Generation Z: Halfway to Adulthood and Ready to Borrow

Approximately half of Generation Z—those born since 1997—has graduated into adulthood, and that carries strong implications for financial institutions. Gen Zers are moving beyond foundational checking accounts into more complicated financial lives, putting the onus on FIs to nurture relationships that attract and hold young consumers who diverge from their elders in significant ways when it comes to learning about, seeking, and securing loans.

Gen Z is fundamentally different from foregoing young generations. Its members have come of age amid economic upheaval, financial anxiety, and confusing products. They’ve had to scrounge for financial advice, leaning heavily on the word of mouth of family and friends. Gen Zers have also been raised with smartphones in their hands, and they set a high bar for digital interactions while still needing to be guided by in-person interactions they can trust. It all sets up a challenge for FIs to cater to Gen Z’s particular needs, and this Javelin Strategy & Research report digs into the factors that will determine success.

Key questions discussed in this report:

• With half of Generation Z having reached adulthood, what are the implications for financial institutions wishing to lend to this cohort?
• Why is Gen Z more likely to grade harshly on its loan-seeking experiences in digital channels?
• What defines the continuing need to engage Gen Z consumers in physical banking channels as they seek and apply for loans?