Millennials and Gen Z turn to brands over banks for financial products

Gen Z and millennial consumers are turning to brands for their banking needs, new research from Vodeno/Aion Bank has found.

In an independent survey of 3,007 consumers from the UK, Belgium and Germany by the European banking-as-a-service (BaaS) provider, over half (52%) of 25-34-year-olds said using financial products from their favourite brands is more convenient than banking with a traditional retail bank.

The same proportion also said that brands offer financial products better tailored to their specific needs when compared to traditional institutions. Meanwhile, 51% of respondents in the 25-34 demographic said they believe brands are making banking more accessible.

The study found that a quarter of those surveyed said convenience was the main reason for banking with their favourite brand, rising to 45% amongst those aged 35-44.

Furthermore, over a third (35%) in the 25-34 age group said they had used an embedded banking product because the brand offered them a good rate.

Nearly four in 10 (37%) in the survey said that they are more likely to seek out brands offering buy now, pay later (BNPL) products and flexible payment options due to the high cost of living, with this figure highest among those 25-34 (54%) and 16-24 (44%).

A further 50% in the 25-34 group said they will only stay loyal to brands offering financial benefits and incentives like BNPL and cashback. The youngest consumers surveyed were also mostly likely to use a brand’s loyalty card to make purchases if it included BNPL, with 65% of those 25-34 and 53% in the 16-24 group.

When asked how often they shop with their favourite brands, 19% of respondents said ‘monthly’ and a further 16% said ‘once every two or three weeks’. However, among those who have used a brand’s embedded banking product, 36% said they return to that brand’s app or website between three and five times a month, with this figure rising to 43% among the 25-34 age group.

Chief revenue officer at Vodeno, Kim Van Esbroeck, said: “Millennials and Gen Z are charting a new financial course, and increasingly relying on embedded finance products from their favoured brands for their banking needs. Our survey paints a clear picture as to why: convenience, tailored solutions and accessibility are the cornerstones driving this transformation.

“For brands, the case for embedded finance is clear. Not only can they offer their customer greater choice with different banking products, but in doing so they create a better customer experience with new revenue streams.”

    Share Story:

Recent Stories

Technology and the equity release market
Dan McGrath talks to chief executive officer at Air Group, Paul Glynn, about the equity release sector, changes to the market and how technology can allow the industry to move forward for lenders and consumers.

The later life lending landscape
Michael Griffiths speaks to Darren Deacon and Stuart Heavens from Family Building Society about the current state of play in the later life lending market


Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.