ATMIA 26th Annual US Conference
Crafting the Gen Z bank branch
If banks want to draw Gen Z customers into the branch, they need to adopt the Apple store model.
March 7, 2025 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator
Everyone wants a slice of the Gen Z pie. This certainly includes banks and many are changing branches to accommodate Gen Z patrons. The focus is on delivering more self-service devices to mobile integration to personalized experiences.
That's because Gen Z are social natives first and foremost, according to Sameer Jain, chief product officer at Edge One. Jain discussed how bank branches can develop a successful Gen Z strategy during a session at the ATMIA conference held in Orlando Feb. 5 to 7.
Jain said the Gen Z generation is highly motivated by how they are "seen on social media platforms" and they have a certain "intimacy" with those platforms beyond other generations.
For example, Gen Z are deeply concerned with how they are seen or perceived on social media, more so than even millennials.
He identified five ways Gen Z consumers are distinguished from the other generations:
- Experience-centric (they want experience first).
- Instant gratification.
- Insights drive.
- Self-service first(they want a self-service experience without a human involved).
- Price-resilient(they are willing to spend more for "value and differentiation").
When it comes to banks, Baby Boomers typically want to be able to contact a banker in person and require a branch in their community. Gen Z on the other hand want primarily to contact the bank through text, chat or social media, and this includes robots. They also want to be able to easily access banking services online or on social media.
However, many bank branches are not set up to handle this generation or their values. Jain said the typical branch's business consists of 70% transactions and 30% customer acquisition. In other words, it is focused on more basic banking tasks.
Instead, they should shift their focus to 50% engaging/branding and showcasing, 40% customer acquisition and 10% transactions.
He pointed to the Apple store as an example of a physical location that primarily acts as a experiential showcase center, rather than a transaction center.
"Branches have to become Apple stores," Jain said.
So how do branches make this transition? Jain identified four key ways to make the transition.
- Modernized branch spaces. This includes a "vibrant and casual" space that utilizes digital signage and creates a coffee shop like space.
- Personalized interactions: Utilizing financial advisors, career advice, kiosks and a quick service desk to meet customer needs quickly.
- Technology first: Use innovative features like VR experiences, robots, gamification and more.
- Community focus: Chairty events, green energy initiatives, networking and young professional clubs.
In a casual environment, Jain said banks can more easily educate Gen Z consumers.
"How you create an experience is super important and that importance will only grow over time," he said.
In order to accomplish these goals, banks need to have a sturdy digital presence. For that, Jain said banks need to embrace fintech partnerships to bring those technologies into the branch.
Banks can do this via four ways:
- Identify areas of collaboration with fintechs.
- Adopt open banking through fintech APIs.
- Deliver personalized services.
- Develop a culture that celebrates a "collaborative synergy."
By adopting these elements, Jain argues that banks can create branches that appeal to Gen Z and stay relevant in the future.
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