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.
![Letter from the editor: Banks don’t have a Gen Z problem – they have a major issue with UX](https://tearsheet.co/wp-content/uploads/2024/03/Untitled-design-25.png)
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)