Demand for a new bank account is high among Gen Zers (2024)

FAQs

Demand for a new bank account is high among Gen Zers? ›

Breaking down the data: As Gen Z leaves their parents' homes, starts college, or enters the workforce, they want to assume control over their own individual financial paths. 25% of Gen Z plans to open a new bank account in the next six months, while just 10% of the general population plans to do so.

In a Javelin digital banking report from 2022, more than 68% of Gen Z consumers said they banked with the five largest consumer-facing banks: Bank of America, Chase, PNC, Wells Fargo and Capital One. In Magana's latest report, that percentage had dropped to 61%.

Trust in Financial Institutions

Interestingly, Gen Z is more likely to trust national banks, while Baby Boomers are more likely to trust local and regional banks.

According to LinkedIn's latest Workforce Confidence survey, 76% of Gen Z Employees want more opportunities to learn and practice new skills. Gen Z are avid learners who value personal and professional growth. Since this generation witnessed rapid technological advancements, they are always eager to acquire new skills.

Banking Preferences:

40% of Gen Z prefer to use online banking as their primary method of managing their finances (Varo Money). 63% of Gen Z believe that a bank's mobile app is essential (Business Insider Intelligence).

Over half (57%) of respondents do not have enough emergency savings to cover three months of expenses. Nearly one-third (30%) feel they don't make enough money to save. Only 15% of Gen Z put a set percentage of their paycheck into a savings account each month.

Unsurprisingly, the oldest generation—Baby Boomers—have amassed the most impressive savings balances. Our survey revealed that around 17% of Baby Boomers have more than $500,000 saved, while that figure dwindles to just 4% among both Gen Xers and Millennials and a mere 2% among Gen Zers.

Gen Z Struggles With Mental Health

According to McKinsey, over half (55%) of Gen Zers report having either been diagnosed or receiving treatment for a mental health condition, compared to 31% of people aged 55 to 64, who have had decades longer to seek and get treatment.

TikTok is followed on the list of Gen Z's most trusted brand's relative to all U.S. adults by Snapchat, Spotify, Twitch, Discord, and Instagram.

For example, a new study by the Investment Company Institute (ICI) finds that “Gen Z households have nearly three times more assets in the [retirement] plan accounts (adjusted for inflation) that Gen X households did at the same age.” More Gen Z-ers have retirement plans set up and they've saved more in those accounts.

What is the most wanted job for Gen Z? ›

Driving the news: Young people today are more likely to job-hop, but they are also looking for stability by pursuing careers as CEOs, doctors and engineers, according to a new Axios/Generation Lab study. By the numbers: Gen Z-ers surveyed said their top career goals were businessperson, doctor and engineer."

Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.

Gen Z spend most of their money on household bills and expenses, with 52.3% saying they spent the most money on these costs. 17.2% of Gen Z don't think they'll ever have enough money to buy their own home. The estimated average amount Gen Z spends on socializing is $166.75 per month, totaling $2,000 a year.

Gen Z attitudes toward money and finances are sometimes aligned with and sometimes starkly different from those of older generations. Research suggests that Gen Z trusts traditional banks more to secure their data and needs digital services to be exceptional to retain their customers.

But when it comes to Brand Love, legacy banks have secured their place in Gen Z's Top 10, with Lloyds, Barclays, and NatWest ranking 4th, 5th, and 8th, respectively. These brands might not top the overall league table, but they've certainly captured Gen Z's hearts.

Most Gen Z's already have a bank account: 72% of Gen Z adults have a checking account, and 57% have a savings account. ¹ However, their parents or guardians likely set up these accounts for them.

The results of the survey showed that the estimated average amount Gen Z had in savings was $2,410.57. Just under a quarter (24%) of respondents said they had between $501-$1,000 in savings.

About 17 percent of Gen Zers have personal loan debt, a higher share than in any other generation, with young adults living in the nation's 100 largest metropolitan areas owing a median amount of $1,743 in this type of debt.

While it may be surprising that Gen Z has the lowest financial literacy levels — and these levels are even lower among Gen Zers who don't attend college — financial experts say there are several reasons as to how this came to be.

According to a survey carried out in October 2022, 94 percent of the adult population in the United States had a bank account in 2022. The share of respondents with a bank account remained the same between 2019 and 2022, which was a two percent increase of banked households compared to 2015.