Even though its youngest members are still being born, Gen Alpha has the attention of financial institutions, card issuers and others in the payments space. These brands want to be prepared to attract these future consumers, and according to consumer data (revealed in studies like a 2023 survey from Razorfish), there’s a lot of work to do.
So, what do you need to do to get ready?
Let’s start with knowledge. Our team of financial services marketing experts put together a tip sheet (available below or click here to download now) to help you get to know Gen Alpha. It starts by avoiding one common mistake: conflating them with Gen Z. Here are some highlights that make this growing demographic unique:
- “These are the children of Millennials and Gen Z and are the most digitally native, purpose-driven generation so far” (SOURCE: Insider Intelligence).
- “By 2025, there will be more Gen Alphas than baby boomers. Many believe Gen Alpha will be the largest generation” (SOURCE: Insider Intelligence).
- “They’re expected to have an estimated $4 trillion in buying power by 2030” (SOURCE: Debutify).
- They are “tech-empowered, not dependent.” This means that even though they’re “more digital-forward… the novelty of a smartphone has worn off,” reports Insider Intelligence, citing the Razorfish data. “Nearly three-quarters (74%) of Gen Alphas prefer to do things like go outside, exercise or limit technology use to manage their mental health,” it says.
Some FIs, including Venmo, CashApp, Zelle, Chase and Capital One, are already building relationships with these young and future consumers via P2P apps, financial education and debit card products. But whether your FI has a ready-made product to sell Gen Alpha (and their parents) or not, you’ll want to understand — and prepare for — their expectations and interests.
This may require FIs to build new digital capabilities and adapt to new channels. For example, in thinking about marketing strategies to reach Gen Alpha, FIs should consider alignment with the following insights from the Razorfish report:
- “Having greater access to online platforms and devices has accelerated Gen Alpha’s brand maturity at a higher rate,” which may translate to “an elevated standard” (SOURCE: Digiday).
- “Over half (51%) of Gen Alphas first hear about brands through YouTube videos” (SOURCE: Insider Intelligence).
- “Future brand relationships will be formed through people – think influencers and content creators – rather than a particular brand’s representation” (SOURCE: Digiday).
- “Gen Alpha is drawn to authenticity, interactivity and gamification” (SOURCE: Insider Intelligence).
- “Alphas value sustainability, inclusion and being open to world views – and are outpacing Gen Zers across these values. Mental health is also a priority for Alphas, even at a young age” (SOURCE: Digiday).
Learn more below or click here to download the Gen Alpha insights as a PDF.