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Industry insights

Top 5 Digital Banking Features for Generation Z

Michal Maliarov
min read

In the fast-paced world of modern banking, Gen Z is setting the pace. Born into a digital age, Gen Z demands more from their banking experience than ever before. Let's take a deep dive into the top 5 most used and demanded features and how is modern banking sector adapting to the needs of the new generation of users. 

Hyper-personalisation: The art of real-time tailoring

Gen Z is not just a generation. It's a digital native user base. Digital banking is no longer a simple service, it’s a live platform that allows banks to create comprehensive ecosystems of life solutions. These ecosystems go beyond financial services, extending to a rich array of non-financial products and services intuitively tailored to Gen Z's real-time needs. Think of it as a financial and lifestyle fusion.

Perfect service tailoring is of course impossible without a robust smart data backbone that platforms like TapiX provide. To create an ever-changing bank app that sees the real-time journey of its user and continually adjusts to their needs, you need to know why Gen Z do what they do. You need information, analytics, and most importantly, you need data. Data is king. 

Instant payments and notifications: The need for speed

Average time for payment notification to appear
Average time for payment notification to appear (source: Built for Mars)

Gen Z is all about speed, and they expect their banking to keep up. Instant payment solutions like Venmo and Zelle are their go-to tools for quick transactions, with digital wallets like Apple Pay, Google Pay, and PayPal following right after. It's not all about payment. Notifications need to be instant too.

Splitting bills, reimbursing friends, or making purchases—all of this happens in real-time. Waiting for transfers to clear is a thing of the past. Gen Z wants their money to move as fast as they do and banks are continuously finding new ways to integrate these options into their banking platforms as seamlessly as possible. 

Instant notifications with correct data usage go hand in hand with that. While banks need to make payments as hassle-free as possible, they need smart data to make sure users know what they're paying in the first place. For that, categorization is key. Imagine having instant notifications of your payments as soon as you make them, without the need of ever opening up the bank app. 

Personalized financial insights: Your digital money mentor

Gen Z is hungry for financial knowledge and guidance. They don't just want to see their account balances; they want actionable insights. Apps like Mint and YNAB cater to these demands by offering budgeting tips, spending analysis, and personalized recommendations aligned with individual financial goals. 

It's like having a financial advisor in their pocket, guiding them through the complex world of personal finance. But it all starts with a proper personal finance management tool that integrates into the banking platforms and makes all those bells and whistles possible in the first place. And that means having a platform like TapiX to sort through data chaos and create clean usable data that turns into actual advice. 

Going green: Being aware of your footprint is “in”

As Gen Z embraces digital banking solutions, they're not just looking for convenience; they're also seeking alignment with their values. Gen Z, more than any other generation, places a high premium on the Environmental, Social, and Governance (ESG) framework. 

For them, it's not just about managing their finances; it's about contributing to a more sustainable and socially responsible world. ESG considerations are at the core of their banking choices, as they want their money to support businesses and initiatives that prioritize sustainability, social impact, and ethical governance. With that in mind, using smart data to help people to better awareness is key to keep them coming back. And there are tools like Eco Track by Tapix that help with just that. 

Non-financial services: More than just banking

Cashback Feature in Digital Banking
Cash back Feature in Digital Banking

Gen Z wants a holistic approach to banking. They expect their banking app to integrate with non-financial services like ride-sharing, food delivery, and online shopping. It's about simplifying their daily life.

Many banking institutions are integrating various non-financial sections into their digital platforms, connecting the world of finance with special offers like VIP treatment, online shopping cash back, or exclusive sales, bringing clients value and a reason to keep using their services. 

Gen Z is steering the course of modern banking with its desire for a blend of convenience, speed, security, personalization, and control. To meet their demands, financial institutions must stay agile and adaptive. Gen Z's influence is pushing banks and fintech companies to innovate, providing banking experiences that align seamlessly with their digital-first lifestyles. As Gen Z continues to mold the future of banking, financial institutions are embracing the challenge of meeting their ever-evolving expectations, driving forward a new era in banking that resonates with the tech-savvy generation.

About author

Michal Maliarov

Senior insider

A creative enthusiast who has spent half of his life in the technology industry. Passionate about fintech, AI, and the mobile tech market. Navigating the thin line between the worlds of media and advertising for over 10 years, where he feels most at home.

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