Financial Services Institutions (FSIs) face a pivotal moment: capturing the attention and loyalty of Generation Z (Gen Z). Born between 1997 and 2012, this digitally native cohort is redefining financial landscapes with expectations for instant results, ethical practices, and seamless digital experiences. For FSIs ready to evolve, the potential is immense.
Decode the Gen Z financial consumer
Gen Z embodies a blend of caution and ambition. Having witnessed economic downturns like the 2008 financial crisis, they are prudent yet entrepreneurial. While they may harbor skepticism toward traditional banking, they are eager to build wealth and prioritize financial security earlier than previous generations. Notably, Gen Z is projected to become the wealthiest generation by approximately 2035, primarily due to a significant wealth transfer from Baby Boomers.
The digital mandate: Beyond basic banking
For Gen Z, digital proficiency is non-negotiable. A staggering 99% have used a mobile banking app in the last month, with nearly 50% managing their finances exclusively via smartphones. Moreover, 60% prefer to open accounts directly from their mobile devices.
Embedded financial experiences
FSIs can thrive by integrating services into Gen Z’s daily digital routines. This includes payment options within social platforms, investment opportunities in gaming environments, or banking services accessible through lifestyle apps. When financial management becomes an organic part of daily activities, Gen Z is more likely to engage.
Invisible banking infrastructure
Gen Z favors financial services that operate seamlessly in the background. They desire systems that automate savings, align investments with their values, and manage recurring payments autonomously. FSIs that handle financial complexities behind the scenes while offering simple interfaces will resonate with this demographic.
The ethics edge: Purpose-driven banking
Gen Z is deeply influenced by ethical considerations. Approximately 51% cite environmental, social, and governance (ESG) factors as important when choosing a payment provider.
Values-aligned investments
FSIs offering transparent, values-based investment options gain significant traction with Gen Z. This involves creating portfolios that exclude industries like fossil fuels or weapons manufacturing while highlighting sectors such as renewable energy, education, and healthcare. Importantly, these options must provide competitive returns, demonstrating that ethical investing doesn’t necessitate financial sacrifice.
The speed imperative: Banking at Gen Z’s pace
Accustomed to instant gratification, Gen Z finds traditional banking timelines sluggish. They expect real-time transactions, immediate account openings, and swift loan approvals. FSIs must invest in infrastructure that supports these expectations to remain relevant.
Frictionless onboarding
With an average attention span of just 8 seconds for apps before abandonment, every additional form field or verification step risks losing potential customers. Leading FSIs are implementing streamlined account creation with biometric verification, auto-fill capabilities, and gamified elements to engage users effectively.
Communication: Speaking Gen Z’s language
Financial jargon alienates this generation. They prefer straightforward explanations delivered through visual and interactive mediums.
Financial education through content
Short-form video content that simplifies complex financial concepts resonates with Gen Z. FSIs creating TikTok-style tutorials, interactive calculators, and gamified learning experiences about budgeting, investing, and financial planning position themselves as trusted advisors.
Hyper-personalized insights
Generic financial advice doesn’t suffice. Gen Z expects insights tailored to their specific situations, goals, and values. AI-driven platforms providing hyper- personalized recommendations, spending analyses, and goal tracking foster stronger relationships with these young consumers., leading to loyalty and advocacy.
Building trust with a skeptical generation
Despite their digital immersion, Gen Z values human connection. The most successful FSIs will blend high-tech offerings with high-touch support when needed.
Transparent fee structures
Hidden fees and complex charge structures repel Gen Z consumers. FSIs must offer transparent, preferably low or no-fee models with clear explanations of any necessary charges.
Human-backed digital experiences
When issues arise, Gen Z desires immediate access to human assistance through their preferred communication channels—be it chat, text, or video call. Financial institutions that provide seamless transitions from AI-driven support to human experts instill confidence in their services.
Gen Z in the workforce: Shape the future from within
Beyond being financial consumers, Gen Z is also entering the workforce in significant numbers, bringing their digital-first mindset and values-driven approach into the financial sector itself. As young professionals, they expect modern workplace tools, AI-driven efficiency, and seamless collaboration across digital platforms. FSIs that embrace these expectations—whether through AI-powered knowledge management, flexible work models, or purpose-driven company cultures—will not only attract top Gen Z talent but also benefit from their fresh perspectives on innovation, inclusion, and customer engagement. By integrating their needs as employees, FSIs can better position themselves to serve Gen Z as customers, creating a future-proof financial ecosystem.
The path forward
To capture the Gen Z market, FSIs must undergo fundamental transformations—not just in digital interfaces but in their entire approach to banking. This entails developing products that align with Gen Z values, creating experiences that match their digital expectations, and communicating in ways that build authentic connections. Institutions that succeed will view Gen Z not merely as a market segment but as collaborators in designing the future of the financial services industry. By embracing digital innovation, ethical transparency, and instant gratification, FSIs can forge lasting relationships with a generation poised to reshape the financial landscape for decades to come.
How OpenText empowers FSIs to win with Gen Z
To successfully engage Gen Z, FSIs need more than just digital transformation—they need a connected, intelligent, and secure ecosystem. The OpenText suite of cloud solutions empowers financial institutions to meet Gen Z’s expectations with agility and innovation:
OpenText Content Cloud ensures seamless access to critical documents, enabling real-time knowledge management and frictionless digital experiences.
OpenText Experience Cloud helps FSIs deliver hyper-personalized, omnichannel interactions that resonate with Gen Z’s demand for intuitive and engaging financial experiences.
OpenText DevOps Cloud enables FSI application delivery teams to ship better software—faster—with AI-driven automation, testing, and quality to meet Gen Z’s high expectations of their mobile apps.
OpenText Analytics Cloud leverages AI-driven insights to provide tailored financial recommendations, predictive analytics, and automated reporting—enhancing both customer engagement and operational efficiency.
OpenText Business Network Cloud streamlines and secures transactions, enabling embedded finance and invisible banking infrastructure that align with Gen Z’s digital lifestyle.
OpenText Cybersecurity Cloud safeguards sensitive financial data and transactions, ensuring trust, compliance, and resilience against evolving cyber threats.
By harnessing the power of OpenText Cloud solutions, FSIs can modernize their operations, create value-driven financial experiences, and build lasting relationships with a generation that is redefining the future of finance.
