Why Gen Z & Millennials Trust Big Brands Over Traditional Banks

By Ben Malena

February 17, 2025

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For decades, traditional banks and financial institutions (FIs) have been the pillars of financial trust. However, a major shift is happening—Gen Z and Millennials are increasingly turning to big brands like Apple, Google, and Amazon for their financial services. Why? Because these companies understand their needs, offer seamless digital experiences, and provide services that fit into their daily lives. With the rise of fintech and embedded finance, the way younger generations interact with money is undergoing a transformation.

The Trust Shift: From Banks to Brands

1. Digital-First Mindset – Tech-savvy generations expect financial solutions to be as easy to use as their favorite apps. Brands like Apple and Google offer seamless, intuitive platforms that integrate finance effortlessly. Traditional banks, often bogged down by outdated systems, struggle to keep pace with this demand for instant and frictionless services.
2. Personalized Experiences – Big tech and fintech brands use AI and data analytics to tailor financial products, something traditional banks often struggle with due to legacy systems. Personalized financial insights, automatic savings features, and spending analysis tools make financial management more interactive and engaging.
3. Transparency & Accessibility – Younger generations demand clear, fair, and fee-free financial services. They favor brands that communicate openly and provide instant customer support. Hidden fees, complex banking terms, and long processing times deter young consumers from choosing traditional banks.
4. Brand Loyalty & Ecosystem Appeal – Apple users trust Apple Pay. Amazon shoppers trust Amazon Pay. These companies have already built loyalty, making it easier to introduce financial products that feel like natural extensions. This ecosystem-driven approach ensures that users remain within their preferred digital environment, avoiding the need to engage with traditional banking systems.
5. Social & Ethical Alignment – Many Gen Z and Millennials choose financial services based on brand values, such as sustainability and social responsibility. They see big brands making efforts to align with their values, while traditional banks often lag behind. Issues like ethical investing, carbon footprint reduction, and social responsibility initiatives play a significant role in financial decision-making.
6. Innovative Financial Products – Big brands continuously launch new financial products, from buy-now-pay-later (BNPL) services to digital wallets and cryptocurrency support. These innovations align with the spending habits and financial behaviors of younger consumers, offering them more flexibility and control over their finances.

What This Means for Traditional FIs

• Embrace Embedded Finance – Banks need to integrate services into digital ecosystems where customers already spend time. Partnering with fintech firms or offering API-driven services can help maintain relevance.
• Prioritize UX & Innovation – Seamless, mobile-first experiences are no longer optional. The ability to open accounts in minutes, automate transactions, and receive real-time insights is now expected.
• Leverage Data for Personalization – Competing with big brands means using data to offer hyper-personalized financial products. AI-driven recommendations and predictive analytics can enhance user engagement.
• Strengthen Trust Through Transparency – Open pricing, clear communication, and ethical practices can win back younger customers. Providing educational resources and financial literacy tools can also build stronger relationships with digital-native generations.
• Expand Payment and Credit Options – Offering digital-first credit solutions, flexible payment plans, and integrating with modern payment platforms can help traditional banks remain competitive.

Traditional banks are at a crossroads. To stay relevant, they must adapt to changing expectations or risk losing an entire generation to tech-driven financial solutions. The financial landscape is shifting rapidly, and those who fail to innovate will be left behind.

What do you think? Would you trust Apple or Amazon with your financial future over a traditional bank?

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