Generational shift in attitudes to cash
Another finding is that as countries advance technologically, there is a shift towards electronic payment methods and away from cash. The availability and use of ATMs and the proliferation of mobile payment options decrease the public reliance on cash. Is that something you also observed while analysing the cash behaviours of different generational groups, such as Gen Z?
Firstly, the impact of ATMs can be mixed. While they provide easier access to cash, they also facilitate more frequent, smaller withdrawals, which could maintain cash-usage levels.
Secondly, Gen Z does indeed show distinct values compared with previous generations. They are, of course, digital natives who are more comfortable with technology and often prioritise convenience and speed. Consequently, they show a stronger inclination towards digital payments and are less attached to cash. However, values like self-expression and environmental consciousness are prominent among them, which could influence their payment choices.
On the other hand, the value of self-determination is crucial for Gen Z, and cash supports this value by offering privacy and control over personal data. In times of crisis, the psychological security provided by cash might still hold relevance if they understand its importance. So, it’s crucial to educate Gen Z about the benefits and importance of cash to ensure that this new generation sees it as a practical and viable option.
How can this education be effectively put in place?
Show and tell! If younger generations no longer use or see their parents using cash, the concept will disappear for them. Gen Z might not consider cash an option if it’s not part of their everyday life. So, you have to meet them where they are.
From a marketing perspective, you could identify various target groups and address them differently. For example, one could run a different cash advertisement campaign on TikTok with arguments tailored to younger people compared with something like a traditional poster in a bank that extols the benefits of cash. You only have to look at trends like ‘cash-stuffing’ on TikTok to see how social media can be a powerful tool for making cash appealing to Gen Z.