TikTokers Are Not Joking: Why Generation Z Is Leaving Banks

Generation Z, born between the late 1990s and early 2010s, is an active user of digital technologies and has new demands for financial services. Many representatives of this generation prefer alternative ways to manage their finances and are increasingly moving away from traditional banks. Let’s consider the main reasons for this behavior.

Generation Z grew up in the digital era and values ​​convenience, transparency, flexibility, and speed. They prefer online banking and mobile apps that allow them to manage their finances anytime and anywhere. Traditional banks that offer limited online capabilities or inconvenient mobile apps are losing their trust.

Reasons why Generation Z is moving away from traditional banking

Here’s why the shift is real:

🧩 1. Speed Is the New Currency
Top-ups. Transfers. Payments
If it’s slower than a TikTok scroll, it’s already obsolete

🧩 2. Transparency Builds Trust
No more “bank managers” or fine print
Everything should be visible at a glance — fees, limits, transactions
Clear. Direct. Zero surprises

🧩 3. Flexibility = Survival
One day it’s crypto. Next day it’s freelance. Then it’s a flight to Lisbon
Gen Z doesn’t live linearly — their card shouldn’t either
Any currency. Any country. Any lifestyle

🌀 Bottom line:
🛫 This shift isn’t a rebellion — it’s an evolution. Gen Z doesn’t hate banks. They just don’t see the point of them.

❓What would a bank be like if it were invented in 2025 instead of 1825?

A bank invented in 2025 would probably use modern technology and innovation. Here are some features that could characterize such a bank:

1. Digital banking and mobile apps. The bank could provide most of its services through mobile apps and online platforms, minimizing the need to visit physical branches.
2. Artificial intelligence and machine learning. The bank could use AI and ML to analyze data, personalize services, and improve customer experience.
3. Blockchain and cryptocurrencies. The bank could offer services related to cryptocurrencies and blockchain technologies, ensuring secure and convenient transactions.
4. Robotization and process automation. Routine operations could be performed by automated systems, which would reduce costs and increase efficiency.
5. Integration with biometrics. The bank could use biometric data such as fingerprints, facial recognition, and voice authentication to ensure customer safety and convenience.
6. Personalized financial recommendations. The bank could use algorithms to analyze the financial behavior of customers and offer them the most suitable products and services.
7. Ecosystem approach. The bank could collaborate with other financial and non-financial institutions to offer customers comprehensive solutions within a single ecosystem.
8. Focus on cybersecurity. In the face of growing cybersecurity threats, the bank would pay special attention to protecting customer data and ensuring transaction security.
9. Big Data-based services. The bank could use big data to identify trends, predict customer behavior, and optimize its operations.
10. Integration with the Internet of Things (IoT). The bank could offer financial management services through IoT devices, such as smart speakers or other gadgets.

➡️ Any currency. Any country. Any lifestyle — Get your Pintopay card
💵 And $10 cashback waiting for you!

According to research, more and more people prefer to make financial transactions online. For example, the number of users of mobile banking apps is growing, and many of them choose these services over traditional bank branches.

Generation Z pays attention to fees and hidden charges that may be associated with banking services. They strive to find more favorable offers and often find them in alternative financial platforms.

For example, some banks offer favorable terms for loans and deposits, but then introduce hidden fees or increase interest rates. This can lead to customer dissatisfaction and their departure to competitors.

Generation Z strives for variety and choice. They want to have access to various financial products and services that can meet their needs. Traditional banks often offer limited choice, which can lead to their departure to more flexible and innovative financial services.

For example, while some banks offer only standard banking products, other financial platforms may provide investment opportunities, loans with unique terms, or more flexible terms for managing personal finances.

After several financial crises and scandals involving large banks, Generation Z has become more skeptical of traditional financial institutions. They are looking for more transparent and reliable alternatives.

Examples of scandals and problems with banks can increase this mistrust. Generation Z strives for more open and honest financial relationships.

Fintech startups offer new and innovative financial services that can compete with traditional banks. They can offer more favorable terms, more convenient interfaces, and a more personalized approach.

For example, some fintech platforms offer lower fees, more flexible lending terms, and more convenient tools for managing finances. This can attract representatives of Generation Z who are looking for more favorable and convenient options.

Generation Z has its own values ​​and priorities, which may differ from those of previous generations. They strive for more sustainable and responsible consumption, which may influence their choice of financial services.

For example, some representatives of Generation Z may prefer banks that invest in social and environmental projects, or use financial instruments to support sustainable businesses.

Conclusion
Generation Z is leaving banks for a number of reasons, including the desire for convenience, the search for more favorable conditions, mistrust of traditional financial institutions, the influence of fintech startups, and changing values. Traditional banks need to adapt to these changes and offer more attractive conditions to representatives of Generation Z in order to retain their loyalty.