Adapt your business goals to ethnic + generational shifts.

Assess relevant new data to meet consumer changes

To adapt to consumer needs and preferences, you and your business must be aware of how the population is changing. There are two key demographic shifts to keep in mind: consumer diversity and generational trends. Consumers in the U.S. are becoming more ethnically diverse, and younger consumers have different financial behaviors and preferences than older generations. Both factors should play into how your business approaches and measures consumer diversity initiatives and how you plan for the future.

Here’s an important example. A 2022 BAI Survey revealed that more than 60% of Millennials and Gen Z consumers said they would switch financial institutions for a better mobile app or digital experience, as compared to only 22% of Boomers. Loyalty doesn’t appear to factor in for younger consumers, so you’ll have to up the ante to attract and keep Millennials and Gen Zers.

What do these pivotal changes mean for your institution? You must begin accessing relevant diversity and generational lending data to inform your goals going forward.