Admittedly, I haven’t come across formal research that directly links platforms like FanDuel or DraftKings to how people choose a bank. Lately though, with all the hype around these two wagering/gaming platforms, I’ve found myself thinking about how the financial behavior of Gen Z must surely be influenced by them.
Consider this: Gen Z is already gravitationally pulled toward fintech apps, digital wallets, embedded finance, and non-traditional banking services providers. According to one report, about 31% of teens are using payment apps like Cash App or Venmo as alternatives to traditional banks, while in the second quarter of 2025, according to a TransUnion report, 34% of Gen Z consumers reported participating in betting activity. When you consider that Gen Z-ers number 70 million or so, that’s nearly 24 million consumers.
Why is this the case? In the Raddon report titled “From Teen to Lifelong Customer,” we see that “Gen Z’s formative years were marked by disruption; 9/11, the dot-com crash, the rise of Amazon and Google, the launch of the iPhone, the financial crisis, the explosion of social media, COVID-19 and now rapid AI adoption. These conditions produced a generation that is adaptive, skeptical, and deeply digital.” In short: Gen Z-ers are digital natives who expect seamless, mobile-first experiences in all areas of life, including banking.
Then there's the piece published in The Financial Brand back in August titled “Go vertical: The urgent new growth strategy for community banks.” It drives home a sobering statistic: “Fintechs, neobanks and digital banks captured 44% of new checking-account openings in 2024, nearly half of the new accounts.” How? Largely because they offered immediate value; some offered signup bonuses between $250 and $500. MoneyLion, for instance, provides $250 in Instacash, while Chime’s SpotMe feature offers $200 in fee-free overdrafts”. Sound familiar? Sounds a lot like Fanduel’s “Bet 5$, get $150.” These immediate gratification propositions prove irresistible to consumers, particularly younger demographics.
So how might wagering platforms tie into all of this? Platforms like FanDuel and DraftKings are built on rapid onboarding, an intuitive and engaging user experience, instant rewards, and strong promotional hooks, i.e.,“place a bet, see results, win or lose, get credit back.” In the language of Gen Z, the worth of any financial service is increasingly judged by how fast it is, how simple it is, and how fun it is. For them, banking isn’t just savings and loans; it’s part of a lifestyle. So when Gen Z opens a bank account, they might ask subconsciously: “Does this feel as slick as the apps I use to wager, trade, pay friends, and get rewards?”
What this means for community bankers
So if you’re a community-bank marketer thinking about Gen Z, think about how you might:
Refine your value proposition
As already mentioned, fintechs captured a large chunk of new accounts by offering immediate value. Betting platforms similarly entice users with bonus credits or instant rewards for engagement. When a Gen Z-er sees a bank say, “we’ll give you $300 just to open an account” or “use our app and we’ll reward you,” that experience mimics the engagement they’re accustomed to when betting on their favorite sports team.
Define your vertical and align the experience
If you adopt a vertical model, you must tailor your digital services to match that audience. If you target Gen Z consumers who are familiar with online gaming or wagering, consider features like:
- Referral bonuses
- Instant rewards
- Early wage access
- Loyalty benefits
- Digital wallet integration
- Faster account onboarding
- Rewards for engagement
- Gamified savings challenges
This isn’t just branding; it’s building a user experience that feels made for them. Think about this: If a Gen Z user is frequently on a betting app or a digital payment app, how far away is a well-crafted, Gen Z-specific digital engagement from that ecosystem? If the bank experience doesn’t feel like an app native to their lifestyle, they probably won’t choose it. In this sense, is banking that different from betting? The mechanics are more serious, but the user-experience expectations are all-too similar: seamless, digital-first, mobile-centric.
Speaking of a seamless experience and ease of use, this is from the Wall Street Journal’s November 13 article, “Robinhood Offers to Bring Cash to Your Doorstep, for a Fee”: “The brokerage is joining with food-and-drink delivery app Gopuff to allow customers to withdraw cash from their Robinhood bank accounts and have it brought right to their door.” For a nominal delivery fee, users can skip the ATM and have money delivered in a sealed paper bag while they are at home.”
It begs the question, should banks be delivering cash to customers in paper bags?
Keep on the lookout for switchers
Statistics show that Gen Z now views digital capabilities as critical; 60% would switch banks for a better app experience. Entice Gen Z-ers with offers that motivate them to bring you their business.
Lean into personalization
The vertical banking playbook emphasizes “product-market fit” for specific market segments. For Gen Z, that means understanding their financial attitudes: for instance, many are savings-oriented, but expect gamified or social experiences. A community bank might offer Gen Z consumers accounts with features such as peer challenge savings, cashback for social causes, and the ability to save in ways that are tied to their “instant reward/gratification” lifestyle.
Align values
While wagering platforms may not be known as “purpose-driven,” Gen Z-ers look to entities that share their values; with an emphasis on, for instance, sustainability and authenticity. Community banks should align with local causes (as always!) and offer financial education for these young adults who are just beginning their financial life’s journey. This complements the digital, gamified experience with a human touch; an advantage community banks can exploit.
Grow with the Gen Z times
Gen Z consumers are entering the financial marketplace with expectations forged by fintechs and lifestyle platforms; including wagering apps like FanDuel and DraftKings, that emphasize immediacy, value, personalization, and digital excellence. By designing products and experiences that meet Gen Z expectations, (from onboarding to promotions that generate switching from other providers) community institutions can be well positioned to capture this younger market.
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Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com. As always, I welcome your thoughts.