New Research Highlights Gen Z’s Preference for BNPL, Need for Enhanced Digital Banking Features to Support Holiday Spending and Security Concerns

NEW YORK: Glassbox, the premier provider of AI-fueled customer intelligence solutions supporting 60% of U.S. banks, today unveiled research on consumer holiday spending trends, showing a surge in Buy-Now-Pay-Later (BNPL) use among Gen Z and highlighting opportunities for banks to enhance digital banking and security services to meet evolving consumer demands.

Holiday Spending and BNPL Trends

According to the Glassbox study, Gen Z is expected to increase holiday spending significantly this season, with Buy-Now-Pay-Later (BNPL) payment options playing a central role. Half of Gen Z respondents indicated they will rely on BNPL frequently, though the potential for accumulating debt underscores a need for banks to take proactive steps to help young consumers manage spending responsibly.

Customer Expectations and Bank Performance

The research also shows that nearly a third of Millennials (29%) and Gen Z (30%) feel their banks are not meeting their service expectations. Consumers are calling for advanced digital banking tools, including:

• Enhanced transaction monitoring to improve transparency
• Virtual credit cards to enable safer online shopping
• Holiday-specific budgeting tools to help manage seasonal spending

Security and Support Demands

The holiday season brings heightened concerns around security, with more than half of all consumers expressing caution regarding online banking. The research reveals that 55% of respondents want stronger mobile security features, while 45% are looking for real-time spending alerts and budgeting tools. Additionally, 21% of Gen Z expressed a desire for temporary spending limits to stay on track financially during the holidays.

"With the end of 2024 marked by election concerns, a condensed holiday season, economic uncertainty, and growing cybersecurity threats, consumers are facing unprecedented financial pressures," said Michelle Suzuki, Chief Marketing Officer at Glassbox. "This research highlights a clear need for banks to engage with customers empathetically and proactively provide enhanced digital support through the holiday season."

Joe Crawford, Global Head of Technology at Glassbox, added, "Banks are in a unique position to leverage the right technology to deliver more personalized, secure, and supportive banking experiences—an approach that can resonate deeply with younger generations and help retain their loyalty in the long run."

As Gen Z’s holiday shopping kicks off, Glassbox’s research signals an opportunity for banks to innovate their digital offerings, prioritizing security, personalized support, and advanced budgeting tools to better serve the needs of today’s consumers. Explore the full research findings at: Glassbox 2024 Holiday Shopping Trends.

Survey Methodology
Results are based on a survey conducted by Dynata on behalf of Glassbox in October 2024. The survey reached a representative sample of 1,000 U.S. consumers aged 21+.

About Glassbox
Glassbox is the premier provider of AI-fueled customer intelligence solutions, working with the world’s smartest digital brands to revolutionize the way companies engage and connect with their customers online. Purpose-built for the enterprise, Glassbox securely captures data across infinite digital interactions to understand the root causes behind customer behaviors, transforming data into decisions so brands can act in mere minutes. Customers across industries and geographies, including Marriott Hotels & Resorts, Quicken, Inc., Credit.com, Danone, L’Oreal, Nestle, Ace Hardware, Air Canada, and 60% of the largest U.S.-based banks, choose Glassbox to translate deep customer insights into enhanced digital experiences, leading to improved brand loyalty, conversions and revenue. Glassbox has been recognized for its industry prowess and strength of its solutions by G2, named a G2 Top Software Company and a leader in multiple categories based on high satisfaction scores from real customer reviews. To learn more about the brain behind the smartest digital brands, visit: www.glassbox.com.

Fonte: Business Wire