Banking for Gen Z: What does Gen Z really want from their bank?

Much like older generations, the smartphone has become a key part of Gen Z’s life. But unlike older generations, Gen Z views their smartphone as the primary gateway to the world. As such, they expect every mobile experience to be seamless, intuitive and feature-rich - including banking.

The statistics speak volumes: a staggering 99% of Gen Z say they’ve used a mobile banking app in the last month, with nearly 50% preferring to manage their finances exclusively through their phones. But it’s not just about having an app to manage their money. Gen Z demands a fully mobile banking experience, with 60% preferring to open an account directly from their phones.

Banks must therefore offer a user-friendly, full-featured banking app to attract Gen Z customers. Failing to prioritise and develop their mobile offering could result in banks failing to capitalise on a generation that already boasts significant spending power.

Parents will be pleased to hear that Gen Z considers financial literacy to be important - an impressive 93% of Gen Z and Gen Alpha teens believe it’s key to achieving their life goals. Unfortunately, they score an average of 64% when taking the American National Financial Literacy Test (compared to 77% of older generations). The test requires a 70% score to pass.

Gen Z wants to succeed. Their scores show they need to succeed. So how can banks help?

Unlike older generations, Gen Z is turning to less conventional sources for financial guidance. Less than a third turn to their bank, yet 67% seek financial advice from social media channels - with TikTok (34%) and YouTube (33%) being most popular.

This presents both a challenge and an opportunity for banks. To gain Gen Z’s attention and deliver value, their aspirations must extend beyond in-branch education into the world of digital media. This could involve creating bite-sized video, hosting virtual workshops or adding interactive financial literacy tools to their banking apps.

Engagement is the key currency of digital media. Gamification, which uses game-like mechanics to boost engagement, is an effective way to encourage Gen Z to keep returning to a mobile banking app. Following dozens of interviews, prototypes and tests, we developed the Kids Banking App. This white-label solution, which includes a highly engaging financial literacy component, can be used by banks to deliver a cost-effective, easy-to-integrate digital banking solution that speaks to the needs of Gen Z children.

Having grown up in the digital information age, Gen Z are acutely aware of the many global challenges faced today. And they expect businesses, including banks, to be part of the solution.

While Gen Z may be digital-first, they’re not completely tied to their digital devices. Instead of abandoning traditional banking channels, Gen Z wants to experience a seamless integration of digital and in-person services. In fact, 45% of Gen Z say they wouldn’t open a primary account with a bank that didn’t have branches.

In more positive news, 46% of Gen Z say they’d be more willing to visit a branch if they offered advisory services. So while banks should continue developing their digital offering, this shouldn’t be done in isolation. Gen Z wants integrated services where they can effortlessly transition between digital and in-person interactions - for example, they might start a loan application online and complete it in-branch with an advisor, or they may schedule an in-branch financial planning session through a mobile app.

To make it simple for banks to offer this holistic customer experience, we have got you covered with Omnium. This multi-channel financial advisory product can be used to complement a wide range of financial services, including savings, investments, pensions and more.