The Problem: Gen Z Is Slipping Away From Community Institutions

Banks and credit unions have spent years chasing Gen Z. They’ve rebuilt mobile apps, polished their Instagram presence, and borrowed design cues from fintechs. And yet the numbers keep moving in the wrong direction.

According to ProSight’s banking outlook research, community banks and credit unions held about one in five Gen Z primary relationships in 2023. By 2025, that had dropped to fewer than one in ten. Meanwhile, the opportunity keeps growing: most of Gen Z is now old enough to open accounts on their own, and the generation is estimated to open roughly 4 million new bank accounts every year.

Here’s the twist: Gen Z hasn’t abandoned traditional banking. About 80% still keep their primary account with a traditional bank or credit union, even while they experiment with fintech apps and digital wallets. But that loyalty is thin. Raisin’s 2026 consumer research found that 24% of Gen Z treat a payment app like Venmo or Cash App as their primary financial institution, and 10% use a neobank, both well above the national average. SavvyMoney reports that one in five Gen Z consumers expect to switch their primary institution within the next six months.

The Overlooked Channel: Gen X Parents

Most community banks and credit unions already have something fintechs and neobanks would pay a fortune for: deep, trusted relationships with Gen X households. Born roughly between 1965 and 1980, Gen X is now in its mid-40s to early 60s. They are the parents of most of Gen Z, and in many households they remain the financial safety net.

Lee Wetherington, senior director of corporate strategy at Jack Henry, made this point in a recent interview with The Financial Brand: many institutions have strong bonds with Gen X but struggle to recreate that connection with younger customers. His argument is that a Gen X-centered strategy does double duty. It helps marketers understand Gen Z, and it gives them a route to reach Gen Z.

The data behind the parent pipeline

The financial ties between these generations are strong and well documented:

Bank of America’s 2026 Better Money Habits study adds an important nuance. Overall, 34% of Gen Z say they receive financial help from family, down from 46% in 2024. But the dependency varies sharply by age, and that tells you exactly when the window is open:

What Gen X Reveals About Gen Z

At first glance, these generations look like opposites. Gen X grew up as the “latchkey” generation, raised amid rising dual-income and single-parent households and shaped by stagflation, recessions, and the 2008 financial crisis. Gen Z grew up with more hands-on parenting, but faces its own pressures: high housing costs, sticky inflation, and a tough entry-level job market. Deloitte’s 2026 global survey found that 55% of Gen Z say their finances are delaying major life decisions.

Dig deeper, though, and the two generations share more than you’d expect.

Authenticity is the shared language

Wetherington describes Gen X as allergic to generic marketing, a trait shaped by decades of economic upheaval and broken institutional promises. He sees the same instinct in Gen Z, who want real people giving real, practical advice that improves their financial lives. The takeaway for marketers: every message should be useful, credible, and specific. If it could have come from any bank, it won’t land with either generation.

Both generations respond to relevance over promotion. Instead of pushing another checking account, start with the real situation: a college freshman who needs a budget, a 24-year-old moving out, a parent quietly covering rent. Jack Henry’s own Gen Z research makes a similar case: growth comes from understanding how young people earn and manage money, then matching services to their milestones, from a first paycheck to a first business.

Digital by default, human when it counts

Gen Z runs day-to-day money on their phones. Roughly 69% use their bank’s mobile app every week. But they still want people for the big moments. Their top expectations of a financial institution include access to human support, alongside a seamless mobile experience and budgeting tools. The gap is in delivery: only 42% of Gen Z recall getting personalized financial guidance during a branch visit. Community institutions are built for exactly this kind of guidance. They just need to deliver it deliberately.

Where to Reach Both Generations at Once

You don’t need two separate media plans. The channel overlap between Gen X and Gen Z is bigger than most marketers assume:

• YouTube (long and short form): The single best shared channel. Build a series of short explainers on real family money questions.
• Instagram Reels: Strong with Gen Z and growing with Gen X. Repurpose YouTube Shorts here.
• Facebook: Reach the Gen X parent directly with content framed around helping their kids.
• Email and in-app messaging: Your cheapest channel to existing Gen X customers. Use it to introduce youth and family products.
• Podcasts and local media: Gen X still listens. Sponsor or host segments on financial parenting.

The Family Banking Playbook: 7 Moves to Make Now

Handing down a bank relationship used to be automatic. Kids opened accounts where their parents banked and often stayed for life. That pattern has broken down, and young consumers now spread their money across many providers. The goal isn’t to restore the old model; it’s to rebuild it deliberately.

1. Start with the Gen X customers you already have

   Rather than spending heavily on broad awareness campaigns to outshout neobanks, segment your existing checking base for households with children aged roughly 12–28. These customers already trust you, and they’re the ones funding many of their kids’ financial lives.

   Try this: Flag accounts with recurring transfers to other individuals, tuition payments, or youth-account history, then run a targeted “banking for your family” campaign.

2. Build “family banking structures,” not just youth accounts

   Design products around the money that already moves between parents and kids. For Gen X parents supporting young adults, that means co-managed accounts that make it easy to send money, see activity, and help with expenses, without taking away the young adult’s independence.

   Try this: Offer linked parent-child accounts with instant transfers, shared savings goals, and adjustable visibility settings.

3. Capture money flows that currently happen outside your walls

   Allowances, “loans” to kids, rent help, and emergency transfers often happen through Venmo, Zelle, or cash. A bank-hosted youth platform brings that activity inside the relationship with features such as allowance automation, spending controls, and even parent-to-child loans with interest, which make great teaching tools.

4. Embed financial education in the product

   With only 14% of Gen Z confident in their money knowledge, education is a real differentiator. Put it where the money is: savings challenges, milestone badges, and short lessons triggered by real behavior like a first paycheck or first overdraft.

   Try this: Create “money conversation starters” parents can use, delivered in-app and by email.

5. Engineer the handoff

   This is where most institutions lose. When parental involvement ends, the young adult re-evaluates everything. Plan for that moment with automatic account graduation, a welcome-to-independence offer, and a real person reaching out, not just a system notice.

6. Spot the side hustle early

   Gen Z leads every generation in side hustles, and 74% of Gen Z non-owners say they hope to own a business someday. A young customer depositing platform payouts or Etsy income today may be tomorrow’s small business client. Watch for that activity and meet it with simple business accounts, invoicing tools, and advice.

7. Tell real stories with real people

   Swap stock photos and slogans for your own staff, members, and local families. Short videos of a loan officer explaining credit to a college student, or a parent and teen setting up a first account, beat polished ads with both generations.

Design for every stage of Gen Z

Gen Z now spans roughly ages 14 to 29, from high schoolers to adults nearing 30. One campaign won’t fit all of them. Map your offers to their life stage:

The Bigger Prize: The Great Wealth Transfer

There’s a long-term reason to invest in Gen X households now. Cerulli Associates estimates roughly $124 trillion will change hands by 2048, with Gen X set to receive around $39 trillion. Gen X is first in line, expected to inherit roughly $14 trillion over the next decade alone. Many Gen X parents also say they would rather help their kids now than wait to pass down money later.

Common Mistakes to Avoid

How to Measure Success

Frequently Asked Questions