Generation Z—those born between 1997 and 2012—are digital pioneers, redefining the future of banking with their demand for seamless digital experiences, hyper-personalization, and authentic social impact. Yet, a significant disconnect exists between what banks are offering and what Gen Z expects, a phenomenon increasingly referred to as "Gap Z." This gap is especially pronounced on social platforms, where Gen Z spends much of their time but finds little credible financial guidance from traditional institutions.
Gen Z is the first generation to grow up fully immersed in digital environments. They spend an average of eight hours a day on their phones, with a significant portion of that time on platforms like TikTok and Snapchat. These channels are not just for entertainment—they are where Gen Z learns, socializes, and seeks advice, including on financial matters. In fact, nearly 40% of Gen Z report that their spending habits are influenced by social media, and hashtags like #PersonalFinance have garnered billions of views on TikTok alone.
However, Gen Z is also highly skeptical of traditional financial advice and wary of misinformation online. Focus group insights reveal a split: some see TikTok as overrated for financial advice due to trust issues, while others value the platform for its accessibility and bite-sized content—provided they can cross-reference multiple sources. This skepticism, combined with a lack of credible voices from established banks on these platforms, leaves a vacuum often filled by unverified influencers.
Despite the risks of misinformation, banks have a unique opportunity to bridge Gap Z by meeting Gen Z where they are—on the very platforms that shape their financial behaviors. Research shows that while 95% of financial institutions offer financial literacy materials on their marketing channels, only 15% are active on TikTok or Snapchat. Most banks still focus on Facebook, Twitter, and Instagram, missing the chance to engage Gen Z in their preferred digital spaces.
This underutilization is a missed opportunity. Gen Z is actively seeking financial education, with a strong appetite for tools that help them manage money, avoid debt, and invest in line with their values. Banks that step up to provide credible, engaging, and transparent content on social platforms can counter misinformation, build trust, and foster long-term loyalty.
Gen Z’s average attention span is just eight seconds. To capture their interest, banks must deliver financial education in short, visually engaging formats—think quick explainer videos, interactive stories, and infographics. Content should be jargon-free, relatable, and tailored to real-life scenarios Gen Z faces, such as managing gig economy income, understanding credit, or navigating student loans.
Gen Z values peer recommendations and community validation. Partnering with credible financial influencers or even empowering young employees to share their own financial journeys can make content more relatable and trustworthy. Banks can also facilitate community discussions, Q&As, and live streams to foster two-way engagement.
Gen Z is values-driven, expecting brands to demonstrate real commitment to diversity, inclusion, and sustainability. Banks should highlight their ESG initiatives, showcase diverse voices, and be transparent about their products and practices. Content that connects financial decisions to broader social impact—such as investing in sustainable funds or supporting community projects—resonates strongly with this cohort.
Banks have the advantage of regulatory oversight and established trust. By providing clear, fact-checked information and debunking common financial myths circulating on social media, banks can position themselves as reliable sources. Interactive quizzes, myth-busting series, and direct responses to trending financial topics can help set the record straight.
Building trust is not a one-off campaign. Banks should maintain a consistent presence, posting regularly and responding to comments and questions. Creating dedicated teams for social engagement, hosting virtual events, and encouraging user-generated content can help sustain meaningful relationships.
Gen Z’s expectations and digital behaviors vary by region. In North America, engagement on TikTok and Snapchat is critical, while in Asia-Pacific, integration with super-apps and digital wallets is key. European Gen Zers expect seamless open banking experiences and hyper-personalization. Across all regions, Gen Z is open to innovative products like BNPL, crypto, and tokenized assets—but only if these are presented transparently and with clear educational support.
Banks should also tailor content to address Gen Z’s unique financial realities, such as gig work, multi-earning lifestyles, and interest in alternative assets. Offering tools for personal finance management, automated investing, and ESG-linked products—explained in accessible ways—can further differentiate banks as partners in Gen Z’s financial journey.
The gap between banks and Gen Z is not insurmountable. By embracing the platforms Gen Z uses most, delivering credible and engaging financial education, and aligning with their values, banks can transform skepticism into trust. The institutions that act now—experimenting, learning, and iterating alongside Gen Z—will not only capture the loyalty of this generation but set the standard for what banking can be in the digital age.
At Publicis Sapient, we help financial institutions accelerate this transformation—harnessing the power of data, technology, and human insight to create the next generation of banking experiences for Gen Z and beyond. The future of banking is social, transparent, and purpose-driven. The time to bridge Gap Z is now.