Generation Z

Once considered key drivers of the boom in ESG investing, millennial and Gen Z investors no longer seem so supportive now that the economy is experiencing more turbulence, a new study finds.

Younger customers want personalized engagement, including in their music playlists, experts said at American Banker's recent Digital Banking conference.

After being hard-hit financially by the pandemic and the surging inflation that followed, the generation entering adulthood is meshing their love of late-‘90s nostalgia — think cargo pants, bucket hats and disposable cameras — with a dose of old-fashioned frugality.

Research shows a third of younger consumers are ready to switch banks in the next year. Here are some of the features traditional institutions could offer to keep them in the fold or bring them on board.

The Arkansas bank built the mobile-first Coin Checking to suit Generation Z and young millennials. A phone-friendly app and simplified sign-up process are among its selling points.

Verizon Family Money is an app and prepaid debit card where children can spend under the limits set by their parents.

Many younger people are looking for financing and are averse to traditional credit cards, says Four's Chaim Lever.

Till Financial provides a banking app for kids and their parents that encourages them to broker money transfer agreements and save toward their goals. As users age, Till will earn revenue by guiding them to more adult financial products.

Queensborough National Bank and Trust in Georgia is one of several banks aiming to recruit tech-savvy interns through a network of universities and fintech companies.

The New York company is seeding savings accounts offered by the challenger bank Goalsetter as a way to help minority communities as well as use technology to start building long-term relationships with young consumers.

Some in the industry are beefing up online educational offerings and enlisting social media ambassadors on college campuses to help recruit younger consumers.

Younger consumers have an appetite for fintech services and digital relationships, says Cloudentity CEO Jasen Meece.

This oldest consumers in this next group are approaching their mid-20s, so financial institutions must tweak their marketing if they hope to reach them in an meaningful way.

The challenger bank aimed at Gen Z and counts singers, sports professionals, a social media personality and fintech executives among its investors.

The digital bank is on a larger mission to attract younger customers. It's inserting itself into the popular video game in the hope that game players will learn about its products and have fun at the same time.

Many credit unions offer youth accounts to help establish early banking relationships, but a new account for kids from the nation’s largest bank has raised the level of competition.

The industry can gain lifelong members in this demographic by validating their financial concerns as the economy struggles and offering guidance without judgment.

Bank of America and Clinton Savings Bank in Massachusetts are targeting consumers at a young age and hoping to keep them for life.