Consumers want lower fees, better rates and cash incentives to switch financial institutions as concerns about affordability and economic prospects for the year ahead begin to weigh on their banking decisions.
In the ProSight Banking Outlook: 2026 Trends survey studying consumer trends, 1,000 respondents split evenly among Generation Z, Millennials, Generation X and Boomer+ cited inflation, the high cost of housing and layoffs among the factors influencing their perspectives on 2026. While most of the Boomer+ segment expects little to change in its financial condition in the next six months, optimism among younger consumers declined in this year’s study (Gen Z –8%; Millennials –18%; Gen X –10%).
Boomer+ weren’t so sure, though, about preserving the value of their deposits, blaming inflation overwhelmingly for a potential need to dip into savings in the year ahead. Gen X also agreed, with about 85% of both respondent groups citing higher prices as the top threat to their deposits.
Just beginning to build a financial future and with perhaps the smallest cash cushion, Gen Z cited high housing costs (44%) as its top drain on deposits and was the leading cohort citing job loss (37%) for lower deposits.
Despite this, Gen Z are perhaps the most successful at adding deposits among respondents, or at least the most optimistic about their savings potential. More than half (55%) said they expect to increase deposits in the next six months, well ahead of older consumers, with Millennials at 38%, Gen X at 29% and Boomer+ at 26%.
When asked if they planned to give all their future deposit business to their primary financial institution (PFI), nearly half (48%) of Boomer+ indicated they would, followed by 46% of Gen X, 41% of Millennials and 40% of Gen Z.
Financial benefits are the top way to jar them loose from existing banking relationships. Again this year, low fees and the best rates were the top two reasons consumers picked for choosing a new primary financial institution. Cash incentives/rewards ranked third for younger Gen Z and Millennials, while older Gen X and Boomer+ picked a convenient branch network.
Younger consumers watching the bottom line
Younger consumers find incentives for opening a deposit account appealing; cash bonuses are a key draw for new checking accounts, which institutions appear to be using more frequently to acquire new customers. In 2024, 16% of Gen Z consumers said they received a cash incentive for opening a deposit account. That percentage more than doubled in 2025 to 34%. For Millennials, the percentage rose from 18% to 29%. For Gen X, the percentage went from 6% to 13%; Boomer+ saw a 1% uptick to 4%.
Younger consumers also accounted for more of the “hot money” chasing yield. The percentage of Gen Z that said it opened a promotional money market account in the last six months more than doubled this year to 12%. For Millennials, the increase was three‑fold to 12%. The percentages were unchanged for Gen X (4%) and Boomer+ (2%). As deposit rates decline with an easing Federal Reserve, finding higher yields in CDs and money market savings accounts will become more challenging.
These customers, while attuned to yield, are also highly sensitive to fees. They pay more in fees than their older counterparts, including penalties for overdrafts, non‑sufficient funds and credit card late charges. Grappling with affordability and still learning healthy financial habits, Gen Z is more likely to switch institutions due to differences in fees; half of all Gen Z consumers were charged a fee from their PFI in the last six months. For Millennials, it was 34%; for Gen X, it was 12%; and for Boomer+, it was only 5%.
Where consumers want to bank
While the industry and consumers are now largely self‑service first, in‑person and physical channels will continue to play important roles in banks’ multi‑layered delivery strategies.
Consumers said they expect to continue using a mix of channels by 2028. The self‑service channels—mobile, online and ATMs—will command 63% of the projected channel traffic. In‑person channels—branch, drive‑up and contact center—will claim 37% of total channel usage. The top self‑service channel will be mobile (29%), followed by online (22%) and ATM (12%).
Mobile experience is a key driver of customer satisfaction. In response to a separate question about whether they would switch institutions for a better mobile experience, more than half of both Gen Z (58%) and Millennials (51%) said they would make the switch. Gen X (28%) and Boomer+ (14%) were much less inclined to switch for a better mobile experience.
Consumers in the 2025 survey said their biggest frustration with digital banking is that the technology changes too much. That concern supplanted 2024’s top customer frustration—concern about fraud and security, which fell to second place in 2025.
The leading physical channels, meanwhile, are expected to be the branch (23%), drive‑up (9%) and contact center (5%).
Consumers of every generation indicated that a branch’s proximity to their home is important. Proximity to home was cited by 45% of Gen Z, 52% of Millennials, 61% of Gen X and 71% of Boomer+. A branch’s proximity to their workplace was considered most important by only 11% of Gen Z, 7% of Millennials and 3% of Gen X. It was not important at all to Boomer+, a generational segment that is largely retired. About a quarter of all respondents indicated that branch proximity to home or work is not important.
Gen Z, which is still planting its roots, is known for making frequent moves. When they do relocate, about a quarter of them (24%) said they changed their PFI. Nineteen percent of Millennials change their PFI when relocating; 21% of Gen X and 20% of Boomer+ change their PFI.
Final thoughts
Attracting new deposits and customers is one piece of a complex business challenge banks face in the year ahead. With the Fed easing rates, acquiring new customers with financial incentives will get more challenging; keeping them will take a multi‑pronged approach. To drive sustainable, profitable, long‑term growth, financial institutions should once again emphasize quality checking accounts to re‑establish the primacy of their institutions as a base for developing stronger multi‑product relationships.
They also should refine their channel offerings through investments in technology and training to improve customer experience at every touchpoint. Though there will be plenty of economic and market headwinds in 2026, we expect the banks that get back to the basics of new customer acquisition and building primary relationships will be best positioned to achieve the growth they expect.
We hope you will find actionable insights in the ProSight Banking Outlook: Consumer Trends 2026 analysis and information to help you and your organization navigate the enormous challenges for both banks and consumers in the year ahead.
John Rountree is Head of Client Engagement at ProSight.
