Letter from the editor: Banks don’t have a Gen Z problem – they have a major issue with UX
- As the largest generation in history, getting Gen Z right is an existential issue, particularly for plain-vanilla financial institutions.
- But shifting the goalposts can be an effective way forward for banks and other FIs as they build for the future.
For the past couple of years, we’ve been mapping traditional financial services’ journey with Gen Z (primarily in our Gens under the lens, Gen Z readiness and Gap Z reports).
It’s an important inquiry because as the largest generation in history, getting Gen Z right is an existential issue, particularly for plain-vanilla financial institutions.
Honestly, Gen Z doesn’t really want what banks have to offer. They’ve been primed by the dopamine hits from TikTok, personalized recommendations from Netflix, speed of Amazon, and usability of Apple. Gen Z is overwhelmingly meh when it comes to traditional financial services. They don’t like the big business aspect of banks that seem totally out-of-step on social issues that are important to this younger generation.
And so, Gen Z is generally prepared to forgo engaging directly with bank services in favor of neobanks or embedded finance offerings.
Gen Z just doesn’t vibe with banks.
So, what’s a bank to do? (it’s primarily why we’re running a cross-industry working group on building products that Gen Z loves)
