The Choice-Driven Gen Z
Gen Z is today’s coveted consumer group for B2C companies, and their unique characteristic isn’t merely digital fluency—it’s an insatiable demand for choice. From the coffee they sip in the morning to how they consume entertainment—be it binge-watching series, scrolling through short clips, or tuning into live-streamed gaming—this generation seeks personalized experiences. It’s not just about making a selection; it’s about selecting the extras. Scouring social media reveals viral trends showcasing Gen Z’s desire for indulgence. For instance, they might choose a smoothie packed with creamy almond milk, organic strawberries, avocado, and sea moss or 24K gold-coated chicken wings that command attention on Instagram.
Credit Cards Win With Gen Z
When it comes to paying for trending items, Gen Z frequently opts for credit cards. Despite a plethora of new payment innovations, young consumers are increasingly drawn to the classic card format. By Q4 2023, 84% of credit-active Gen Z consumers in the U.S. held at least one credit card (bankcard), a significant increase from 61% of Millennials at a similar age ten years ago. Many skip starter cards for premium products like American Express Platinum, which comes with a hefty annual fee of $695 per year. As Stephen Squeri, CEO of American Express, noted, Years ago, we aimed to target them with a no-fee product.” Today, Gen Z and Millennials account for 75% of Amex’s new Platinum and Gold consumer accounts.
Banking Customization for Gen Z
The pursuit of choice extends to banking. Fintechs like N26 are leading the charge by offering customizable banking experiences, allowing customers to pick from different plans and payment cards. Meanwhile, many traditional banks still offer rigid, predefined account packages with minimal customization options. For banks to remain relevant, they must embrace flexibility. Instead of assigning consumers to preset categories, banks could let them choose their preferred card type—virtual, standard plastic, or even a premium metal card. Gen Z’s preference for luxury indicates that such options go beyond mere gimmicks; they position as status symbols, enhancing exclusivity.
Customization Isn’t Just Consumer-Centric—It’s Profitable
Beyond consumer appeal, offering customization in banking translates to higher revenues. Studies indicate that personalization can reduce churn and increase engagement, driving revenue uplifts of 10%. Additionally, the average U.S. consumer holds four credit cards. With over half of surveyed Americans stating that card design influences their choice, giving customers an extra” card option could help secure top-of-wallet status. For banks, this is a clear message: If Gen Z demands choice, offering it could be key to staying relevant in the market.
