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Every generation handles finances differently. The unique challenges and opportunities they live through will often define these tendencies.Gen Z, for example, approaches banking from a more technological mindset.
GOBankingRates spoke with Stoy Hall, certified financial planner and CEO of Black Mammoth, and Anne Marie Ferdinando, member outreach manager at Navy Federal Credit Union, to discuss what sets this younger generation apart in terms of their banking habits.
“While members of Gen Z are tech savvy and comfortable with the digital space, they are interested in people, balancing online resources with their desire for in-person interaction with experts in the financial field,” said Ferdinando.
“Due to this, and their understanding of the importance around saving and avoiding debt, I feel that Gen Z will enjoy a higher level of financial success,” she noted. “Having engaging life experiences and peace of mind are the top priorities for this group, and they are very aware of how money management will play an important part in their future.”
Read below for more expert insights on how Gen Z banks.
They’re Focused on Cybersecurity
First and foremost, Gen Z is all about “cyber everything,” said Hall.“Their obsession with cybersecurity and data protection is unparalleled.
“Growing up in a world of digital interconnectedness and constant cyber threats, they have developed an acute awareness of the importance of safeguarding their personal information,” he explained. “This generation expects nothing less than the highest standards in digital security from their financial institutions.”
Hall also noted that they’re not just passive consumers; they actively seek out banks that prioritize cybersecurity and offer robust digital protections.“They scrutinize privacy policies, security measures and data-handling practices before entrusting their money to any institution.”
He says this proactive stance reflects their desire for control and assurance in an era where data breaches and cyberattacks are common. On that same note, he says that they also have a demand for cutting-edge technology.
“Integrations with cutting-edge technology, from biometrics like fingerprint and facial recognition to AI-driven fraud detection systems, are non-negotiables for them. They expect banks to employ advanced algorithms that can detect unusual transactions and potential fraud in real-time, providing an additional layer of security.”
They Seek Out Personalized Services
“Personalized service tailored to their unique needs is a game-changer,” Hall said. “Gen Z demands a banking experience that feels personal and customized. Having grown up in an era of hyper-personalized marketing, they expect the same level of individual attention from their banks.”
Hall explained that value alignment is also big on Gen Z’s list of preferences.
“Gen Z is highly value-driven. They prefer to bank with institutions that reflect their ethical and social values, such as those committed to environmental sustainability or social justice causes. They are likely to choose banks that support green initiatives, fair trade and other social impact programs, reinforcing their personal values through their financial choices.”
Aside from this, Gen Z are also big on tech-savvy solutions.
“They appreciate digital tools and platforms that provide a seamless and intuitive user experience,” Hall added. “Mobile apps that offer personalized dashboards, spending insights and goal-setting features are particularly appealing to them. These tools help them track their financial health, set savings goals and receive tailored financial tips.”
Finally, Hall noted that this generation expects interactive and responsive customer service, whether through chatbots, social media or in-app messaging.
“They value quick, helpful responses and proactive communication from their banks. They appreciate real-time support options and prefer banks that leverage AI to provide immediate assistance and personalized interactions.”
They’re Into Cryptocurrency
Perhaps most surprisingly, according to Hall, is Gen Z’s embrace of cryptocurrency.
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“‘Crypto, crypto, crypto’ could very well be their mantra,” he said. “While older generations might still be skeptical about the stability and legitimacy of cryptocurrencies, Gen Z dives headfirst into this new financial frontier. They see crypto as not just an investment but as an integral part of their financial ecosystem.”
This isn’t just a passing trend, either. “For Gen Z, crypto represents the future of money. They are drawn to the decentralization, transparency and potential for innovation that cryptocurrencies promise,” Hall said.
He added, “They believe that digital currencies can democratize finance and reduce reliance on traditional financial systems, which they often perceive as outdated or restrictive.”
As early adopters of new technology, Hall says this younger generation is more willing to experiment with and adopt emerging financial instruments. “This open-mindedness sets them apart from older generations who may be more cautious and traditional in their investment approaches.”
Final Note
“In summary, if you think you know how Gen Z banks, think again,” said Hall.“Their approach to banking is defined by a relentless focus on cybersecurity, a demand for personalized service and an enthusiastic adoption of cryptocurrency. Banks that want to win over this generation must adapt and innovate, or risk being left behind.”
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