Is the future of banking still in brick and mortar, or is it being rewritten by Gen Z’s thumbs?
A new report from Corporate Insight, a financial services research firm, reveals generational divides in what customers want from their banks, and what’s driving many into the arms of fintechs.
The Fintech Monitor report, based on a Q1 2025 survey of 972 U.S. bank account holders, pulls back the curtain on what really matters to consumers across age groups, income levels, and banking relationships.
Gen Z Banks on Vibes
While older generations prioritise basics like no fees, branch access, and solid service, Gen Z prefer banks that feel personal, digital, and aligned with their values.
According to the survey, Gen Z is much more likely to choose a bank based on social recommendations (from friends, family, and TikTok influencers) and brand values. It’s not just about rates and features, it’s about whether the institution aligns with how they see the world.
Despite fintechs mainly operating on the internet, not all digital experiences are the same. The survey shows that while 81% of Boomers and Gen X are satisfied with their bank’s interface design, only 40% of Gen Z say the same. Dissatisfaction from younger users also extended to customer service and tools for tracking spending, a sign that what incumbents consider “good enough” might no longer cut it.
Loyalty Still Lives in the Lobby
Despite the generational divide, traditional banks still enjoy strong customer loyalty. Over 80% of incumbent-only customers have never even considered switching, with Boomer respondents leading the pack at 91%. Their top reason for staying is simple: “I like my bank.”
But that stat may say more about who the incumbents are holding onto than how well they’re attracting new customers.
If traditional banks want to stay relevant for the next generation of account holders, they need to deliver a digital experience that feels intuitive, speaks to customers’ values, and earns trust through transparency and word of mouth.
Will Jack, senior analyst at CI, said: “This report shows that financial institutions need tailored strategies for different demographic segments. While traditional banks maintain strong customer loyalty, especially among older generations, they must enhance their digital capabilities to compete with fintechs that excel in these areas. Conversely, fintechs should consider how they might address the branch access and customer service features that continue to resonate with many consumers.”