10-Q, Member Exclusive

The changing tides in the Gen Z-traditional FI relationship

  • With the rise of new-age, youth-centric non-bank financial firms, traditional banks might find themselves at the end of the line in the eyes of Gen Z.
  • Some banks are now stepping out of their comfort zones to adapt and stay competitive with the largest generation, who are currently their customers and also the talent of tomorrow.
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The changing tides in the Gen Z-traditional FI relationship

    Legacy banks are stepping out of their comfort zones to co-exist with non-banks and win over Gen Z

    Lit, sick, gucci — how do traditional banks measure up in Gen Z lingo? Likely, they’re not even a contender among these words that scream cool and trendy. With the rise of new-age, youth-centric non-bank financial firms, traditional banks might find themselves at the end of the line.

    It’s not that banks are oblivious, but their longstanding focus on security, slow-moving steps, regulations, and compliance tends to saddle them with a serious and boring image in the eyes of Gen Z.

    Banks are now implementing tangible actions to adapt and stay competitive with the largest generation, who are currently their customers and also the talent of tomorrow. Growth begins where comfort ends — keeping this in mind, banks are overhauling their strategies related to employment, internal policies, and marketing. However, when it comes to products and services, some are opting for strategic partnerships. 

    We explore each of these areas to see how some banks are approaching things differently, and, in a few cases, even diverge from the norm and conventional routes.

    1. The most unusual fusion of traditional banks and TikTok


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