Millennial and Gen Z consumers prefer brands over banks, survey says

A new survey by Vodeno and Aion Bank has revealed that Gen Z and millennial consumers prefer brands over banks for their banking needs.

Recent research conducted by Vodeno/Aion Bank has highlighted a notable shift among Gen Z and millennial consumers towards relying on brands for their banking requirements. The increasing availability of Buy Now, Pay Later (BNPL) services and integrated banking solutions has emerged as a significant driver of brand loyalty. 

The European Banking-as-a-Service (BaaS) provider initiated an independent survey involving 3,007 European consumers from the United Kingdom, Belgium, and Germany. The study found that 52% of individuals aged 25 to 34 believe that utilising financial products offered by their favourite brands is more convenient compared to traditional retail banking. 

Furthermore, the same percentage (52%) expressed the view that brands deliver financial products more customised to their specific needs when compared to conventional financial institutions. Simultaneously, 51% of respondents within the 25-34 age group opined that brands are enhancing banking accessibility.

The importance of convenience

The research also unveiled that 25% of those aged 25-34 cited convenience as their primary motive for choosing to bank with their favoured brands, a figure that surged to 45% among those aged 35-44. Within the 25-34 age category, 35% disclosed that they have utilised embedded banking products due to the favourable terms offered by the brand. 

According to the official release, given the current economic climate, 37% of European consumers, irrespective of age, expressed a higher inclination toward brands providing BNPL and flexible payment alternatives, mainly due to the elevated cost of living. This inclination was most pronounced among those aged 25-34 (54%) and 16-24 (44%). 

In addition, 50% of respondents aged 25-34 confirmed their loyalty to brands offering financial benefits and incentives such as BNPL and cashback. The youngest demographic surveyed also exhibited a strong inclination to use a brand's loyalty card for purchases, particularly if it included BNPL, with 65% of those aged 25-34 and 53% within the 16-24 age group expressing this preference. 

Regarding shopping frequency with their preferred brands, 19% of respondents reported shopping monthly, while an additional 16% stated that they shopped once every two or three weeks. Notably, among those who had used a brand's embedded banking product, 36% revealed that they returned to the brand's app or website between three and five times each month, with this figure rising to 43% among the 25-34 age group.