“Banks don’t need to disappear into smartphones, but they do need to fit more naturally into people’s financial lives. And while many institutions still deliver value through face-to-face interactions, the bar for digital engagement has been raised."
A few years ago, banking meant branches, card, and logins. Maybe even a relationship manager. Today, some of these remain, but for many, a branch is no longer the default.
Gen Z isn’t rejecting banking altogether. They’re just doing it differently. They no longer see the rationale for waiting in line when a well-designed app can handle the same task, faster and more intuitively. Convenience is measured in clicks, not in service counters. Seamless onboarding, personalized recommendations, and embedded finance have become the standard, borrowed from the platforms the digitally native use to manage everything from deliveries to investments.
Banks are no longer judged solely on their products and services, but on the speed and quality of the experience that surrounds them
This shift is visible in the numbers. Neobanks and fintech apps have surged in adoption, having crossed the one billionth customer mark in 20231, offering everything from budgeting tools to crypto wallets. Meanwhile, traditional banks are under pressure to adapt, not just in appearance, but in how they operate.
In a twist of timing, there may be some accidental alignment. Because as GenZ favor digital interactions over a trip to the bank, the industry is facing its own internal brain drain. Experienced professionals are retiring, taking decades of institutional knowledge with them.