As bank CEOs describe their outlook for 2023, one word keeps coming up: uncertainty. Uncertainty about rates. Uncertainty about lending. Uncertainty about regulators, the global economy, and the financial health of consumers. But two things are certain: First, consumers will always demand more. Second, they will take their business to the providers that deliver on those expectations.

Gen Z Breaks Into the Financial Services Mainstream

Gen Z is the new customer—and their business must be won today. In 2023, there will be more adult Gen Zers than adolescents for the first time—about half the size of the millennial population. This digitally native generation relies heavily on digital for their finances, and that won’t change. Players across the banking sphere must act now to grab adult Gen Zers’ business, while also trying to win over younger consumers and lay the groundwork for upselling them in the future.

Providers will start reshaping the customer journey to match Gen Z’s preferences by:

• Building awareness where Gen Z is. Gen Zers use a more diverse set of social platforms than any other generation. They go to these platforms to build their financial literacy (think “finfluencers” and “FinTok”).
• Cutting through the noise during the consideration phase. Gen Z is effortless at researching online and seeking word-of-mouth recommendations. And they’re the most likely to consider nontraditional providers like Apple, per our US Banking Digital Trust Benchmark 2022.
• Having humans on standby to close the deal. Digital natives they may be, but they also want human support. Gen Z eclipsed all cohorts but baby boomers in opening a checking account in person over the past year, per our April 2022 US Account Opening Benchmark survey.
• Building loyalty by cracking the personalization-privacy-ethics question. Gen Z consumers stick with brands that offer personalized experiences while placing data privacy front and center. They also demand ethical brand values and action.