Bridging the Gap: How Regional Banks Can Win Gen Z in North America, Europe, and Asia-Pacific

Introduction

Generation Z—digital natives born between the mid-1990s and early 2010s—are rapidly becoming a dominant force in the global economy. With their unique expectations, values, and digital fluency, Gen Z is reshaping the banking landscape. For regional banks across North America, Europe, and Asia-Pacific, the challenge is clear: adapt to Gen Z’s evolving needs or risk losing relevance. Yet, the path to winning Gen Z is not uniform. Regulatory environments, cultural expectations, and competitive dynamics differ widely across regions, demanding tailored strategies for success.

Understanding Gen Z: Universal Traits and Regional Nuances

Across the globe, Gen Z shares several defining characteristics:

• Digital Sophistication: Gen Z expects seamless, intuitive digital experiences and is quick to abandon clunky or outdated platforms.
• Personalization: They want to feel known and understood, with services tailored to their individual needs.
• Social and Environmental Values: Gen Z actively seeks out brands—including banks—that align with their values on diversity, inclusion, and sustainability.
• Financial Savviness: Despite their youth, Gen Z is highly interested in financial literacy and new asset classes, from crypto to ESG investments.
• Short Attention Spans: With an average attention span of just eight seconds, Gen Z demands fast, engaging, and frictionless interactions.

However, how these traits manifest—and how banks should respond—varies by region.

North America: Digital-First, Value-Driven, and Socially Conscious

In North America, Gen Z’s expectations are shaped by a mature digital ecosystem and a strong emphasis on social justice. They are:

• Highly mobile and social: Most Gen Zers use mobile banking apps and expect banks to engage them on platforms like TikTok and Snapchat, not just Facebook or Twitter.
• Skeptical of traditional banking: Many are open to neobanks and fintechs, especially those offering innovative products like Buy Now, Pay Later (BNPL) and crypto wallets.
• Value-driven: A significant portion would switch banks for stronger commitments to diversity, equity, inclusion, and environmental causes.

Case Study: Some North American regional banks have successfully partnered with influencer platforms and creator economies, offering financial products tailored to gig workers and digital creators. Others have launched ESG-focused investment products, directly addressing Gen Z’s desire for purpose-driven banking.

Regulatory Note: The U.S. regulatory environment is complex, with strict requirements for new entrants. Most neobanks partner with traditional banks for back-end services, while established banks are leveraging their trust and scale to experiment with digital assets and metaverse engagement.

Europe: Open Banking, Hyper-Personalization, and Platform Models

European Gen Zers benefit from progressive regulations like PSD2 and open banking, which have fostered a vibrant fintech ecosystem. Key trends include:

• Open banking adoption: Gen Z expects seamless integration between banks and third-party apps, with real-time data sharing and personalized offers.
• Hyper-personalization: Banks are using AI and machine learning to deliver tailored products at the right life stage, moving beyond broad segmentation.
• Platform thinking: The rise of platform business models enables banks to offer a suite of services—financial and non-financial—through a single digital interface.

Case Study: In the UK, banks have used incentives and hyper-personalized marketing to attract Gen Z, but the real differentiator has been the ability to offer modular, flexible products that adapt to individual needs. In markets like Germany and France, digital-only banks have succeeded by focusing on underserved niches, such as gig workers or young families.

Regulatory Note: Easier licensing in Europe has enabled more neobanks to launch full-service offerings, but competition is fierce and customer acquisition costs are high. Success hinges on leveraging data for personalization and orchestrating holistic customer journeys.

Asia-Pacific: Super-Apps, Wealth Management, and Digital Innovation

Asia-Pacific is home to some of the world’s most dynamic digital banking markets. Here, Gen Z’s expectations are shaped by:

• Super-app ecosystems: Platforms like WeChat, Grab, and Gojek integrate banking, payments, and lifestyle services, setting a high bar for seamless, all-in-one experiences.
• Wealth management innovation: Young, affluent Gen Zers in markets like Singapore and Hong Kong expect mobile-first, personalized investment tools—including robo-advisors and ESG portfolios.
• Alternative assets: Interest in digital assets, NFTs, and the metaverse is high, with banks experimenting with tokenization and new investment vehicles.

Case Study: In Hong Kong and Singapore, the introduction of digital banking licenses has spurred a wave of innovation. Banks are partnering with fintechs to deliver customer-centric, data-driven experiences, and are automating processes like KYC to reduce friction for digital-native customers.

Regulatory Note: Regulatory environments vary widely, from supportive (Singapore, Hong Kong) to more restrictive (some Southeast Asian markets). Success requires navigating local compliance while delivering on Gen Z’s demand for speed and innovation.

Recommendations: Localizing Digital Transformation for Gen Z

1. Meet Gen Z Where They Are: Engage on the platforms and channels Gen Z prefers—whether that’s TikTok in North America, super-apps in Asia, or open banking APIs in Europe.
2. Prioritize Personalization: Use data and AI to deliver hyper-personalized products, offers, and experiences. Move beyond demographic segmentation to life-stage and behavioral targeting.
3. Champion Social Impact: Demonstrate authentic commitment to ESG, diversity, and inclusion. Gen Z will hold banks accountable for real action, not just marketing.
4. Innovate with New Products: Explore digital assets, BNPL, and tokenization to meet Gen Z’s appetite for alternative financial products—while ensuring regulatory compliance.
5. Embrace Platform Thinking: Build or partner to offer integrated, seamless experiences that go beyond banking—think payments, wealth management, and lifestyle services in one place.
6. Accelerate Core Modernization: Legacy technology is a barrier. Invest in cloud, APIs, and agile delivery to enable rapid innovation and scalability.
7. Localize for Regulatory and Cultural Context: Tailor digital transformation strategies to local regulations, customer behaviors, and competitive dynamics. What works in one region may not translate directly to another.

Conclusion

Gen Z is not just another customer segment—they are the future of banking. Regional banks that understand and adapt to the unique needs of Gen Z in their markets will be best positioned to win loyalty and drive growth. By combining global perspective with local expertise, banks can bridge the gap and deliver the digital, personalized, and purpose-driven experiences Gen Z demands.

Publicis Sapient partners with banks worldwide to accelerate this transformation—helping them close the digital gap, harness the power of data, and create the next generation of banking experiences for Gen Z and beyond.

Relevant Links

• Gen Z: What Do They Want From Their Banks?
• Gen Z: What Do They Want From Their Banks?
• Gen Z and the Metaverse: How Banks Can Build Loyalty in Virtual Worlds
• Gen Z y el Futuro de la Banca Digital en América Latina: Oportunidades y Desafíos para Ejecutivos de la Región (LATAM)
• From Social Justice to Social Banking: Designing Financial Products for Gen Z’s Values
• Génération Z et l’Avenir de la Banque en Europe : Saisir l’Opportunité d’une Nouvelle Génération (Europe)