Generation Z Is Desensitized to Digital Advertising: Here’s How Banks Can Still Win Them Over

Generation Z represents about 20% of the U.S. population, meaning roughly 70 million Americans are between 12 and 27. However, in a recent survey by Capgemini, only 9% of financial service executives reported that they were actively targeting Gen Z customers with their current marketing strategies.

Is that a missed opportunity?

Considering that 84% of Gen Z plan to own their own business in the next five years, it looks to be that way. But as digital natives who grew up with smartphones and social media by their side, Gen Z has developed a remarkable ability to filter out traditional advertising. So, for banks seeking to capture their attention, a fresh approach is essential — the question is where to start.

Gen Z: What to Know

Their Mindset on Money

Gen Z is entering the financial world at a time of economic uncertainty. From navigating student debt to ongoing worries about inflation, this generation has a lot on its plate. And unlike their parents, they are more cautious about how they’re spending their money, often seeking financial literacy resources and insight on potential investment opportunities.

As the most tech-savvy generation to date, they almost all use digital finance apps like Venmo, PayPal, Vanguard, etc., which offer more spending flexibility than your standard wallet with cash and credit cards. Perhaps most importantly, they value advice on balancing saving, spending, and investing — something they generally go to sources like TikTok and YouTube for.

Their Mindset on Banks

When it comes to banks (or all brands, for that matter), Gen Z is picky about who they align with. They seek transparency, authenticity, and a company that shares their values, often digging into the details of a brand’s recent investments or acts of goodwill to determine their character.

They are less interested in the amenities of traditional banking models, such as in-office visits, personal banking concierges, etc., and are more attracted to fintech solutions that offer seamless digital experiences. In fact, a recent study indicated that 44% of Gen Z who bank with traditional financial institutions have changed their banking relationship in the last 12 months, often opting for mobile-centric services.

Their Interests

This is a generation that values creativity and self-expression. Recent studies show that around 60% of Gen Z engage in some form of artistic hobbies, such as painting, music, or writing, to cope with stress and explore their identities. They even love creative outlets like gaming, with an estimated 80% of the generation actively playing video games alone or with friends (and even their partners!).

However, they are by no means a generation of slouches — more than half of Gen Z is passionate about physical wellness, considering fitness to be a “very high priority” in their weekly routine and overall lifestyle. Brands that tap into these interests and support their creative pursuits can cultivate a strong connection with this demographic.

How to Market to Them

Consume Their Content

To understand what resonates with Gen Z, banks need to immerse themselves in the content the generation consumes. Spend time on platforms like TikTok and Instagram and pay attention to trending topics and popular influencers. Video content, particularly short-form video, is especially effective in capturing their attention.

Show What Your Brand Cares About

Gen Z wants to align themselves with brands that reflect their values. They’re well-known for being perhaps the most socially conscious generation to date. They care deeply about mental health, racial and gender equity, LGBTQ+ rights, and the environment. Moreover, they want the brands they associate themselves with to share those values.

Marketing to them is not just about what you sell but what you stand for. Highlight your bank’s commitment to social responsibility and community support. Whether through sustainability initiatives or supporting mental health awareness, make sure your efforts aren’t just visible and clear but genuine and authentic.

Guide Them

Gen Z craves financial education but doesn’t want to feel lectured. This is an important distinction, as going too far can have the opposite effect and leave them seeking information elsewhere.

Provide them with resources that align with their generational situation. Create engaging content like blog posts, webinars, and social media tips that address their specific financial challenges. Ally Invest, for example, offers an 18-page eBook to help young adults start investing, covering topics from overcoming fears to practical investment tips.

Building Trust Through Authenticity and Engagement

Data-Driven Insights

You probably know how valuable data is to the banking industry — the same applies to your advertising approach. By leveraging quantitative information about your audience, you can create a personalized marketing strategy to home in on the target demographic you’re looking to pursue.

For example, a recent study indicated that this generation has a unique attention pattern, losing their active focus on an ad in 1.3 seconds — less time than any other age group. It’s safe to say that they’ll require a different approach than what traditional advertising offers.

That means your ads need to hook the viewer immediately and maintain that attention throughout. As a result, creating engaging short-form video content (such as the videos that rule TikTok and Instagram) has begun to be the formula for winning them over.

Influencer Partnerships

Influencers play a significant role in shaping Gen Z’s opinions and purchasing decisions — so much so that entire social media trends have been based around following the actions of people with a blue check next to their username.

By partnering with influencers who align with your brand values, you can humanize your bank to an audience that otherwise considers it a very corporate, buttoned-up entity and make it more relatable. Choose influencers who might already be customers of your bank who genuinely believe in your mission and can authentically promote your services.

Omnichannel Approach

You want to avoid pigeonholing yourself to one form of media, and Gen Z expects a seamless experience across all channels.

To effectively engage Gen Z, banks should prioritize channels like TikTok, Instagram, and YouTube, as these platforms resonate most with their interests and habits. It’s also important to note that timing matters too: Research suggests that evenings, mainly between 7 p.m. and 10 p.m., are optimal for reaching Gen Z, as they are more active online during these hours, making it a great time to launch marketing campaigns.

If you want to take it a step further, consider incorporating interactive content such as polls and quizzes into your marketing tools, which can enhance engagement. Whether they interact with your brand on social media, through your mobile app, or in a physical branch, incorporating digital experiences in physical branches, such as self-service tablets and chatbots, can improve their overall experience.

Make Ads That Leave an Impression

With so many differences in lifestyle compared to generations prior, Gen Z presents a unique challenge for banks — but a unique opportunity as well. Their digital prowess and desensitization to traditional advertising force us to look at marketing differently, offering brands a chance to try marketing tactics they have never used before.

No matter what you decide, it’s important to act soon before the moment passes by. So, grab some coffee and prepare to do some research — after all, scrolling through social media ain’t all that bad.

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