Gen Z redefines trust in financial institutions

Insights from KLA, in partnership with YouGov Profiles, reveal how Gen Z’s expectations are reshaping the financial services industry, with implications for banks and financial brands seeking to earn their trust and long-term loyalty.

Gen Z’s Expectations from financial institutions

Gen Z approaches banking with a heightened need for transparency, flexibility, and social alignment. Financial brands need to rethink traditional marketing and engagement strategies to resonate with this generation’s values and habits.

Innovation in marketing is key as 76% of Gen Z South Africans believe brands need to find new, creative ways to market their products, favouring interactive, technology-driven solutions such as gamified savings apps, digital financial education, and immersive social media engagement.

Trust and meaningful connections matter to Gen Z consumers, with 56% preferring long-term brand relationships over one-time transactions, favouring financial partners that align with their personal goals and social values, such as sustainability and community investment.

Financial caution and changing banking habits

Despite being early adopters of digital banking, Gen Z is financially cautious and selective when it comes to money management.

• 72% of Gen Z consumers say they are more careful with their finances than before, actively seeking low-fee banking options and budget management tools.

• 71% of Gen Z prefer having multiple bank accounts, using separate accounts for spending, saving, and investing, which signals a demand for seamless integration and financial flexibility.

• 54% of Gen Z South Africans believe banks try to trick them out of their money, and 46% feel that all banks are the same, highlighting a trust deficit that financial institutions must address.

Digital trust and online banking barriers

While Gen Z is digitally fluent, 41% report feeling uncomfortable using online banking, despite its widespread adoption. This signals a gap in user experience and security concerns that financial institutions need to bridge. Only 30% of Gen Z consumers trust banks and financial service providers, highlighting the urgent need for transparency in pricing, fees, and policies.

Real-time notifications, no-hidden-fee policies, and simplified digital banking interfaces can help rebuild trust and encourage financial confidence.

Social proof and the power of influence

Gen Z places high value on peer recommendations and digital validation when selecting financial products and services.

• 70% of Gen Z check online product reviews before making a purchase, suggesting an opportunity for banks to leverage customer testimonials and case studies to build credibility.

• 47% of Gen Z trust influencer endorsements, reinforcing the potential for finance-focused content creators to bridge the knowledge gap and improve banking literacy.

Opportunities for financial institutions to engage Gen Z

To earn the trust and loyalty of these consumers, financial institutions need to align their services with Gen Z’s digital habits, financial needs, and values.

• Prioritise transparency and simplicity by avoiding hidden fees, simplifying financial language, and offering real-time account monitoring.

• Offer technology-driven solutions and invest in AI-powered budgeting tools, interactive financial education, and secure mobile-first platforms.

• Support social responsibility initiatives aligned with Gen Z’s values, such as eco-friendly banking, community investments, and ethical finance options.

• Provide accessible content to improve financial literacy and education through blogs, social media, and interactive tools to help young consumers make informed decisions.

• Showcase authentic customer experiences and financial success stories across social media, to build credibility and drive engagement.

For South Africa’s Gen Z, financial brands are no longer just service providers, they must be partners in financial empowerment. Institutions that prioritise digital innovation, meaningful engagement, and transparency will be best positioned to earn Gen Z’s trust, foster loyalty, and redefine financial relationships for the future.

Methodology

Profiles: Segmentation and media planning tool. YouGov Profiles makes it simple to find and understand the audience that matters most to you. With data collected daily, it gives you the power to build and customise a portrait of your consumers’ entire world with unrivalled granularity. More than 12,500 variables are available in South Africa.

Dataset: 2024–12-29

Population: South African Generation Z aged 12–27 years old with access to the internet

n ~ 1094