The Gen Z Perception Gap Is Real—And It’s Killing Growth for Community Institutions

Let’s start with this:

Only 1 in 4 Gen Z consumers consider a traditional bank or credit union their Primary Financial Institution.
And yet—half say they’d switch if the experience were better. That’s not just a missed opportunity. That’s a gaping hole in our growth strategy.

This was the core theme of our recent webinar with The Financial Brand: “Culture, Brand & The Gen Z Perception Gap”—and the insights sparked a much-needed conversation. If you missed it, you can catch the full replay here:

Gen Z Doesn’t Think We’re Built for Them

Despite offering most of the features Gen Z wants—Zelle, mobile wallets, early pay, no-fee accounts—many community institutions remain invisible to them. Why? Because Gen Z isn’t just looking for banking services. They’re looking for brand alignment and digital fluency.

We broke this down in the webinar: Gen Z expects radical clarity, in-app intelligence, digital speed, and brand proof—not just access to the same tools everyone else has.

They also want trust—but it has to be earned, not assumed.

What They’re Telling Us (Loud and Clear)
• 62% say mobile UX is the #1 factor in choosing a bank
• 54% trust tech companies more than banks to innovate for them
• 66% use multiple apps to manage their money
• 64% name mobile as their primary banking channel

Bottom line: It’s not a product gap. It’s a brand perception and digital experience gap. That’s the “Perception–Activation Gap” we outlined in the session—and it’s the gap that community banks and credit unions must start closing now.

What It Takes to Close the Gap

During the webinar, we laid out a practical roadmap built on five core shifts:
1. From product-first to purpose-led. Start with why.
2. From features to outcomes. Show proof—not promos.
3. From silos to speed. Move like a modern brand.
4. From mobile-enabled to mobile-first. The branch is in their pocket.
5. From community talk to community impact. Metrics matter.

These aren’t marketing tactics. They’re cultural priorities.

What Happens When You Get It Right?

We shared recent examples—from Gen Z-focused checking products to digital brand extensions—where institutions began to realign their internal culture, modernize their onboarding, and center their brand on outcomes. The result? New momentum with younger audiences. And real traction with future growth segments.

But let’s be clear: this doesn’t happen by accident. It starts with aligning your teams, your message, and your mission—then activating that alignment across your channels and culture.

What’s Next? Start from the Inside Out.

We’re helping financial institutions do just that through customized Brand Workshops designed to align your leadership, marketing, and frontline experience around a shared purpose—and activate it in ways Gen Z can see, feel, and trust.

Want to see what a reimagined brand experience looks like?
Visit rebrandmybank.com Or book a Brand Workshop to put these ideas into action.

Let’s build something Gen Z won’t scroll past.