Millennial and Gen Z Business Owners: 5 Priorities for Winning the Next Generation

Millennial and Generation Z business owners stand distinct from their older peers not just on the basis of age. Millennials and Gen Z grew up in a world where banking is digital-first, payments are electronic and always on, self-service is the default, and sharing financial accounts across multiple providers is the norm. These factors represent challenges and opportunities for financial institutions trying to calibrate their business banking programs to attract this ascendant group of business owners. 

Additionally, many young business owners have emerged from freelance work and side hustles, which often causes them to blur the lines between personal and business finances from the outset. As a result, younger owners are more accustomed to movement between platforms and tools, taking the best of consumer fintech apps, nonbank payment services, and traditional bank products to handle their financial chores. Banks have their work cut out in building user experiences that attract these business owners and fend off third parties that aim to take chunks of the primary banking relationship.

Key questions discussed in this report: 

• How do Millennial and Generation Z business owners differ from their older peers?
• What are the key differentiators for banks and credit unions to attract younger business owners?
• What are the major challenges for financial institutions looking to make inroads with these business owners? 

Companies Mentioned: 

American Express, Bank of America, Bluevine, Capital One, Chase, Fiserv, PayPal, Q2, QuickBooks, Square, U.S. Bank, Wells Fargo