How to Build a Generation Z Bank?

Generation Z is redefining the way we think about banking. This is the first generation that grew up with smartphones and social media. As a result, they have unique expectations for financial services.

Nowadays, traditional banks face a challenge. How to attract this demanding target?

Gen Z isn’t just looking for a place to store their money. They’re seeking a banking partner that aligns with their lifestyle and personal goals.

Banks must embrace innovation, transparency, and customization to capture their loyalty. This article explores the strategies to build a bank that resonates with Generation Z.

What percent of Gen Z primarily use an online bank? A staggering 96% of Gen Z uses online banking services. This indicates a strong preference for digital solutions that offer convenience and efficiency.

They expect to manage all aspects of banking through mobile devices - from account opening, money transfers to bill payments.

Generation Z, expects banking to be intuitive, fast, and integrated into their mobile-centric lifestyles. They see digital banking as more than just a convenient tool. It is their primary method of managing finances. They prefer seamless mobile banking applications that deliver top UX and cutting-edge features.

To understand Gen Z's real expectations, we turned to Reddit to hear from them directly. We found many discussions where users shared what they like (and dislike) about banking apps.

Below, we’ll share some standout comments and explain what these insights mean for banks.

This shows that Gen Z appreciates apps that get straight to the point without unnecessary complexity. They want personalized experiences. Show spending insights or budget recommendations in a way that feels seamless and natural.

It’s important to note that personalization for Gen Z goes beyond just showing them their spending habits. It’s about delivering insights that are actionable and timely.

For example, instead of the generic “You spent $200 on dining last month,” the app could suggest: “Save $50 this month by cutting down on food deliveries”. This generation appreciates advice that feels relevant and immediately applicable. And they don’t just want insights—they want tools that help them act on those insights effortlessly.

Key Takeaways for Banks:

Gamify Financial Habits. Introduce savings challenges, badges for financial milestones, or rewards for reaching goals. Go even further - make it about behavior change, not just fun.
Prioritize UX/UI Simplicity. Focus on intuitive design, reduce steps in key processes, and ensure the app is fast and responsive. Pay attention to micro-moments that create a seamless user journey.
Provide Personalized Insights. Gen Z expects personalized financial advice that is easy to understand and act on. For example categorized spending reports or tailored recommendations. Ensure those insights are actionable and delivered when they matter most.

In our previous article we explored “Gen Z Banking Expectations in 2025” in details.

Gen Z values personalization that goes beyond surface-level interactions. It’s not enough for a banking app to simply greet users by their first name or display their recent transactions.

Instead, they expect personalized insights that improve their financial well-being. Take an example tailored budget recommendations based on pending patterns or reminders to pay bills before due dates.

However, what makes personalization truly resonate with Gen Z is proactivity.

They want their banking apps to anticipate their needs before they even ask. If a user regularly pays rent on the 1st of the month, the app could send a reminder a few days in advance or even offer a one-tap option to schedule the payment.

If the app notices that a user often spends money on takeout, it could suggest a savings challenge like, “Try cooking at home this week and save $20 ”.

Another key aspect of personalization is flexibility. Gen Z doesn’t want rigid tools that force them to manage their money in one specific way. They appreciate apps that allow them to customize their experience. Allow them to set their own financial goals or adjust their budget categories to match their lifestyle. This flexibility empowers users to take control of their financial journeys.

Several features in modern banking apps already reflect the level of personalization that Gen Z expects. Spending insights is one of them. It breaks down a user’s spending into categories (food, transportation, or entertainment).

To stand out, banks need to take a step further and provide actionable advice based on those insights. Instead of just showing users that they’ve spent $200 on dining, the app could suggest ways to reduce that amount (or even recommend local deals and discounts).

Another feature that resonates with Gen Z is personalized financial goal setting. Apps that allow users to set specific savings goals. These features can include personalized prompts, such as reminders about progress toward goals or tips to help users save faster.

Push notifications also play a big role in personalization. But these notifications need to be smart and relevant, not spammy. A timely notification, like a reminder about an upcoming subscription or a tip to reduce recurring expenses, can feel helpful rather than intrusive.

Personalized rewards programs can attract Gen Z. Instead of generic cashback offers, banks could offer rewards based on a user’s spending habits or financial goals. For example, a user who often shops at eco stores could earn cashback on sustainable purchases.

To learn more read Loyalty App Development: What Do You Need To Know

Transparency for Gen Z goes beyond simply listing terms and conditions. They expect clear, straightforward communicatiion without financial jargon that could be confusings. Gen Z wants banks to be upfront about fees, interest rates, and any potential penalties. They want to know exactly what they’re signing up for, without any surprises during the process.

One key expectation is transparency in pricing. Hidden fees are a major turn-off for this generation. Many Gen Z users avoid traditional banks because of their reputation for charging unexpected fees.

To address this, banks should adopt fee structures that are simple and clearly explained. For example, instead of vague statements like “monthly maintenance fee may apply,” a bank could clearly state, “You’ll be charged $5 per month if your balance falls below $500 ”.

Another critical aspect of trust is how banks handle user data. Gen Z is well aware of data privacy issues, and they expect banks to be responsible stewards of their personal information.

They want to know exactly how their data is used and for what purposes. Banks that are transparent about their data practices can build a stronger relationship with Gen Z users.

Sustainability matters to Gen Z because they see it as directly tied to their future. This generation has grown up witnessing the effects of climate change and is aware of the environmental challenges ahead. They want to partner with institutions that are working to mitigate these risks and promote a more sustainable future.

Moreover, Gen Z sees their spending as a form of activism. They believe that where they put their money has the power to drive change. As we discussed in our article “How Banks Use Green Finance to Attract Gen Z and Millennials”, financial institutions that offer green products and contribute to sustainability efforts are more likely to win younger customers.

Gen Z wants to know that their money is being used for good and they will choose banks that align with these values.

One way banks can meet these expectations is by offering products and services that support sustainable lifestyles. For example, some banks provide carbon tracking tools that show users how their spending habits impact the environment. These features not only align with Gen Z’s values but also empower them to make more sustainable choices in their own lives.

To find more inspiring ideas read 8 Examples of Green Banking Initiatives That Stand Out

Gen Z expects banks to offer more than just traditional debit and credit card options. They want payment solutions that reflect the way they live their lives—digitally and on-demand.

This includes mobile payment options like Apple Pay, Google Pay, and Samsung Pay, as well as peer-to-peer payment platforms such as Venmo, PayPal, and Revolut.

Additionally, Gen Z values contactless payments for their convenience and speed.

According to recent data, contactless payments grew by over 30% in the past year, with younger generations driving this trend. Gen Z expects their payment experience to be quick and frictionless.

Digital subscriptions and in-app payments are also on the rise among Gen Z. This generation prefer to pay for Netflix, Spotify, or gaming platforms through recurring payments. Banks that offer seamless integration with subscription management tools can help Gen Z users better manage their finances and avoid unnecessary charges.

According to a 2023 study by PYMNTS, more than 70% of Gen Z consumers use digital wallets for everyday transactions. Mobile wallets like Apple Pay and Google Pay are the most popular, followed by peer-to-peer payment apps such as Cash App, Zelle, and Venmo.

This shift toward digital payments is driven by Gen Z’s preference for convenience and security.

Buy Now, Pay Later (BNPL) services have also gained massive popularity among Gen Z. Platforms like Klarna, Afterpay, and Affirm allow users to split their purchases into smaller, interest-free payments over time.

For Gen Z, BNPL services are appealing because they offer a way to manage expenses without relying on credit cards. This is particularly important for a generation that is wary of debt and traditional credit systems.

Many Gen Z individuals express a desire for guidance on savings and investment strategies. Banks can fill this gap by providing educational resources that help them navigate financial decisions.

Gen Z doesn’t want to be overwhelmed with lengthy documents explaining complex financial products. Instead, they seek bite-sized, easy-to-consume educational content that’s delivered through the platforms they already use.

For example mobile apps, social media, and even gamified experiences within banking apps. They want financial education to be part of their everyday interactions with their bank. But not something they have to looking for separately.

Moreover, Gen Z values transparency and trust in financial education. They want banks to be honest about the pros and cons of different financial products, not just push services for the sake of sales.

Gamification also plays a significant role in making financial education more engaging. Features like quizzes, challenges, and rewards for learning milestones motivate Gen Z to improve their financial literacy.

Generation Z expects banking to be as easy as swiping through their social feeds. They value convenience, personalization, and trust. Banks that offer only transactional services are losing relevance. Gen Z wants value-added experiences that improve their financial well-being.

To conclude, banking for Generation Z is about creating solutions they want to use - not only services they need. Whether it's gamified savings challenges, personalized spending insights, or seamless payment flows, the right technology partner makes all the difference.

Are you ready to build Gen Z-oriented solutions? Ulan Software is here to help.