Gen Zers look to their parents’ bank for their first banking relationship

The news: The overwhelming majority of Gen Zers banks where their parents do, emphasizing the importance of banks’ relationships with parents.

• That’s according to a 2024 survey by investor news platform Seeking Alpha of 276 college and high school students, primarily from the US.

The findings: Where Gen Zers’ parents bank seems to influence their first banking relationships more than any other factor.

• 70% of Gen Zers bank where their parents do, which points to their valuing convenience and trust.
• Reinforcing these concepts, Gen Zers listed a bank’s reputation (35%) as their main focus when examining a new bank.
• That beat out interest rates (20%), branches and ATMs (20%), customer service (10%), promotions (10%), and technology (5%).

What this means for banks: We’ve covered the complicated financial relationship between Gen Zers and their likely parents, Gen Xers.

• 46% of Gen Zers rely on financial support from their parents.
• Over half don’t pay for their housing, presumably because many still live at their parents’ home. 

This means they likely want to use a financial institution (FI) that allows them to interact closely and easily with their parents, upon whom they still heavily rely. This reliance may mean many young consumers don’t consider themselves financially savvy enough to find a brand new FI on their own.

Key takeaways: These findings differ slightly from EMARKETER’s recent survey results, which revealed Gen Zers prioritize ATM location slightly more than a bank’s reputation. Regardless, both surveys reveal FIs must prioritize marketing their brand reputations to attract more Gen Zers. 

Gen Zers being more likely to trust their parents’ bank underscores the importance of building relationships with current customers who are known to be parents of Gen Zers or younger children.

• FIs should target parents with communications that advertise any parent/child- or teen-friendly banking products that let parents oversee a more limited starter account.
• FIs that don’t currently offer products tailored to parents and their dependents should make them a priority in their customer acquisition strategies.