Generation Z is defying any established tools and strategies financial institutions have for consumer acquisition and retention. The oldest of Gen Zers are turning 25 this year, while the youngest remain in middle school. They’re coming into a wide range of financial needs—handling debit cards, managing student loans, and embarking on credit cards, auto loans, and even mortgages. They’re growing up on smartphones and pandemic restrictions, they’re adept at social media, and economic anxiety is running rampant. The old playbooks won’t work.

Instead, FIs that want to cultivate this consumer segment and build lasting relationships with consumers whose financial lives are on the rise must meet the particular psychological, social, and digital needs of this generation. Banks are looking at a finite—and rapidly closing—window of opportunity to fortify these relationships. As Gen Z’s spending power grows, primary FIs—many of which gained these customers when their parents signed them up for accounts—will have the best chance to pitch credit cards, auto loans, opportunities for early-stage investors, and more.

Key questions discussed in this report:

• How does Gen Z bank and what makes it different from young generations in the past?
• What factors cause Gen Z consumers to be so inclined to switch their primary FI?
• How can FIs acquire, retain, and build lasting relationships with Gen Zers?
   

Companies Mentioned: 

Bank of America, Capital One, Chase, Goldman Marcus, PNC, Wells Fargo, Zoom