For South Africa’s Gen Z consumers, trust, transparency, and innovation are non-negotiable when it comes to choosing financial partners. As a digitally savvy and socially conscious generation, Gen Z brings a unique set of expectations to the financial services landscape. They demand meaningful connections with brands, innovative solutions, and clarity in financial dealings—all while navigating their own financial caution and scepticism.

This blog dives into insights from YouGov Profiles to understand how South African Gen Z consumers are shaping the future of banking, offering actionable strategies for financial institutions looking to win their trust and loyalty.

Gen Z’s Expectations of Financial Partners

The Need for Innovative Marketing

Gen Z wants financial brands to go beyond traditional marketing tactics. According to YouGov Profiles, 76% of Gen Z South Africans agree that “brands need to find innovative ways to market themselves and their products.” This generation values creativity and technology-driven solutions. For financial institutions, this means adopting gamified savings apps, interactive educational content, and engaging digital campaigns.

Gen Z also appreciates transparency in advertising, so it’s crucial for brands to focus on honest, relatable messaging that clearly communicates value.

Meaningful Connections Over Transactions

When it comes to building relationships, 56% of Gen Z South Africans prefer a meaningful connection with brands over short-term connections that will fade. This signals an opportunity for financial institutions to move beyond simply offering products and services. Gen Z values brands that align with their personal goals and social values, such as sustainability and community impact. For example, banks could offer programmes that support local businesses or reward environmentally conscious spending habits.

Financial Caution and Awareness Among Gen Z

1. Budget-Conscious Shoppers

With 72% of Gen Z agreeing that they are more careful with their finances than they used to be, this generation approaches money with caution. The rising costs of living and economic uncertainty mean Gen Z is actively looking for low-fee banking solutions and tools to manage their finances effectively.

2. Multiple Banking Accounts for Flexibility

Interestingly, 71% of Gen Z prefer to have more than one bank account. This trend reflects their desire for flexibility and financial independence. Many Gen Z consumers separate their accounts for spending, saving, and investing, highlighting a need for financial partners to provide seamless integration across multiple accounts.

3. Scepticism Toward Financial Institutions

Trust remains a significant challenge for banks with 54% of Gen Z South Africans agreeing that “banks try to trick us out of our money,” and 46% believing that all banks are the same. To overcome this scepticism, financial institutions must focus on transparency in their fees, policies, and practices.

The Role of Trust and Technology

1. Online Banking Comfort Levels

Despite their tech-savvy reputation, 41% of Gen Z report feeling uncomfortable using online banking. This is a surprising insight that points to the importance of user-friendly apps, robust cybersecurity measures, and educational content to help users feel more confident in managing their money digitally.

2. Building Trust with Transparency

Only 30% of Gen Z definitely agree that they trust banks and financial service providers, highlighting a significant trust gap that banks need to address. Clear, simple language in contracts, no-hidden-fee policies, and proactive customer service can go a long way in rebuilding trust and fostering stronger relationships with this generation.

The Influence of Reviews, and Social Proof

1. The Power of Reviews

Gen Z values social proof, with 70%  agreeing that they always check product reviews before buying something. Banks can leverage this behaviour by encouraging customer reviews and testimonials to showcase their credibility.

2. Trusting Influencers and Celebrities

47% of Gen Z trust products recommended by celebrities or influencers. While financial institutions may not traditionally rely on influencers, partnering with relatable, finance-focused content creators can help demystify banking for younger audiences. These influencers can provide valuable tips on budgeting, saving, or using financial products effectively.

Challenges and Opportunities for Financial Institutions

1. Financial Literacy and Accessibility

47% of Gen Z South African’s agree that financial matters confuse them. This creates an opportunity for financial institutions to provide education-focused content, such as blogs, webinars, and budgeting tools, to simplify financial concepts and empower customers to take control of their financial well-being.

2. Differentiation in a Crowded Market

With 46% agreeing that all banks are the same, differentiation becomes critical. Banks can stand out by offering personalised experiences, aligning with social causes, or adopting eco-friendly practices, such as paperless statements or carbon-neutral initiatives.

Actionable Strategies for Banks to Engage Gen Z

1. Transparency and Simplicity

  • Avoid hidden fees and use plain language in all communications.
  • Offer real-time notifications for transactions and spending.

2. Tech-Driven Solutions

  • Invest in intuitive, secure mobile apps with AI-driven insights for budgeting and savings.
  • Use gamification to make financial management more engaging.

3. Social Responsibility

  • Support initiatives that align with Gen Z values, such as sustainability and community development.
  • Provide rewards for eco-conscious spending, such as cashback for supporting local businesses.

4. Educational Campaigns

  • Create content that demystifies financial concepts, from budgeting to credit scores.
  • Host virtual workshops or Q&A sessions with financial experts.

5. Social Proof and Influencer Marketing

  • Showcase customer testimonials and positive reviews.
  • Partner with relatable influencers to promote financial literacy and trust in your brand.

Conclusion

For South Africa’s Gen Z, trust, transparency, and innovation are essential when choosing financial partners. As a generation that values meaningful connections, financial responsibility, and tech-savvy solutions, they expect more from banks than just transactions.

By addressing their scepticism, leveraging technology, and aligning with their values, financial institutions can create lasting relationships with this influential demographic. With thoughtful strategies and a clear focus on transparency, banks can rise to the challenge of meeting Gen Z’s unique expectations.

Methodology

Profiles: Segmentation and media planning tool. YouGov Profiles makes it simple to find and understand the audience that matters most to you. With data collected daily, it gives you the power to build and customise a portrait of your consumers’ entire world with unrivalled granularity. More than 12,500 variables are available in South Africa.

Dataset: 2024-12-29

Population: South African Generation Z aged 12-27 years old with access to the internet, aged 18+

n ~ 1094