For banks and credit unions, the race to win the loyalty of younger consumers has been underway for quite some time now. As these Gen Zers, also known as Zoomers, begin to take important steps in their lifetime financial journey, they are opening checking accounts, applying for credit cards and developing—good or bad—the behaviors and choices that will shape their financial lives for decades to come.
This presents a bit of a challenge for banks. Gen Zers—who currently make up about 22% of the U.S. population—don’t approach banking the same way their parents did. Research from the Primax Payments Pulse Study, which surveyed more than 1,700 U.S. consumers about their payment habits and financial preferences, offers valuable insights into how younger customers view financial services and what they expect from their banks. For financial institutions hoping to build long-term relationships with this generation, the research points to several strategies that can enhance their efforts to attract and retain these valuable consumers.
GenZ hasn’t given up on traditional banking. Yet.
One of the most important lessons from the Primax research is that Gen Z isn’t necessarily abandoning traditional banking products. Instead, they are demanding better experiences. Credit cards, for example, remain widely used by younger consumers despite frequent headlines suggesting that Gen Z prefers alternative payment tools. What really matters to this generation is not the product itself, but how easy and intuitive it is to use. If a payment experience feels slow, confusing, or inconvenient, younger consumers will quickly look for another option. Convenience in retail shopping and purchasing, for instance, has created high expectations when it comes to services, and they have little patience for any process that doesn’t offer near-instant gratification.
This is why mobile wallets, peer-to-peer payment platforms, and contactless cards have all become part of their everyday financial life. These tools are natural fits for a generation that manages much of its daily life through smartphones. For banks, this means marketing should highlight how their services integrate seamlessly into a digital lifestyle. Instead of focusing exclusively on technical features, successful messaging often relies on use cases; demonstrations of how easily customers can split dinner bills with friends, send money instantly, or make purchases without ever leaving the couch or reaching for a wallet.
The role sports betting plays
However, the digital convenience that Gen Z values can also introduce new financial challenges. One of the most notable, and troublesome, is the rapid rise of online sports betting.
Betting apps have made wagering easier than ever; in fact, not just easy, but entertaining. Instead of visiting a casino or sportsbook, users can place bets instantly from their phones, often funding those bets through debit cards, credit cards, or digital wallets. The simplicity of that process has fueled explosive growth in the industry, particularly among younger consumers.
For financial institutions, this trend raises important concerns. Studies show that excessive gambling behavior is often linked to rising consumer debt as individuals use borrowing tools to fund bets or chase losses. In some cases, this can lead to significant financial strain and higher delinquency risk. Analysts have also noted that legalized online sports betting has been associated with increased credit card balances and financial instability among certain groups of consumers. According to a TransUnion study:
“Betting activity increased to 30% of consumers in Q2 2025, compared to 25% in the same period of 2024, according to a new report from TransUnion (NYSE: TRU). The increase was primarily among Gen Z and Millennial bettors—34% and 42%, respectively. The total monthly debt payment for Millennials and Gen Z consumers is up 20% and 27%, respectively. While it is normal for younger adults to accrue debt as they buy homes, have children, etc., these trends strongly outpace the rate of inflation (6%) and wage growth (8%).”
While many of the participants in online betting see it as entertainment, it’s clear that easy access to betting platforms can blur the line between recreation and risky financial behavior.
1. Appeal to their need for security
Security remains one of the most important considerations for Gen Z consumers deciding how to pay. Even though they are comfortable with digital technology, younger customers are highly aware of fraud risks and the importance of protecting personal information. The Primax study found that consumers frequently choose payment methods they perceive to be safer, particularly when making larger purchases or conducting transactions online.
For banks, this creates an opportunity to highlight the security tools they offer. Real-time fraud alerts, transaction monitoring, and the ability to instantly lock or unlock a payment card all provide reassurance that a customer’s accounts are protected. Marketing messages should emphasize both convenience and security.
2. Make it rewarding
Rewards programs also play a major role in how younger consumers choose their payment methods. According to the Primax research, a large majority of consumers say rewards influence whether they use a debit or credit card. For Gen Z, however, rewards need to feel relevant to everyday life.
Traditional programs built around airline miles or luxury travel may not resonate as strongly with young adults who are earlier in their careers and spending more on everyday experiences. Community banks may find greater success promoting rewards tied to dining, streaming subscriptions, online shopping, or entertainment.
3. Give them guidance
Many Gen Z consumers are navigating adulthood during a period of economic uncertainty, rising housing costs, and increasing student debt. As a result, many are actively seeking guidance about budgeting, building credit, and managing financial responsibilities. The Primax research suggests that younger consumers are accumulating debt faster than older generations, which makes financial education especially valuable. Educational content that addresses real-world financial behaviors, from spending habits and credit management to the dangers of emerging trends such as online betting, can position a community bank as a trusted advisor rather than just a service provider.
4. Keep it personal
Personalization is also becoming increasingly important. Gen Zers are growing up in a world shaped by personalized digital experiences. From streaming services recommending new entertainment opportunities to social media feeds tailored to individual interests, this generation expects services that adapt to their preferences. Financial institutions can create stronger engagement with younger customers by leveraging data analytics to provide customized insights, targeted offers, and tailored financial advice.
Now is the time
Perhaps the most important takeaway from the Primax study is that banks have a unique opportunity to build relationships with Gen Z right now… relationships that could potentially last for decades. To do that successfully, banks may need to rethink how they market their services. Move products and rates to the back and move personalized, convenient services to the front. By combining strong digital capabilities, relevant rewards, personalized insights, and practical financial guidance, banks can position themselves as partners in helping these younger consumers navigate their financial futures. Community banks that understand this shift, and adapt their marketing strategies accordingly, will be well positioned to build lasting relationships right now.
Bank Marketing Center
We’re Bank Marketing Center, the leading subscription-based, automated marketing platform designed especially for community banks. We are presently helping the marketers at over 300 financial institutions craft and distribute topical, compelling marketing communication that builds trust in their brand, deepen customer relationships, and grow revenue. We do this by automating the essential marketing functions banks rely upon; content creation, social media scheduling and monitoring, digital asset management, compliance routing, and more.
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Want to learn more about what we do for bank marketers to help them succeed? 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.