Why Are Millennials and Gen Z Gravitating to the Big Banks?
For decades, American retail banking has revolved around the baby boomer generation. But now, based on 2020 Census data, boomers are the minority cohort. Younger generations have overtaken boomers – and overwhelmingly moved their business toward the largest banks. Seventy percent of millennial and Gen Z consumers claim a large bank as their primary financial institution (PFI). This study examines demographic elements of the new predominant generations to understand the shift and to determine whether they can be convinced to switch to smaller institutions.