The Era of Banking Change
Millennials and Generation Z maintain a fundamentally different relationship with financial institutions compared to previous generations. As you mention as a millennial, visits to bank branches have become rare, often limited to mandatory contract signings.
Katrin Kaurov's Perspective on Gen Z
In a recent article published on Finextra on March 17, 2025, Katrin Kaurov, co-founder and CEO of Frich, explains why traditional banks struggle to capture Generation Z's attention. According to her, this generation doesn't conceive a "relationship" with a bank like previous generations did.
Kaurov identifies several essential characteristics of Gen Z that explain this phenomenon:
- Digital-first orientation and limited attention span: Long or complex processes are quickly abandoned
- Turbulent economic context: Tendency toward "doomspending" (immediate spending) rather than long-term planning
- High technological expectations: Accustomed to intuitive apps, Gen Z rejects obsolete banking interfaces
- Aversion to financial jargon: Complex terms and fine print are ignored
Contrary to common belief, Gen Z does care about finances, but in a difficult economic context (precarious job market, high rents, student debt), they seek tools that make financial management "simple, transparent, and even fun."
Online Communities as Alternatives
Facing this disconnection, younger generations turn to alternatives like Reddit, where communities such as r/SwissPersonalFinance offer a space to exchange information about income, expenses, investments, and mortgages. These forums allow peer-to-peer experience sharing, considered more authentic and relevant than institutional advice.
The Success of Neobanks
Neobanks have understood these new expectations by offering simple interfaces, quick registration procedures, and features adapted to modern lifestyles. Their direct approach and accessible language contrast with the traditional communication of established banks.
Neobanks: Building Digital Communities Beyond Geographic Boundaries
Unlike traditional community banks that serve specific geographic areas, neobanks are creating entirely new types of communities based on shared interests and financial goals rather than physical location:
- Global connections: Millennials and Gen Z can engage with like-minded peers across borders
- Interest-based groups: Communities formed around specific financial goals or lifestyle choices
- Peer support systems: Platforms where users share financial tips and experiences
- Comparative insights: Features showing how your spending habits compare to others in your demographic
For younger generations who value authenticity and peer recommendations, these digital communities provide something traditional banks can't: genuine connections with others facing similar financial challenges. As Kaurov notes with Frich, peer comparisons keep users accountable "in a fun and interactive way," turning money management from a solitary task into a social experience.
This approach resonates particularly well with millennials and Gen Z, who often trust peer recommendations over institutional advice. By facilitating these community interactions, neobanks are creating ecosystems where users learn from and motivate each other—turning banking from a transaction-based service into a platform for connection and growth.
An Approach Centered on Concrete Goals
As Kaurov suggests, rather than talking about APR, mortgage loans, or credit scores, financial institutions should focus on tangible and realistic goals for Gen Z. Instead of adopting a condescending tone, they should speak authentically and help this generation navigate an economy that isn't favorable to them.
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Source: Finextra - Why banks are failing to capture Gen Z's attention