While Stake’s CMO argued the Boomer vs Gen Z divide is greatly exaggerated, ING’s head of consumer and marketing insights, Matt Bowen, said there is a clear “clash of the titans” and a huge financial disconnect between the two generations.
Speaking in conversation with Douglas Nicol, strategy partner at The Works, part of Capgemini, at last week’s Mumbrella Finance Marketing Summit, Bowen said the two-speed economy is a conversation that continues to arise.
Nicol and Bowen on stage at last week’s Summit
He explained that there is a segment within the Australian population that have money, deposits, are spending freely and are earning high interest on savings accounts, so life isn’t too stressful. Who might that segment be? Baby boomers, of course.
Meanwhile, younger generations, particularly Gen Z, haven’t yet established their careers, are on low, entry-level salaries, are trying to save, pay rent, and are struggling with the cost-of-living more so than their older peers.
“So we’re seeing this kind of clash of the titans, where the younger generation are really envious of their parents, because they have such a great lifestyle,” Bowen said.
“Quite often, Gen Z get a bad rap about frivolity with money, but actually they’re very aspirational.”
Gen Z still want to own their own home and are determined to save for that deposit, but according to Bowen, there’s a “harsh reality” that what was a 10-year journey, is now a 20-year journey.
“So the challenge for Gen Z is actually rewarding themselves along the way, because they’ll be thinking ‘that’s a bloody long time I’ve been saving for a house,'” he continued.
“And to further the problem, if they’re not saving, it’s probably because they’re renting. And rent, as we know, is through the roof at the moment, so it’s a constant battle.
Nicol and Bowen
“I don’t think aspiration has shifted a whole lot, what’s happened is the timeline for that aspiration has changed quite considerably instead,” Bowen continued.
He said brands in the financial sector need to have their finger on the pulse, have conversations with their audiences, and find ways to connect to the different segments as their relationship with money changes.
“It drives that authenticity, it drives credibility, and trust,” he said. “We need to build the trust people have in banks, my hypothesis is that less and less people will be scammed because we’ll be more open and communicative about those experiences. And it’s would be a shame to come to that, but banks don’t really hear about it until it’s too late.
“Banks and financial brands need to be getting out there, entertaining those conversations and engage with customers.”
