Gen Z Is Redefining What Loyalty Looks Like

Banks and credit unions have always had to adjust to new customer expectations. What makes Gen Z different, according to Carrie Stapp, is not just age. It is the mix of digital habits, economic uncertainty, and AI-enabled behavior reshaping how younger consumers look for financial help, decide what to trust, and judge whether a financial institution still fits their lives. 

That was a central theme in a sponsored ProSight Banking Strategies Podcast conversation with Stapp, vice president of marketing at Primax. Her message was clear: institutions that want to stay relevant cannot treat Gen Z as just another version of past generations with a better smartphone. 

A few themes stand out: 

AI is already competing for the advisory role. Stapp says one of the biggest shifts is that younger consumers are “using AI for things like financial planning” on a regular basis. They may not be sitting down with a banker first; instead, they are using prompts to ask AI tools how to move from their current situation to achieving their goals. That changes the competitive picture. Banks are no longer just competing with other financial institutions for attention. They are competing with whatever trusted-looking tool happens to be available in the moment. 

Don’t resist that shift. Stapp says institutions should “not shy away from it and not scoff at it.” Instead, they should recognize where the consumer already is and find ways to bring trusted financial services into that experience. In her view, that makes the role of financial institutions more important, not less, because consumers still need help knowing “which tools they can trust and which ones they can’t.” 

Digital ease is table stakes. Gen Z, Stapp says, wants “apps that are easy,” the ability “to move money easily,” and financial wellness tools that help them see whether they are on track.  Loyalty is shaped by whether the institution feels easy, useful, and present in the moment. 

Products need to fit a lifestyle, not just fill a slot. Stapp says Gen Z is less focused on a traditional sequence of life events and more focused on goals and lifestyle. They want to know: “How do I prepare myself for that? How much is it going to cost? What do I need in order to do that?” 

The takeaway: Stapp’s broader point is that banks need to build from the outside in. Institutions that truly understand their customers are not just growing products. They are aligning strategy, messaging, and digital experience around how people actually live now.