Technology Trends to Attract Younger Generations


Heather Reed |

Understanding Purchasing Behaviors and Preferred Payment Methods

Millennials and Gen Z collectively wield a staggering $350 Billion in purchasing and spending power in the U.S. alone. Tapping into this potential is a game-changer and can lead to significant boosts in account balances and non-interest income.

Community banks and credit unions face stiff competition today and must embrace digital capabilities to remain competitive in their market. This need is especially pressing when trying to attract tech-savvy consumers and the younger generation ¾ your account holders for tomorrow.

Millennials and Gen Z, two of the largest living generations, will comprise 72% of the global workforce by 2029. As digital natives, Millennials and Gen Z have high expectations for availability and convenience. Understanding what types of deposit accounts, digital technology, and loan offers will appeal to these generations is essential for staying relevant in the long term.

So, what is the key to attracting these younger generations? Embracing innovative technologies

Contactless Payments

The pandemic not only made contactless payments essential but also accelerated their widespread adoption. By 2027, $4.7 trillion (about $14,000 per person in the U.S.) will be transacted through contactless methods. This shift is not just a fleeting trend; it signifies a profound transformation in financial transactions. Over 60% of Zoomers and 51% of Millennials already use digital wallets.

Recommendation: This evolution encompasses more than just tap-to-pay and digital wallets; it also integrates peer-to-peer payment platforms like PayPal, Zelle, Cash App, and Venmo. How community FIs handle payments must fundamentally change in order to keep up with the growing demand for faster, more convenient solutions.

Digital Applications and Seamless Technology

Online giants like Chime, Ally, and Discover Bank have solid mobile banking applications. 71% of consumers prefer to manage their accounts through a mobile app or computer. For younger consumers, seamlessly integrated digital capabilities are a top priority.

The good news is that 75% of Millennials would switch financial institutions for a better mobile banking experience. They expect clean, easy-to-navigate interfaces requiring minimal effort to accomplish tasks, quick transactions and interactions, minimal loading times, and consistency across devices. As a financial institution with a community focus, show consumers you have considered their modern needs.

Recommendation: Delivering smooth interoperability between legacy systems, apps and services is table stakes. Cater to the lifestyles of today’s account holders by offering conveniences such as tech that simplifies group expenses and payments through integration with apps used for dining, travel, and entertainment. Consider a subscription management solution to help them manage and track their subscriptions and recurring fees. Another way to show more value is by providing financial literacy tips in your mobile banking application.

Adapting Technology to Drive Change

and the top demands of your target audience. Millennials and Gen Z increasingly seek digital data protection and automated personalized financial guidance.

These younger generations value a user-friendly interface and intuitive design, which enhance their banking experience. Just over half of Gen Z show interest in AI-enabled banking services such as AI-driven chatbots and live agents and the ability to conduct face-to-face consultations with your staff representatives through video calls.

Moreover, 63% of Millennials and Gen Z believe technology enables them to manage their finances better, making enhanced digital experiences more imperative than ever. You can support them by integrating budgeting tools to track spending, set goals, and monitor savings, as well as automated savings programs and giving them resources such as articles, videos, and webinars on financial topics.

Recommendation: Leveraging big data and AI can help you expand your offerings and meet consumer expectations for personalized experiences tailored to their unique needs and preferences. Here are three key areas of opportunity:

  • Customized Financial Advice: Provide suggestions based on spending habits, savings goals, and financial behavior.
  • Tailored Products: Promote personalized offers and products that align with individual needs, such as student loans or travel credit cards.
  • Behavioral Insights: Share insights into spending patterns and offer beneficial tips to improve financial health.

For example, predictive analytics can help you offer proactive advice on managing finances, while chatbots and virtual assistants can provide instant support and streamline customer service.


To remain relevant and competitive, you must embrace and adapt to the technological preferences of existing account holders, Millennials, and Gen Z. Today’s consumers demand convenience, availability, and advanced digital capabilities. The financial landscape is evolving rapidly, creating a greater necessity for robust mobile applications.

As the financial needs and preferences of younger generations continue to shape the industry, community FIs that prioritize and perfect these technological trends will secure their place in the future. Embracing innovation and adapting to digital transformation is crucial to meet the demands of the next generation of account holders and thrive in an increasingly competitive market.

As digital transformation continues to sweep the industry, those proactively evaluating and upgrading their digital offerings will be best positioned to retain a competitive edge—those who wait to adapt risk being left behind in an increasingly digital and consumer-centric marketplace.

To learn more about modernizing your digital offerings, creating a successful digital transformation plan, or how to initiate an evaluation, watch our latest webinar, Technology Roadmap: Top Considerations when Evaluating Technology.”

ADVANTAGE provides community banks and credit unions with evaluating your important vendor service contracts and more. Our team helps with negotiating a better rate, securing more favorable contract terms, and vendor selection to help you deliver the best service to account holders. To learn more, contact your local representative or call us at 800-809-2307.


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