High housing costs and stagnant wages are causing Gen Z and Millennials to delay marriage, homeownership, and parenthood, per a Capgemini and LIMRA study. And while 68% of these younger adults see life insurance as “essential for a healthy financial future,” current products aren’t resonating. Advertising messaging must close the gap in consumers’ understanding of life insurance benefits. To do this, targeted ads and communications must highlight living benefits and flexibility, offer low-cost, entry-level options and incentives, and engage consumers digitally.
Only about a third of Gen Zers and Millennials say they’re in good financial health—and roughly the same share say they’re good at setting up and following long-term financial plans, per a new study by Guardian Life. Younger consumers’ lack of confidence and limited use of professional guidance creates an opening. Insurers can position guaranteed savings and lower-risk wealth-building products as options to ease financial anxiety and support long-term planning. Such products include: whole life insurance which offers steady cash value growth and loan access, and indexed universal life which ties growth to market indexes with downside protection.
Deposits are moving out of community financial institutions (FIs) and into crypto exchanges—from 1% per month 18 months ago to 5% today, per PYMNTS. Instead of chasing these funds by trying to become more like crypto apps, community FIs are increasingly offering stablecoin products. Smaller FIs must not lose sight of what makes them stand out: human centricity, local knowledge, and customer service. By incorporating new technologies and digital currencies into their everyday offerings—instead of reinventing themselves—FIs can remain grounded in those differentiators while still potentially appealing to digital-first demographics.
Youth banking is a gateway to long-term customer relationships. But many financial institutions (FIs) miss out on properly building these relationships, per The Financial Brand. While it’s important to tailor marketing campaigns to young customers and their parents, the courting shouldn’t end with account openings. The longest-term customer—a Gen Alpha at the very beginning of their banking journey—will eventually make their own decisions about where to bank. If they’ve enjoyed using an FI’s app and resources and feel like the FI understands them and their needs, they may stay put.
The Trump administration overhauled the H-1B visa program by imposing a $100,000 fee on successful applications, a massive cost increase that is expected to create significant hiring hurdles for the finance industry. The banking talent pipeline is heading toward a painful reckoning. The firms that rely on a continuous stream of junior talent to feed their development teams will suffer most—which will push FIs to change how they staff. The inevitable outcome isn't necessarily hiring more high-skilled US workers, but a forced acceleration of the trend toward offshoring critical technology.
Fintech isn’t just a budgeting tool—it’s becoming a partner in Gen Z’s resilience, according to Plaid’s “The Fintech Effect” report. We knew that fintech use was on the rise and that Gen Zers even prefer these digital competitors to traditional banks. And these findings reinforce why financial institutions must either work with fintechs to deliver more complete suites of financial products, or prioritize developing them in-house. They also underscore the importance of viewing fintechs as potential partners, rather than competitors. This raises the question of whether charging fintechs fees for customer data access could backfire and drive fintechs—and customers—to competitors.
Friends are creating joint bank accounts for shared experiences and financial goals—a trend inspired by TikTok creator Mad Machen, per NBC News. That means there’s customer demand for shared savings tools that simplify group spending and reinforce social bonds, moving beyond the traditional household-only joint account. To capitalize on this, banks could offer a safer, next-generation product like a dedicated group savings fund. This solution would allow friends to collaboratively save, track contributions, and spend for a shared goal (like a trip) while legally protecting all participants by clearly defining individual ownership and liability.
The worldwide average session duration for apps in the Entertainment category was 7.3 minutes between April 2022 and June 2025, more than twice the time spent per session on the next-highest category, according to a June 2025 report from Airship.
Gen Zers prioritize saving money. But they aren’t all putting their savings where it can help them make more money, per a recent PYMNTS study. Financial institutions (FIs) have an opportunity to help Gen Zers save faster, earning their loyalty. But to help them put that money to work, FIs must have more insight into what customers are doing with their money. Using open banking as an opportunity, FIs whose customers share their data with fintechs could have a more detailed view of what happens to their customers’ money. If they see money in non-interest-bearing accounts, FIs could send the customer a personalized message about how that money could perform in a higher-yield account.
Many younger prospective homebuyers have been waiting out mortgage rates in hopes of saving money, contributing to plateaued demand for new homes. However, creative or atypical mortgage products could spur demand. In this challenging economic environment, FIs have an opportunity to gain long-term loyalty by offering products that allow customers to realize their homeownership dreams. These products acknowledge the uniqueness of consumers’ individual financial situations. FIs should move beyond a one-size-fits-all approach and develop a full suite of specialized loan products. FIs can build these products in-house or partner with fintechs and other lenders to get them to market faster.
Now that most financial institutions (FIs) have deployed or piloted genAI, some recurring lessons have emerged. Implementing these lessons learned can help FIs prevent massive losses from failed pilots. Governance helps set expectations, parameters, and metrics before the bulk of the money is spent—helping prevent project failure and disappointment. 79% would prioritize governance if starting AI implementation over. Seventy-one percent of respondents would have engaged stakeholders earlier, involving them in planning meetings. This would help FIs ensure alignment and reduce delays that could arise from misunderstandings and disagreements partway through.\
Early Warning Services, the company behind Zelle and Paze, submitted a five-point plan to US financial regulators to combat fraud. While a multi-sector approach could be a good idea in theory, it may also deflect from each financial player’s responsibility to secure every transaction. If FIs want customers to trust that their money is safe with them, they can’t blame their partners for fraudulent transactions that customers use their mobile banking apps to make. But clearly, the traditional siloed approach to combating fraud isn’t working against sophisticated criminal rings that operate across multiple platforms.
SoFi recently reported that its AI chatbot, Konecta, has helped make significant operational and customer service improvements since its 2023 launch, per Yahoo Finance. Banking customers have been experiencing chatbot fatigue when glitches and errors prevent them from getting meaningful solutions to their problems—or when they can’t reach a human. But the more empathetic, human models could undo some of the negative perception of these bots. By demonstrating tangible benefits, like faster service and fewer dropped chats, SoFi is directly addressing these customer pain points. This approach improves efficiency and builds a foundation of trust—particularly with self-service-leaning Gen Zers.
Gen Zers care deeply about their credit scores—according to one survey, even more than their social media following. That’s because most Gen Zers believe it’s an important marker of their financial health. But Bloomberg recently reported that Gen Z’ credit scores have taken the biggest hit of any age group in 2025. As Gen Zers look to their credit scores as a measure of financial success, rapidly dropping scores may drastically alter their perceptions of their financial health. Paired with delinquencies and rising debt, many Gen Zers may be actively looking for help to turn their finances around.
USAA has topped Investor’s Business Daily’s 2025 “30 Most Trusted Financial Companies” ranking. The financial institution (FI) scored exceptionally well across nearly all trust attributes. This ranking reinforces the importance of not only financial soundness, which respondents ranked consistently as their most important factor influencing trust, but also of developing a deep understanding of your customers. And the work doesn’t stop there—it’s what FIs do with that understanding that matters.
The Trump administration announced on September 15 that a TikTok sale deal has finally been reached with China after months of uncertainty, allowing TikTok to remain operational in the US. That means TikTok’s future in the US isn’t as uncertain as it recently was. FIs that set aside plans to build up their TikTok following or reach target customers via campaigns or finfluencer relationships should now move full steam ahead on TikTok. This is the moment to restart those efforts with a renewed focus on authenticity and education. FIs should create specific content that speaks to Gen Z’s financial realities.
UBS has issued a warning that there is a 93% chance of a US recession this year, per Moneywise. The prediction is based on data such as personal incomes, consumption, industrial production, and employment rates. When consumers feel stressed, they’re more likely to turn to advice that promises to fix their problems quickly. But much advice like this on social media is misleading—or downright dangerous financially. FIs are well positioned to combat misinformation and share more trustworthy advice via social media on navigating economic challenges. Advice could center around specific products.
JPMorgan Chase and Plaid have renewed their data access agreement, resolving a dispute that arose when the bank started charging fintechs for access to customer data, per PYMNTS. The new deal includes a pricing structure but reportedly won't result in new fees for Plaid customers. It’s noteworthy that JPMorgan and Plaid reached an agreement while the Consumer Financial Protection Bureau (CFPB) is still collecting public comments on a new iteration of its open banking rule. The agreement may influence the rule’s final outcome and encourage other financial institutions who are considering similar moves.
In today’s episode, we talk about how stablecoins differ from the crypto hype cycles of the past like bitcoin and NFTs, the risks stablecoins introduce for traditional financial institutions, and from the consumer side, do people actually want or need stablecoin payments. Join the discussion with host and Head of Business Development, Rob Rubin, Senior Analyst, Grace Broadbent, Vice President of Content, Suzy Davidkhanian, and Principal Analyst, Tiffani Montez.