May 8, 2026
Blog
Part 1 - Who Is Gen Z and Why the Branch Still Matters to Them
Three-Part Series: Modernizing Branches for Gen Z
Every generation reshapes banking in its own image. Gen X demanded ATMs. Millennials demanded mobile apps. Generation Z is demanding a financial institution that actually understands them.
The branch has a central role to play in answering that demand, as the place where the most important moments in a young person's financial life can be met with the expertise, empathy, and technology they deserve.
This first installment builds that foundation: who Gen Z really is, what shaped their relationship with money, and which specific moments in their financial lives make the physical branch irreplaceable.
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Who is Gen Z
Generation Z — born between 1997 and 2012 — is now between 13 and 28 years old. The oldest members of this cohort are already buying cars, renting apartments, starting businesses, and thinking about their first mortgage. In the United States alone, Gen Z represents more than 67 million potential banking customers. They are a present segment and the window to earn their loyalty is open right now.
Here is what defines them as banking customers:
They grew up in the shadow of financial crisis
Many Gen Z customers watched their parents navigate the aftermath of 2008: job losses, debt, foreclosures. This has made them financially cautious and deeply thoughtful about which institutions they choose to trust. They do not extend that trust automatically, only when a bank demonstrates, consistently and concretely, that it is acting in their interest.
Only 14% of Gen Z report that they "trust banks a lot" compared to nearly 30% of Millennials at the same age (CoinLaw, 2025). That gap is a service design opportunity and the branch is one of the best places to close it.
They are mobile-first, but not mobile-only
66% of Gen Z use their bank's mobile app as their primary banking method (YouGov, 2025). That number is expected. What is more strategically significant is that 35% of Gen Z still report visiting a branch in person. They are not abandoning the physical channel, they are saving it for the moments that matter most. And when they arrive, they expect the branch to be ready.
They have high financial anxiety and a real appetite for guidance
Despite their digital confidence, Gen Z is not self-sufficient when it comes to major financial decisions. A 2025 Drive Research study found that 78% rely on friends and family for financial advice, and 44% turn to social media. And yet, bank staff and financial advisors still rank as the most trusted source for serious financial decisions. The appetite for expert human guidance is there and the branch is the natural place to satisfy it.
They switch banks
61% of Gen Z have switched their primary bank in the past two years (CoinLaw, 2025). This is not a sign of indifference, is a sign of a high standard that, when met, produces lasting loyalty. The institutions that deliver consistently earn customers who stay, deepen their relationship, and bring their peers. That kind of compounding loyalty begins with a single branch interaction done right.
They are entrepreneurial and financially complex
Gen Z is one of the most entrepreneurially active generations in American history. Many are freelancers, gig workers,or small business owners by their mid-twenties. Their financial needs are often more sophisticated than their age suggests —and that complexity creates exactly the kind of high-value advisory interactions where branches excel.
When Gen Z comes to a Branch
Understanding when Gen Z visits a branch is as important as understanding who they are. They arrive at specific, high-stakes moments in their financial lives where human expertise, genuine care, and the right technology come together to create something no app can replicate.
These are the moments that matter:
Opening a first financial product
The first checking account, first credit card, first personal loan. Gen Z approaches these decisions with research and caution. Many prefer to complete them in person, where they can ask questions and feel that someone is genuinely responsible for getting them started correctly. This is the highest-value acquisition moment available to any branch. The institution that gets it right opens an account and opens a relationship.
Navigating a major financial decision
First mortgage application. Understanding retirement account options. Evaluating debt consolidation. These are decisions where Gen Z wants to sit across from someone who knows what they are talking about and is visibly on their side. 73% of Gen Z believe banks should do more to provide financial guidance on budgeting, debt, and planning (Oliver Wyman Forum, 2023). The branches that are structured to deliver this guidance serve their customers better and build a competitive position that compounds over time.
Resolving a problem
Fraud disputes, unauthorized transactions, account errors. When something goes wrong with their money, Gen Z wants a human being who can act immediately and take ownership of the resolution. A branch that handles these moments with speed and empathy converts a stressful experience into proof that the bank can be counted on when it matters most.
Starting or growing a business
Gen Z entrepreneurs often need in-person support to open business accounts, understand credit options, or access financial services for the first time as a business owner. This is a growing segment, and the branches that are ready to serve it will earn some of the most valuable and enduring commercial relationships of the next decade.
Seeking financial education
43% of Gen Z say that physical bank branches are important to them because they provide peace of mind (Oliver Wyman Forum, 2023). 57% consider branches to be an imperative, even as 45% of those same respondents cannot remember the last time they visited one (Apiture / Harris Poll, 2024). Branches that give Gen Z a compelling reason to walk in — through education, workshops, and genuine advisory programming — are the ones that will close the gap between stated importance and actual usage.
Building the branch they deserve is the work. Part 2 covers exactly that — from the space and the technology, to the digital tools and community presence that make a modern branch genuinely competitive.
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Sources:
1. OLIVER WYMAN FORUM — Global Consumer Sentiment (GCS) Survey (2023) https://www.oliverwymanforum.com/gen-z/2023/nov/speaking-gen-z-how-banks-can-attract-young-customers.html
2. AMERICAN BANKERS ASSOCIATION / MORNING CONSULT — Consumer Survey on Banking Methods (2024) https://www.aba.com/about-us/press-room/press-releases/consumer-survey-banking-methods-2024
3. APITURE / THE HARRIS POLL — "Attracting Gen Z and Millennials" Study (2024) https://www.apiture.com/half-of-gen-z-and-millennials-open-to-switching-primary-financial-institution-to-a-community-bank-online-only-bank-or-credit-union-new-apiture-study-finds/
4. YOUGOV PROFILES — "Gen Z's Financial Behaviors in 2025" (2025) https://yougov.com/en-us/articles/53419-gen-zs-financial-behaviors-in-2025
5. DRIVE RESEARCH — "2025 Banking Trends & Statistics: Insights From 1,000 Consumers" (2025) https://www.driveresearch.com/market-research-company-blog/banking-trends-statistics/
6. FEDERAL RESERVE FINANCIAL SERVICES — Consumer Payments Survey Brief (2024) https://fedpaymentsimprovement.org/wp-content/uploads/042624-consumer-brief.pdf
7. COINLAW / CHECKALT — "Millennial vs. Gen Z Banking Preferences Statistics 2025" https://coinlaw.io/millennial-vs-gen-z-banking-preferences-statistics/
8. PYMNTS INTELLIGENCE — "From Footprint to Foundation: How Big Banks Build Loyalty With Gen Z" (August 2024) https://www.pymnts.com/news/banking/2024/footprint-foundation-how-big-banks-build-loyalty-with-generation-z/
9. THE FINANCIAL BRAND — "How the Role of the Bank Branch Is Being Reimagined" (2025) https://thefinancialbrand.com/news/banking-branch-transformation/how-the-role-of-the-branch-is-being-reimagined-186964
10. STATISTA — "U.S. Mobile Banking Users by Generation" (2023) https://www.statista.com/statistics/1400710/mobile-banking-users-in-the-us-by-generation/
11. BAUER FINANCIAL / FDIC DATA (2025) https://www.bauerfinancial.com/u-s-bank-branches-are-down-and-up/
12. G+D (GIESECKE+DEVRIENT) — "The Rise of Gen Z: Appealing to a Digital-Native Generation" (2025) https://www.gi-de.com/en/spotlight/financial-platforms/gen-z-banking-how-banks-must-adapt