Generation Z – born between 2000 and early 2010s – is the last of the “super-sized” generations, with over 4 million births annually. As Gen Alpha ushers in an era of declining birth rates, Gen Z is stepping into adulthood with growing economic influence. The oldest members are now in their mid to late 20s, entering the workforce and building financial independence, while the youngest are just beginning high school. Their impact on the financial services industry is already being felt – and it’s only accelerating.

What makes Gen Z unique isn’t just their size but the era they’ve grown up in. Their formative years were shaped by disruption: 9/11, the dot-com bust, the rise of Amazon and Google, the launch of the iPhone, the financial crisis and Great Recession, the explosion of social media, the COVID-19 pandemic and remote learning and now the rapid evolution of AI. These events have created a generation that is adaptive, skeptical and deeply digital – true digital natives who expect seamless, mobile-first experiences in every aspect of life, including banking.

Unlike previous generations, Gen Z’s financial journey begins early. Today’s teens aren’t waiting until college to open their first account — many receive their first debit card by age 12. By their teenage years, they’re managing money through mobile apps, using peer-to-peer payment platforms and adopting digital wallets like Apple Pay. By high school graduation, most plan to keep that first debit card – making early relationships with financial institutions more important than ever. And with 20% of teens already using investment services, it’s clear: Gen Z isn’t just the future of banking – they’re the present.

To better understand this generation’s financial behaviors, we surveyed 1,200 high school students and 1,200 parents of children ages 8–18. What we found may surprise you – and it offers critical insights for financial institutions looking to build lasting relationships with Gen Z.

1. Mobile-first is the baseline

70% of teens received their first mobile phone by age 12. For Gen Z, mobile-first isn’t optional – it’s expected. Financial institutions must rethink products, services and processes from the ground up, not just digitize legacy systems. Even terminology may need updating – for example, “checking account” may feel outdated to a generation that rarely writes checks.

2. Branches still matter

54% of teen debit card accounts were opened in person. Despite being digital natives, Gen Z still values face-to-face interactions for first-time banking experiences. This presents an opportunity for financial institutions to educate and build relationships early.

3. Win the parent to win the teen

78% of parents open their child’s debit account at their own bank. To capture Gen Z, institutions must market effectively to parents. With 25% of parents believing age 12 is appropriate for a first debit card – and 53% by age 14 – early engagement is key. Leveraging transaction data to identify parents with children can help target outreach at the right milestones.

4. Fintechs are gaining ground

31% of teens use payment apps like Cash App or Venmo as a bank alternative. This poses a competitive threat, especially as fintechs expand their offerings. While hybrid models (digital + local presence) still hold an advantage, early relationship-building is essential. Notably, 45% of teens bank with a big bank, while only 15% use a credit union and 12% a local bank – both of these latter institution types trailing behind payment app usage.

5. Digital wallets are mainstream

51% of teens use digital wallets regularly. Cardless payments are the norm, and Gen Z is comfortable storing money in retailer-specific wallets like Starbucks, for example. Being the “top of wallet” in a digital environment requires new strategies – including incentives and positioning. As subscriptions and online shopping grow, card credentialing becomes increasingly important.

6. Social media drives financial decisions

78% of teens have been influenced by social media for a financial decision. TikTok (55%), YouTube (41%) and Instagram (39%) are the top platforms where this influence has occurred. Financial institutions must develop authentic, educational social media strategies to engage this audience.

7. Parents are the most trusted advisors

58% of teens trust their parents for financial advice, compared to just 12% who trust social media. Parents are the top source of financial education (63%), followed by social media (37%). This presents an opportunity for financial institutions to support family-centered financial education and build trust.

8. Debt awareness starts early

29% of Gen Z already feel they’ve taken on too much debt. While this is lower than Millennials (41%) and Gen X (37%), it signals early financial pressure. As Gen Z’s financial needs grow, institutions must help them avoid the debt traps of older generations.

9. Schools aren’t meeting financial education needs

Only 34% of parents are extremely confident schools will teach their children enough about personal finance. Parents want their kids to learn budgeting (66%), checking account usage (69%), investing (47%) and credit management (44%). Financial institutions can fill this gap with educational programs and tools.

10. Financial anxiety is high

79% of teens worry about future expenses, and only 17% feel extremely confident in making financial decisions. Most (54%) are only somewhat or not confident at all. Financial institutions must showcase tools for budgeting, saving and planning – these are essential to building confidence and loyalty.

Strategic Considerations: Building Lifelong Relationships With Gen Z

The data is clear: Financial institutions must act now to build lasting relationships with Gen Z. Here are five key takeaways for financial institution leaders:

• Trust and Local Impact: Gen Z values authenticity and community. Institutions that demonstrate local relevance and transparency will earn their trust
• In-Person + Digital: Hybrid experiences resonate. While Gen Z is mobile-first, they still value in-person interactions – especially for first-time banking
• Parental Influence: Parents drive early banking decisions. Winning the parent often means winning the teen
• Financial Education: Teens want to learn – especially about savings, budgeting and investing. Institutions can fill the gap left by schools
• Sticky Loyalty: First accounts often last into adulthood. Early engagement can lead to long-term relationships

The future of banking isn’t just about technology – it’s about trust. Financial institutions that understand Gen Z’s needs, values and behaviors will be best positioned to serve them today and retain them tomorrow.