The news: 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.

The details: While Gen Zers put 42.4% of their money in a combination of bank accounts and CDs, 26.5% of their savings depreciate as cash or in digital wallets, per the same study. The breakdown is: 

• 13.3% sits in digital wallets.
• 11.3% goes to education and retirement funds.
• 13.4% is in stocks and bonds.
• 13.2% stays in cash.
• 6.3% is cryptocurrency.

Why this matters for banks: 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.