Understanding Gen Z Banking Preferences: What Financial Institutions Can Do to Stay Relevant

With Gen Z gaining financial independence, banks and credit unions face a generational inflection point. These digital natives—born between 1996 and 2012—bring new expectations around convenience, transparency, and digital experiences that challenge how financial institutions (FIs) operate. And while mobile dominates, Gen Z still relies heavily on ATMs as a primary self-service channel—making ATM modernization essential to delivering a real-time, digital-first experience. 

The Gen Z Banking Mindset 

According to CoinLaw’s study on Millennial vs. Gen Z banking preferences, Gen Z overwhelmingly prefers mobile and digital banking, has limited trust in traditional financial brands, and is quick to switch institutions that don’t meet their expectations. For FIs, this means modernization can’t be limited to front-end tools—Gen Z expects every channel to deliver the same speed, clarity, and reliability. This includes optimizing mobile, online, branch, and ATM channels to work together seamlessly. 

Mobile First, Branch Last

Nearly 92% of Gen Z consumers prefer to use mobile banking apps over visiting a branch, and they log in to mobile banking apps 52% more often than Millennials. For Gen Z, banking is something to do on-demand, not in person. In fact, it’s not uncommon for a Gen Z customer to check their balance multiple times per day—often before small purchases—illustrating how deeply real-time visibility shapes their financial habits.  

Yet even in a mobile-first world, Gen Z still relies heavily on ATMs (53% prefer using ATMs over tellers), making ATM modernization a critical part of a digital-first experience. Branches haven’t disappeared though; they’ve simply taken on a new role—as convenient, self-service extensions of the digital experience. 

For FIs, that means maintaining physical infrastructure while ensuring the overall experience feels as seamless as mobile. A
clunky in-branch or ATM experience undercuts the mobile one. Gen Z expects a consistent, real-time experience whether they’re withdrawing cash, depositing a check, transferring funds, or checking balances. When these experiences differ across channels, trust erodes quickly. 

Low Trust, High Expectations

Only 14% of Gen Z respondents in the CoinLaw study said they “trust banks a lot,” compared with nearly 30% of Millennials. Growing up amid the financial crisis and the fintech boom, Gen Z is more likely to trust a technology brand than a bank. Gen Z doesn’t just hand out trust; banks have to earn it, consistently. 

For FIs, that means delivering friction-free processes and communicating clearly at every step. From instant transaction notifications to faster funds availability, reliability builds confidence. Consistency across mobile, online, and ATM channels is what earns long-term loyalty. 

Value Conscious and Quick to Switch

Gen Z approaches finances pragmatically: 80% say they actively seek the lowest-cost financial services, and 61% have switched banks in the past two years. Loyalty doesn’t come from tenure or geography anymore; it’s based on value, simplicity, and perceived fairness. 

Institutions that streamline back-office operations, reduce fees, and eliminate unnecessary friction will be the ones that retain this generation. Every operational inefficiency that increases costs or delays processing is a potential reason for Gen Z to leave. To Gen Z, repeated delays or extra steps signal a lack of responsiveness. 

The Real-Time Imperative

Nearly 70% of Gen Z want personalized, real-time spending updates, and more than 75% have notifications enabled in their banking apps. They expect everything—account balances, deposits, payment confirmations—to update instantly. 

For FIs, this expectation demands real-time data synchronization across channels. If a Gen Z customer deposits funds through one channel and doesn’t see it reflected immediately in another, that delay damages confidence. This includes ATM deposits—Gen Z expects an ATM deposit to post just as quickly and reliably as a mobile check, making ATM deposit automation a foundational modernization priority. 

Bridging Physical and Digital Channels Through Modern ATMs 

Despite the dominance of mobile, Gen Z still values tangible ways to interact with their money, particularly when those experiences mirror digital convenience. In fact, over half of Gen Z customers prefer ATMs over tellers for deposits and withdrawals. The appeal lies in control: they can complete transactions independently, anytime. 

To stay relevant, FIs must view ATMs and branches not as relics of traditional banking but as digital access points. When properly integrated into a modern ecosystem, these channels can complement mobile and online platforms, offering customers flexibility and reinforcing the brand’s commitment to convenience. Modernizing ATMs with image-enabled, real-time deposit capabilities is one of the fastest ways to deliver a unified digital-first experience without major infrastructure overhauls. 

The institutions leading the way with Gen Z are blending digital and physical seamlessly: 

1. Self-service kiosks that link directly to mobile profiles
2. Smart ATMs that handle deposits instantly and provide immediate confirmation
3. Branch environments designed for advisory conversations rather than transactions 

These strategies send a simple but powerful message: we respect your time, and we meet you where you are.  

Six Strategic Moves to Win Gen Z Across Mobile and ATM Channels

To earn Gen Z’s trust and loyalty, financial institutions need more than digital tools—they need experiences designed for speed, clarity, and control. The following strategies outline how banks and credit unions can modernize operations and align with what matters most to this generation. 

1. Redesign the Experience Around Speed: Whether online, in-app, or in person, every interaction should feel instantaneous. Streamline approvals, reduce manual steps, and communicate updates in real time. 
2. Make Transparency a Feature: Fees, timelines, and terms should be clear. Hidden costs or long settlement periods break trust fast, and Gen Z reads those signals as red flags, not fine print. 
3. Integrate, Don’t Add On: Instead of layering new technology over legacy systems, integrate modern workflows that connect data across mobile, branch, and ATM channels. A truly unified experience builds loyalty. 
4. Empower Self-Service Banking: Give customers control. From account opening to deposits, self-service tools signal digital maturity and independence—two things Gen Z values most. 
5. Upgrade Self-Service Infrastructure: Modern ATMs that support fast, image-based deposits create the 24/7 control that Gen Z values. This also reduces operational load and elevates the consistency of the overall experience. 
6. Lead With Purpose and Value: Gen Z cares about fairness, community, and transparency. Build credibility by aligning operational efficiency with customer benefits, like lower fees or faster access to funds. 

Why Financial Institution Modernization Matters Now 

Across the industry, FIs are discovering that modernization doesn’t mean starting from scratch. It’s about upgrading the systems that already anchor customer trust, like mobile banking apps and ATMs, so they deliver a digital-first, seamless experience. 

As CoinLaw’s study notes, “Millennials and Gen Z are redefining what banking looks like—not just in technology, but in expectations.” The difference is that Gen Z doesn’t separate the physical from the digital. Gen Z simply expects every interaction to feel modern. 

For FIs, that means investing in both infrastructure and experience: mobile interfaces that are fast and intuitive, back-office systems that move data in real time, and physical access points that reflect digital efficiency. Every channel should work the same way—fast, clear, and connected. Those that strike the right balance will attract a generation that values autonomy but still wants human connection. 

Trust and Convenience for Gen Z

Winning Gen Z isn’t about inventing a new kind of financial institution—it’s about delivering a banking experience that feels effortless, honest, and instant. FIs achieving that balance through unified systems, transparent communication, and self-service banking access will build trust where it matters most: in everyday interactions. 

For FIs seeking to modernize without losing their physical edge, solutions like CheckAlt’s ATM Capture offer a practical way forward. ATM Capture modernizes your existing ATM network with image-based deposits, faster posting through ATM deposit automation, and built-in risk controls to meet Gen Z’s expectations without adding operational burden. Upgrading ATMs with ATM Capture is one of the fastest, lowest-disruption steps an FI can take to deliver the kind of seamless, always-on experience Gen Z already expects. 

At CheckAlt, we help FIs modernize physical channels to deliver digital-first payment experiences. Get in touch with us today and discover how we can help you ensure your ATMs have the deposit automation capabilities they need. While you’re at it, be sure to follow us on LinkedIn and subscribe to CheckAlt Connect, our monthly email newsletter, to keep on top of the latest in payments.