The news: A recent PYMNTS article summarizes the “pressure test” between digital and traditional financial institutions (FIs) as they vie for Gen Z’s business. Here are the key differences between their strategies:

Digital banks dominate in digital offerings: According to recent PYMNTS research, 54% of Gen Zers rely primarily on nontraditional financial service providers, prioritizing real-time payouts and companies aligning with their social values. This is up slightly from our January findings, which showed most new account openings among Gen Zers in 2024 were with fintechs.

But traditional FIs aren’t out of the game: They’re strategically evolving their offerings to appeal to this crucial demographic.