With strong social values – particularly when it comes to climate change, ethics and equality – Gen Z are likely to be attracted to financial institutions clear on their purpose and responsibilities. 

A Fintech Pulse article highlights the importance of everything from mental health-aware language and ethical investment options, to community project support and rewards connected to social causes. But authenticity matters too, as this seemingly sceptical demographic will soon see through corporate social responsibility efforts that are merely a gimmick. 

This presents a huge opportunity for traditional banks with deep-rooted and widely acknowledged values.

The UK’s largest building society, Nationwide, is a stellar example in this respect. Owned by its members, Nationwide has always been known for uncompromisingly focusing on the needs of its customers, rather than shareholders. That means that its purpose-driven stance isn’t simply a brand motto – it underpins the entire existence and operation of this financial institution. 

Vocal and accountable when it comes to its social and public responsibilities, Nationwide is committed to investing in communities. Not only does it give at least 1% of its pre-tax profit to charities. Nationwide’s Fairer Futures initiative is just one example evidencing the brand’s intrinsic dedication to children and their families. 

Recognising that 31% of all UK children live in poverty, the building society has outlined its goal to provide practical and emotional support to 100,000 children, young people and parents experiencing financial hardship. In the run up to Christmas, Nationwide also pledged to match fund any ‘secret santa’ customer donation up to a total of £200,000, in an initiative with Action for Children – the charity driven by love. 

This is not merely a marketing stunt designed to pull at customers’ heartstrings. It feels more like a movement, aligned perfectly with the core purpose and family values of the building society itself.

This will have undoubtedly helped contribute to the acclaim of its ‘NationFried on tour’ campaign too, which saw food trucks turn up at UK universities to serve free breakfasts and merchandise to thousands of hungry students embarking on their next chapter of life, away from home. Collaborating with TV personality Olivia Atwood and viral social media star Joe Baggs, this 140 year old brand dominated freshers week. Admittedly an effort to attract new customers to the perks of its FlexStudent bank account, the initiative continues Nationwide’s commitment to supporting young people during another challenging – yet important – time in their lives.

Reference = https://www.youtube.com/watch?v=5EEnRRHEU-8

More established financial institutions come armed with decades of experience trying to secure the lifetime value of the customer. The need to deepen relationships is therefore not a new challenge for traditional banks – it’s a priority they have worked hard to protect, for years.

So, while the demands of this target market may feel new, and the competitive landscape is constantly changing, the ‘mission’ remains the same. 

Strategies need to evolve too of course, something acknowledged by the historic financial institution, Banca di Asti. 

With 210 branches across northern Italy, and a heritage dating back to 1842, Banca di Asti embarked on a strategic renewal journey to win over Gen Z, back in 2023. The goal was to rejuvenate the brand's perception, overcoming the image of a traditional bank and demonstrating its capacity for innovation and adaptation.

Entrusting TLC with the project from end-to-end, we devised a disruptive and unconventional concept, far removed from typical banking communication, with creativity tailored to this youthful target audience.

Split into two parts, the first phase centred on incentivising the opening of new current accounts. Deep customer listening and a detailed analysis of the purchasing behaviours of this demographic helped TLC design a highly-customised reward solution, based on the pillars of transversality, simplicity, and immediacy.

Thanks to TLC’s extensive rewards experience and global partner network, Banca di Asti was able to offer young current account holders a substantial €300 in credits to spend on a wide range of activities designed for them. This high perceived value of this reward – which would have been impossible to offer with cashback of the same amount – shouts "SBAM!", hence the campaign's name and visual identity.

Credits were delivered in two tranches, to support acquisition and retention efforts, and the results spoke for themselves. The Italian bank saw a 65% increase in new current account openings, with a 96% retention rate. 

Given the success of the first campaign, the second iteration saw TLC analyse all campaign elements to optimise every touchpoint and further consolidate the brand’s presence among the Gen Z demographic. Again, daily current account openings surged by 60% – 16% above the target for the campaign – and work is now underway for project three. 

The case study can be downloaded in full:

Rethinking the approach to compete with neobanks is nothing new, and global marketing leaders will need to stay alert in 2026 and beyond, not least in the face of continually squeezed budgets.

But as so many of the examples here highlight – the desire for emotional connection still matters to this demographic.

One of the biggest blockers to delivering powerful emotional benefits is often the perceived difficulty of personalising rewards at scale. Yet armed with rich spending data, banks have a goldmine of insights into the experiences that will be most useful, valuable, and memorable for their customers.

TLC’s long-standing advice when it comes to competing in disruptive markets, remains especially true for global financial services brands. To compete with the ever-agile neobanks, traditional institutions must implement a holistic loyalty strategy that appeals to every part of the customer – the head, the pocket, and the heart. We call this the Loyalty Benefits Trinity, and as the above insights show, this is just as applicable when attracting, engaging with, and retaining Gen Z customers: 

• Rational benefits: Target the head, e.g. through practical yet accessible advisory services that educate and empower customers, simplifying their financial life while improving their financial literacy.
  
  
  
• Financial benefits: Appeal to the pocket, e.g. with competitive interest rates, or rewards that genuinely offset financial pressures.
  
  
• Emotional benefits: Capture the heart through tailored, personalised rewards that demonstrate understanding of their life stage, interests, and the social issues that matter to them. This is so often the true differentiating factor.