9 out of 10 MZ Generation Prefer Non-Face-to-Face Financial Transactions... Only 42% Visit Branches

Woori Financial Research Institute Publishes 'Analysis Report on MZ Generation's Financial Platform Usage Behavior'

[Asia Economy Reporter Yu Je-hoon] It has been revealed that 9 out of 10 MZ generation individuals (born between the 1980s and 2000s) actively use non-face-to-face channels for financial transactions. In contrast, only 4 out of 10 have used bank branches within the past three months, showing a clear contrast.

Woori Financial Management Research Institute announced on the 25th that it will publish the "Analysis Report on the Financial Platform Usage Behavior of the MZ Generation" containing these findings. To conduct this research, the institute commissioned Consumer Insight from October 27th and conducted a survey over one week targeting 2,000 men and women aged 19 to 40.

According to the survey, 86.8% of the MZ generation usually use non-face-to-face channels for financial transactions. Among the financial channels used in the past three months, mobile banking accounted for the highest proportion at 99.8%, followed by ATMs (68.2%) and internet banking (50.2%). The proportion of those who used bank branches within three months remained at 42.4%. According to a Financial Services Commission report, the elderly use bank branches at a rate of 75.1%, while their use of non-face-to-face channels remains at 24.9%, showing a clear contrast.

By bank type, the usage rates of applications were 95.5% for commercial banks, 75.7% for internet-only banks, 10.5% for other banks, and 6.2% for regional banks. The main apps used were commercial banks (65.7%), with internet-only banks also showing a significant market penetration rate (31.2%). When dividing the MZ generation, about 70% of the M generation mainly used commercial bank apps, whereas the Z generation used commercial banks (50.0%) and internet-only banks (47.2%) almost equally, showing generational differences.

In mobile simple payments, fintech apps (58.4%) were used more than card companies (39.8%). This also contrasts with the baby boomer generation, where the regular use rate of internet-only banks and fintech (including mobile simple payments) averages about 11.0%.

Among financial products invested in, after basic products like savings and deposits, direct investment methods such as stocks and virtual assets were preferred over funds (indirect investment). Specifically, savings/deposits and subscription savings (84.6%), stocks (direct investment) 63.5%, insurance (including pensions) 44.3%, virtual assets 30.8%, and funds (indirect investment) 28.4%.

However, there were also commonalities with other generations. When choosing financial apps, the MZ generation considered fee conditions (46.8%), interest rates and point (monetary) benefits (45.5%), app security and stability (23.0%), and simple procedures (14.3%) as the most important factors, which the institute explained is similar to Generation X and baby boomer generations.

Regarding core functions, the MZ generation’s usage rates of automatic transfers (95.1%) and inquiry/remittance (97.8%) nearly reached 100%, and their experience with savings and deposits was also high at 90.3%. When asked about services used in bank apps over the past month across all generations, inquiry and transfer/remittance usage rates (65?80%) ranked first, confirming similar trends.

The institute stated, "As the MZ generation conducts most of their economic activities within digital platforms, the future financial market is expected to be led by platforms that understand MZ customers well and receive excellent evaluations. To strengthen platform competitiveness, it is necessary to first focus on developing apps that best align with the intrinsic value of 'finance' and provide various game-like additional services and events that can attract the interest and enjoyment of the MZ generation."

This content was produced with the assistance of AI translation services.