual world phenomena. Depending on the possibilities and technologies available to each generation, the demands and values of each generation vary. The Generation Z that born in the second half of the 1990s, has no pre-internet and mobile experience. In fact, this generation has no experience of the pre-digitalization era. This generation not only uses smartphones easily, but also live with their phones. It is estimated that, this generation that is the future customer of banks and financial institutions, currently is about 40% of the world’s population [1]. The purchasing power of this generation is estimated at $3.4 trillion. It is also estimated that this generation’s purchasing power is $143 billion in the United States [1].

CONCLUSION

     As technology advances, banks are expanding their communication ports with customers, banks are increasing their communication ports with customers. Once, branches were the only way for customers to interact with banks, but nowadays bank customers use a variety of tools such as mobile phones, computers, ATM, POS, etc. to connect with the banks and perform financial transactions. The concept of banking is changing and the emergence of new generations that have grown up with digital tools will intensify this process. The new generations will do through numerous digital tools and current e-banking methods will not meet their needs. The process of digitizing banks has begun.

     This indicates that banks should improve their interactions with their customers by enhancing the digital literacy of their colleagues. Soon banking without a bank will be institutionalized in the country, and there will be no bank branches as there are today.