Gen Z is the largest generation in Indian history, with over 400 million people. They are also the most digital-savvy generation, with over 90% of them using smartphones. This makes them a prime target for the BFSI sector Gen Z India, which is looking to expand its reach and acquire new customers.
However, building products for Gen Z is not easy. They have different needs and expectations than previous generations. They are also more likely to switch providers if they are not happy with the service they are receiving.
This is where design thinking (DT) can help. DT is a human-centered approach to innovation that focuses on understanding the needs and wants of users. It is a non-linear, iterative process that can be used to develop new products or services or to improve existing ones.
DT can help the BFSI sector to build products that are tailored to the needs of Gen Z in India. By understanding their needs and expectations, the BFSI sector can develop products that are easy to use, convenient, and accessible.
Why to Use DT to Build Products for Gen Z in India:
1. Understand the needs and expectations of Gen Z
Design thinking is a valuable approach to understanding the unique needs of Generation Z. By empathizing and engaging with this digitally-savvy, socially conscious generation, design thinking helps create products and services that align with their desire for authenticity, sustainability, and technology integration. It offers an iterative process for adapting to their evolving values and aspirations, ensuring relevance in a rapidly changing world.
The first step is to understand the needs and expectations of Gen Z. This can be done through user research, such as surveys, interviews, and focus groups. It is important to understand their pain points, their frustrations, and their aspirations.
Once the needs and expectations of Gen Z are understood, the BFSI sector can start to think about how to develop products that meet those needs.
2. Tailor the user experience for Gen Z
Design thinking is a powerful approach for enhancing the user experience for Gen Z. This generation, known for its tech-savviness and digital fluency, places a high value on seamless, intuitive interactions. Design thinking’s user-centric methodology fosters empathy for Gen Z’s unique preferences and needs. By engaging Gen Z in the design process, designers can create products and services that align with their digital lifestyles and foster a deep emotional connection. Iterative problem-solving, prototyping, and user feedback cycles central to design thinking help refine solutions to ensure they are not only user-friendly but also resonant with Gen Z’s values and aspirations, ultimately delivering a more compelling and engaging user experience.
Gen Z is a digital-savvy generation. They expect products and services to be easy to use and convenient. The BFSI sector needs to focus on the user experience when developing products for Gen Z.
This means designing products that are intuitive and easy to navigate. It also means making sure that products are accessible on a variety of devices, including smartphones, tablets, and laptops.
3. Use technology that resonates with Gen Z
Design thinking is essential for enhancing the Gen Z user experience with technology. By focusing on user needs, preferences, and iterative design, it ensures that digital solutions are user-friendly and resonate with Gen Z’s values, creating meaningful and frustration-free interactions.
Technology can be used to enhance the user experience in a variety of ways. For example, the BFSI sector can use artificial intelligence (AI) to personalize the user experience. AI can be used to recommend products and services that are relevant to each individual customer.
The BFSI sector can also use technology to make products more convenient. For example, mobile banking apps can be used to allow customers to make transactions and manage their finances on the go.
4. Make products affordable for Gen Z
Design thinking can make products more affordable for Gen Z by tailoring designs to their needs, leveraging cost-effective materials and manufacturing methods, and incorporating sustainability. This user-centric approach fosters innovation and a strong connection between Gen Z and the products they use.
Gen Z is a cost-conscious generation. They are looking for products and services that are affordable. The BFSI sector needs to offer products that are priced competitively and that meet the needs of Gen Z customers.
Understand How DT Can Be Used in The BFSI Sector to Build Products for Gen Z
Here is an example of how design thinking can be used to build a banking app for Gen Z customers:
Empathize:
The first step would be to understand the needs, wants, and pain points of Gen Z customers. To achieve this, conduct surveys, interviews, and user research.
For example, you might find that Gen Z customers are looking for a banking app that is easy to use, offers personalized features, and is socially responsible. You might also find that they feel frustrated with traditional banking apps because traditional banking apps are too complex and don’t offer the features they need.
Define:
Once you have a good understanding of Gen Z customers, you can start to define the problem you want to solve. What are the biggest challenges that Gen Z customers face when it comes to banking and financial services?
In this case, the problem might be that Gen Z customers don’t have a banking app that meets their needs. They are looking for an app that is easy to use, offers personalized features, and is socially responsible.
Ideate:
This is where you brainstorm potential solutions to the problem you have defined. Come up with as many ideas as possible, no matter how crazy they seem.
For example, you might think about developing a banking app that uses gamification to make it more fun and engaging for Gen Z customers. You might also think about developing an app that allows Gen Z customers to invest in socially responsible businesses.
Prototype:
Once you have a few ideas, you need to start prototyping them. This means building rough drafts or mockups of your solutions so that you can test them with Gen Z customers.
For example, you might build a prototype of your banking app using a low-code development platform. This would allow you to quickly build a working prototype without having to invest in a lot of development resources.
Test:
The final step is to test your prototypes with Gen Z customers and get their feedback. This will help you to refine your solutions and make sure that they are meeting the needs of your target market.
You can test your prototypes with Gen Z customers by conducting usability tests, focus groups, and surveys. Once you have their feedback, you can make changes to your prototypes and test them again.
By following the design thinking process, you can build banking and financial products and services that meet the needs of Gen Z customers. Gen Z is the future of the BFSI sector, so it is important to invest in developing products and services that they will love.
Challenges in Building Products for Gen Z in India
The major challenges in building products for Gen Z in India include:
- Lack of understanding of Gen Z: Many businesses do not have a good understanding of the needs and expectations of Gen Z. This can make it difficult to develop products that meet their needs.
- Cultural differences: India is a diverse country with a variety of cultures. It is important to be aware of these cultural differences when developing products for Gen Z customers in India.
- Technology infrastructure: Not everyone in India has access to the latest technology. This can make it difficult to develop products that are accessible to all Gen Z customers in India.
How to Overcome the Challenges in Building Products for Gen Z in India – Some Hands-On Additional Tips
There are a number of ways to overcome the challenges of building products for Gen Z in India:
- Conduct user research: It is important to conduct user research to understand the needs and expectations of Gen Z customers in India. You can use this research to develop products that meet their needs.
- Partner with local businesses: Partnering with local businesses can help to ensure that products are culturally appropriate and accessible to all Gen Z customers in India.
- Use technology that is accessible to all: It is important to use technology that is accessible to all Gen Z customers in India. This may mean using older technologies or developing products that are mobile-friendly.
Conclusion
DT is a powerful tool that can help create products tailored to the needs of Gen Z in India. By understanding the needs and expectations of Gen Z, the BFSI sector can develop products that are easy to use, convenient, accessible, and affordable.
By using DT to build products for Gen Z in India, the BFSI sector can reap a number of benefits, including improved user experience, increased customer satisfaction, reduced customer churn, increased market share, and improved brand reputation.
If you are a business in the BFSI sector, I encourage you to consider using DT to build products for Gen Z in India. By understanding the needs and expectations of Gen Z by DT, you can develop products that are successful and that help you to achieve your business goals.
About the author
A Haryanvi by origin, an entrepreneur at heart, and a consultant by choice, that’s how Ajay likes to introduce himself! Ajay is the Founding Partner at Humane Design and Innovation Consulting (HDI). Before starting HDI, Ajay founded the Design Thinking and Innovation practice at KPMG India. His 16+ years of professional career spans various roles in product and service design, conducting strategy workshops, storytelling, and enabling an innovation culture. He has coached 50+ organizations and 2000+ professionals in institutionalizing design and innovation practices. He loves to blog and speak on topics related to Design Thinking, Innovation, Creativity, Storytelling, Customer Experience, and Entrepreneurship. Ajay is passionate about learning, writing poems, and visualizing future trends!
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