How Different Generations Choose Banks: Key Insights for Financial Marketers

For financial marketers, understanding generational nuances is critical to optimizing acquisition and retention strategies in 2025 and beyond.

As banking continues its rapid digital evolution, one factor remains constant: not all generations bank the same way. From Gen Z’s digital-first approach to Baby Boomers’ trust in human interaction, the banking landscape is a generational mosaic of needs, behaviors, and expectations. This article will help you understand the differences between each generation when it comes to banking preferences and research behaviours.

Gen Z: Challenging To Attract And Retain

According to eMarketer’s U.S. Banking Consumer Habits by Generation 2024 report, Gen Z (ages 18–27) is proving to be the most elusive demographic for banks. Raised in the digital age, this generation values social and ethical consciousness, mobile accessibility, and personalization—but they rarely form lasting loyalties.

46.5% of Gen Z consumers use social media for banking research—nearly three times more than Gen Xers and Baby Boomers. Mobile banking apps are another key touchpoint, with 48.8% using their experience to evaluate banks, compared to just 27.8% of older generations.

But their digital fluency doesn’t equate to loyalty. Nearly 11% of Gen Z already plan to switch banking providers in the next 12 months—more than double the overall average. Their top trusted brands? Not traditional banks, but tech companies like Apple (40.5%) and PayPal (38.7%).

To win Gen Z, banks must embrace transparency, champion causes like DEI (13.1% cite it as a top factor in bank choice), and deliver seamless, mobile-first experiences backed by authentic digital marketing engagement—especially on platforms like Instagram, TikTok, and YouTube.

Key Takeaway: Gen Z values mobile-first, socially conscious experiences but lacks brand loyalty—banks must engage them with authenticity on digital and social platforms.

Millennials: Influenced by Ads, Driven by Experience

Millennials (ages 28–43) are career-focused, digitally savvy, and highly receptive to marketing—if done right. This group is uniquely open to advertising influence, with 11.4% saying bank ads are “extremely influential”, compared to just 2.7% of Boomers. But resonance matters: 39% say ads must align with their values to be persuasive.

Discovery is also digitally led. While Gen Z turns to social, Millennials prioritize bank websites (69%) and search engines (60%) for research. Mobile apps, emails, and reviews follow closely, showing a methodical and multi-channel approach to banking decisions.

However, Millennials are quick to switch if digital experiences fall short. 32.1% would leave a bank over product and service quality issues, such as lack of personalization or poor app design—nearly twice the rate of Gen Xers and Boomers.

To retain Millennials, banks should invest in responsive mobile platforms, hyper-personalized content, and consistent, transparent communication across touchpoints. Campaigns should focus on real utility and emotional resonance, not just product features.

Key Takeaway: Millennials are highly influenced by personalized digital experiences and values-aligned marketing—strong UX and meaningful messaging are essential to win them.

Gen X: Trust is Declining, Openness is Rising

Often overlooked, Gen X (ages 44–59) represents a financially stable cohort that’s quietly reevaluating its banking relationships. This generation still relies on its primary bank for trust—but that trust is slipping. The percentage of Gen Xers who cited their main bank as their most trusted provider dropped 14.4 percentage points in the last year—the steepest decline across all generations.

Gen X is increasingly open to nontraditional providers. While PayPal (36.6%) and Amazon (25.5%) rank high in trust, even 10.2% now trust digital-only US banks like Chime or Varo (similar to banks like KOHO and EQ Bank if you are reading this from Canada).

What’s driving this shift? A greater openness to diverse research channels and a stronger emphasis on digital convenience. Compared to Boomers, Gen Xers are significantly more likely to explore banking options via mobile apps (61.9% vs. 44.0%), social media (20.3% vs. 10.7%), and streaming service ads (14.4% vs. 8.5%). They’re also nearly twice as likely to use podcast ads to discover banking products (4.0% vs. 0.8%).

Beyond research behavior, Gen Xers are also more likely to trust nontraditional providers. 36.6% would buy from PayPal, and 25.5% from Amazon, purely based on brand trust—substantially higher than Baby Boomers.

For banks, this means it’s time to double down on digital innovation and retention strategies that rebuild trust—through transparent communication, community engagement, and consistent customer support tailored to this generation’s evolving expectations.

Key Takeaway: Gen X is losing trust in traditional banks and becoming more open to digital disruptors—rebuilding trust through transparency and digital convenience is key.

Baby Boomers: Loyal and Service-Oriented

If Gen Z is the most volatile, Baby Boomers (ages 60–78) are the most loyal. 70.9% trust their current bank based solely on brand reputation, making them nearly twice as trusting as Gen Z. They are also the least likely to switch: nearly three-quarters plan to stick with their provider over the next year.

But loyalty doesn’t come from flashy digital experiences. Boomers prefer analog touchpoints—60% cite physical branches as their primary awareness channel. They value face-to-face service, with 30.6% saying human interaction during purchase is “extremely important”—the highest of any generation.

Banking ads fall flat with Boomers. A third say advertising doesn’t influence them at all, and 34.3% believe no factor could make a bank ad persuasive. This means traditional advertising has limited impact, and trust must be built through consistent service, human connection, and proven reliability.

To engage Boomers effectively, banks must maintain strong branch networks, train frontline staff in empathy-driven service, and prioritize phone or in-person support over digital-only solutions.

Key Takeaway: Boomers are loyal and service-driven—prioritize human interaction, physical branches, and consistent in-person support to retain them.

Cross-Generational Strategy: One Size Doesn’t Fit All

The eMarketer report reveals a clear mandate for banks and financial marketers: segment by generation, but serve by behavior. Each cohort has distinct drivers:

• Gen Z needs mobile-first, socially conscious, and visually engaging digital outreach.
  
• Millennials want personalized, values-aligned experiences backed by robust digital platforms.
  
• Gen X seeks flexible, trustworthy alternatives—particularly among digital disruptors.
  
• Boomers thrive on brand familiarity, human interaction, and service dependability.
  

Closing Guidance

Financial institutions that want to remain competitive must evolve their acquisition and retention strategies with these generational nuances in mind. Omnichannel experiences, trust-building initiatives, and tailored communications will be key to winning loyalty across the age spectrum. If you’re ready to rethink your generational banking strategy, our team at Other.™ can help you future-proof your customer engagement approach.

Sources: eMarketer’s U.S. Banking Consumer Habits by Generation 2024