What’s driving the next generation of consumers?

Gen Z make up 32% of the global population and is set to be the most influential generation since the baby boomers. Unlike previous generations, they have grown up in a digital world, and this has shaped their expectations and behaviours. They expect seamless, personalised online experiences. They are also more inclined to support businesses and banks that align with their values. This shift presents both challenges and opportunities for banks. According to Tink research, engaging younger customers is one of the biggest concerns among banking executives. At the same time, 50% of financial institutions recognise that winning over Gen Z is critical for staying competitive. So, what is driving this new generation of customers and how can financial institutions adapt to their needs?

Economic uncertainty shapes consumer behaviour

The economic fallout from Covid and the rising cost of living has disproportionately affected Gen Z. This generation has significantly less buying power than previous generations, with wages not keeping pace with the rising cost of living. A recent report from Deloitte revealed that roughly 6 in 10 live pay cheque to pay cheque. While many report moving back home due to increasing rent and energy bills, and the prospect of home ownership seems impossible to most. This financial strain influences how this generation spends money and their life choices, with many taking on multiple jobs, cutting non-essential expenses, and seeking financial guidance to navigate these challenges. 

‍What this means for banks 

Gen Z are demanding more than traditional banking services—they are looking for proactive support in managing their finances. Banks that offer financial literacy tools and personalised savings and investment solutions, can help this generation to improve their financial wellbeing and build lasting, trusting relationships. 

Expecting seamless online experiences 

Growing up in the digital age, Gen Z have used the internet, social media, and mobile phones from a young age. They are tech-savvy and hyper-connected, and this constant connectivity has shaped the way they interact and their expectations. They demand seamless, mobile-first banking experiences and prioritise convenience, speed, and personalisation. In fact, research shows that 64% of Gen Z seek customised banking experiences, with nearly half willing to switch banks for a better user experience.

What this means for banks

To stay competitive, banks need to rethink traditional online banking and create hyper-personalised experiences. Banks that invest in tech—like predictive analytics for spending insights and AI-driven recommendations tailored to spending habits—can engage and build stronger relationships with Gen Z.  

Sustainability matters 

This generation has grown up in a world where climate change is a prominent issue in media, scientific research, political discussions, and on social media. As a result, Gen Z are much more concerned about climate change than previous generations. In fact, a recent Deloitte report states that 60% of Gen Zs say they feel anxious about climate change. The majority take action to minimise their impact on the environment, and 6  in 10 willing to pay more for sustainable products and services. This generation also expects banks to take action and support them on their sustainability journey too, in fact 70% state they want their banks to help them understand the environmental impact of their spending. And many express willingness to switch banks if their provider does not align with their values.

What this means for banks

To build trust and loyalty, banks need to integrate sustainability into their products and services, from offering green investment options to providing carbon insights to help customers understand the impact of their spending. This provides banks with an opportunity to engage customers on topics they really care about, helping to build trusting relationships. 

The path forward 

‍To successfully engage Gen Z, banks must do more than simply offer digital banking—they need to create experiences that are personalised, purpose-driven, and seamlessly integrated into their customers’ lives. This means delivering hyper-personalised insights to enhance financial decision making, providing education to help Gen Z manage money effectively, as well as embedding sustainability into financial products.

By aligning with Gen Z’s values and expectations, banks can build deeper relationships with this influential generation—ensuring long-term engagement and loyalty.

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