How millennials and Gen Z bank: 97 stats you need to know
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Millennials and Gen Z have long been poised as key customer segments for financial institutions, but these younger customers largely remain a mystery to many banks and credit unions because of their unique spending habits and banking needs.
You already know the huge potential these segments have for your FI, where their spend habits, loyalty to their banks, and their desire for more robust digital banking services have already and will continue to shape the way your institution innovates. In this article, we’re going to share 97 stats around millennial and Gen Z banking that will help inform your FI’s banking strategies in 2021 and beyond.
These stats will offer insight into how these segments prefer to bank, the types of banking services they’re looking for, and their loyalty to traditional banking. Let’s dive right in.
KEY TAKEAWAYS
⚡️ 84% of Gen Z feel technology has a direct impact on how they approach financial management
⚡️ 57% of young banking customers report it’s incredibly important to them that their bank or credit union helps them improve their financial wellness
⚡️ 67% of millennials and 90% of Gen Z are willing to turn to big tech and nonbanks for better banking tech and faster banking services
⚡️ 58% of millennials want their bank to offer them more personalized advice and solutions that help them succeed financially
⚡️ 83% of Gen Z and 78% of millennials are frustrated with traditional banking processes
Millennials, Gen Z, and money
The average take-home pay for millennials is approximately $3,100 per month
The COVID-19 pandemic caused more millennials and Gen Z to be concerned about financial management (53%)
40% of millennials and 37% of Gen Z are using peer-to-peer payments more frequently
21% of millennials and 17% of Gen Z are using buy-now-pay-later and installment payment plans
57% of Gen Z and 50% of millennials are increasingly relying on e-transfer banking services to pay bills and perform everyday banking transactions
The average millennial carries approximately $4,700 in credit card debt, while Gen Z carries roughly $2,000 in credit card debt
When it comes to investing, reports show Gen Zers can expect just 2% returns on their investment portfolios
Gen Zers have, on average, $115 in spending money each month
Millennials save around 15% more than Gen Zers, but have 169% more debt
76% of millennials believe they are unable to achieve their financial and personal goals because of debt
57% of Gen Z are unsure about their savings
41% of Gen Z are anxious about their finances or financial futures
Yet, more than a quarter of Gen Zers don’t believe young adults need to worry about proactively saving money
56% of millennials live paycheck-to-paycheck
To achieve their financial goals, 90% of millennials are willing to make lifestyle sacrifices (like giving up vacations or dining out)
When it comes to financial literacy, 84% of Gen Zers rely on their family and friends for financial information and guidance
84% of Gen Z feel technology has a direct impact on how they approach financial management
50% of millennials and Gen Z have a ‘rainy day fund’ they regularly contribute to
Millennials have an average saving rate of about 9.8%
Only 24% of millennials are considered to be financially healthy
57% of young banking customers report it’s incredibly important to them that their bank or credit union helps them improve their financial wellness
59% of Gen Zers consider themselves to be financially independent and try to avoid debt at all costs
Wells Fargo’s 2020 Annual Retirement Study found that 18% of millennials began saving more money, more frequently, due to the pandemic
64% of younger banking customers (such as Gen Z) regularly turn to social media platforms like YouTube and Instagram to learn about money
Research from Oracle shows that younger generations of banking customers are far more anxious—and discerning—about their finances
Both millennials and Gen Z make wages that are roughly 20% lower than what young adults were making 30 years ago
Roughly 33% of Gen Zers use a savings account compared to 44% of millennials when it comes to budgeting and saving
The average Gen Zer holds 2.2 credit cards (the lowest of any generation)
87% of Gen Z still prefer sticking with traditional FIs over new neobanks or fintechs
Millennials are 5x more likely to close all of their accounts at their primary bank
30% of millennials have an emergency fund
Around 40% of millennials have credit card debt
How millennials and Gen Z like to bank
44% of Gen Z rank debit cards as their preferred method of payment, followed closely by cash
Among the Gen Zers who hold a basic account, 54% don’t plan on opening a second account, no matter the incentive
50% of millennial and Gen Z consumers would open an account with a bank based on referrals from friends and family
Where 65% of millennials will hold a checking account with their primary bank, that number drops to 56% for Gen Z
79% of millennial customers use online banking to open a deposit account
Gen Z is already using mobile banking at 50% to 80% of the pace of millennials
71% of these younger customer segments would use entirely computer-generated banking services
93% of millennials prefer no-fees banking (and factor this into their decision when choosing a financial institution)
On top of that, 41% of millennials own a no-fees credit card (the second-highest of any generation, next to baby boomers)
99% of Gen Z and 98% of millennials use a mobile banking app for many everyday banking tasks, such as viewing account balances, checking their credit scores, and depositing paychecks
Gen Z in particular love in-branch banking, where this segment conducts their banking in-branch more than millennials and at four times the rate of baby boomers
58% of Gen Z prefer to open new accounts using mobile or desktop banking tools
1 in 3 Gen Z with a loan used an online lender, in contrast to the 1 in 5 millennials with a loan who used an online lender
Younger generations like millennials opt for banks with better digital banking experiences, where 43% abandon mobile banking tools because of poor user experience
Research is showing that 67% of millennials and 90% of Gen Z are willing to turn to big tech and nonbanks for better banking tech and faster banking services
Both millennials and Gen Zers are more likely than older generations to be customers of more than one financial institution
Yet, roughly 74% of millennials and 72% of Gen Z would prefer to use just one bank or credit union for all of their financial needs
29% of Gen Z use their primary FI’s mobile banking tools 2-6 times per week
Nearly half of millennials count on banking tech and fintech to overhaul the way banks operate
Many millennials are turning to branded credit cards (not those issued by their primary FI), where Deloitte found 80% of millennials use these cards
Around 47% of Gen Zers and 46% of millennials would switch to a digitally-only bank
Of all generations, millennials are the most likely to use both online and mobile banking channels
67% of millennials want better digital budgeting tools from their banks
Some of the top frustrations millennials have with their banks include technology failure (33%), inconsistent experiences (23%), and the lack of a custom experience (16%)
What millennials and Gen Z are looking for from their banking
50% of millennials would be willing to make the switch to banking with Google or Amazon
Millennials are 24% more likely to value financial education and guidance than Baby Boomers and Gen X
58% of millennials want their bank to offer them more personalized advice and solutions that help them succeed financially
67% of millennials and Gen Zers would share more data with their banks if it resulted in better benefits
Meanwhile, 63% feel sharing data should inherently deliver more personalized banking products and service advice
77% of millennials would switch for a bank that offered both online and in-branch banking options (challenger banks)
Research shows that over half of Gen Z banking customers use digital wallets and want more P2P options
63% of millennials and Gen Zers feel the banking tech enables them to have better oversight of their finances — making better digital banking experiences more imperative than ever
21% of millennials and Gen Z customers place more importance on experiential factors versus fees
42% of younger customers want their banks to provide them with timely insights and solutions as their needs arise
65% of millennials would be open to switching to a community bank if they offered better mobile banking solutions (like mobile check deposit)
75% of millennials would switch banks just for a better mobile banking experience
Gen Zers are 25% more likely than other generations to provide their personal data in exchange for more predictive and personalized digital banking experiences
59% of young banking customers want real-time insights and adjustments based on their spending
49% of millennials want real-time and forward-focused insights based on spend analysis
78% of younger banking customers (like Gen Z) would like to receive financial advice from their FIs, but only 28% actually do
Loyalty and sentiment around financial institutions
48% of millennials have accounts with more than one financial institution—meaning their loyalty is hard-won but worth the effort in retaining it
47% of millennials use digital banking tools but are also the fastest segment to ditch these tools when they have poor user experiences
Just 30% of millennial banking customers are actively engaged with their FI—making these customers more likely to switch to another bank or credit union than any other generation
65% is the average customer satisfaction score for millennials and their banks, compared to 88% for baby boomers and seniors
28% of Gen Z believe all banks are the same
27% of millennials have sought advice from banks, but ranked many top banks as a least-loved brand
19% of Gen Z customers are ready and willing to jump ship for another bank or credit union
71% of millennials would rather visit the dentist than listen to what their banks have to say about financial management
33% of younger banking customers don’t even believe they need a bank
48% of millennials have accounts with more than one financial institution
83% of millennials would readily switch banks if another offers better rewards
When it comes to engaging with their banks, millennial customers have the lowest level of engagement (only 25% are fully engaged)
And millennials are also 2.5x more likely to switch banks versus baby boomers and Gen Xers
Gen Zers who hold one or more checking accounts are 2x more likely to hold these accounts at financial institutions they consider to be outside of their primary FI
41% of the time, customers think the products and services their banks offer them are offered only with the bank’s best interest in mind.
49% of tech-savvy, younger banking customers would stay loyal to their bank based on the quality of their service and customer care
And 50% would stay loyal to a bank or credit union that provided them with educational, helpful content
65% is the average customer satisfaction score for millennials and their banks, compared to 88% for baby boomers and seniors
19% of Gen Z customers are ready and willing to jump ship for another bank or credit union
78% of millennials and 83% of Gen Z are frustrated with traditional banking processes
Despite this, 64% of millennials would rather do anything than go through the hassle of switching banks
67% of millennials are concerned their PFI (personal financial information) can be easily hacked
Only 5% of millennials feel their bank understands them financially
64% of Gen Zers would prefer to use traditional banking services over big tech based on trustworthiness (if the services were more robust)
25% of Gen Zers trust digital banking solutions (think: big tech) over traditional banks
Grab our quick-take of this article for the top 8 stats your bank should know about millennials and Gen Z banking in 2021 👇
Meet the author, Jacalyn 🏔
Jacalyn is a content marketing pro with a background in scaling Canadian startups and SMBs. When she’s not writing, you can find her outdoors, or hunting down the best craft beer in her city.