Gen Z isn’t motivated by the identical elements as their mother and father, and loyalty applications must mirror the world they’ve grown up in. This technology is used to personalization at each flip: playlists tailor-made to their temper, purchasing solutions based mostly on their habits, and social feeds that mirror their pursuits.
When all the things else of their life feels custom-built, generic rewards from their monetary establishment of alternative fall flat. Knowledge from a survey that CORA Loyalty performed with The Harris Ballot highlights the disconnect.
When Gen Z chooses which bank card to make use of at checkout, rewards matter almost as a lot as comfort; 40% say loyalty applications affect their determination, simply behind the 41% who prioritize the cardboard that’s most generally accepted (CORA/Harris Ballot, 2024). This can be a robust sign that rewards nonetheless carry weight for youthful customers, however provided that they’re significant.
Rewards maintain completely different meanings throughout generations. Whereas older generations are primarily drawn to tangible advantages like factors, miles, and reductions, Gen Z is on the lookout for extra personalised, versatile, and lifestyle-aligned perks. For instance, fee flexibility—like the flexibility to mix factors and money for a single buy—appeals to 38% of Gen Z, in comparison with simply 14% of Boomers (CORA/Harris Ballot, 2024).
They’re additionally motivated by gamification and purpose-driven engagement that feels interactive and aligned with their values. Elevated experiences like VIP live performance entry, resort upgrades, and status-based perks reminiscent of airport lounge entry resonate extra with Gen Z than with older teams.
Consumer expertise issues as a lot because the rewards themselves. When contemplating a brand new bank card, Gen Z is extra doubtless than older generations to weigh person expertise (40%) together with conventional elements like rates of interest (46%) or charges (38%) (CORA/Harris Ballot, 2025). For them, a seamless, intuitive, and mobile-first interface isn’t a bonus however an expectation that shapes their notion of all the model.
This digital first technology additionally turns closely to social media for monetary steering: analysis from PYMNTS exhibits 79% of Gen Z and millennials search monetary recommendation by social platforms, elevating expectations for equally refined banking interfaces (PYMNTS, 2024).
Regardless of these alerts, many monetary establishments both don’t supply loyalty applications or depend on outdated fashions constructed for older customers, like generic cashback. To successfully have interaction Gen Z, monetary establishments ought to supply versatile rewards that transcend conventional cashback to incorporate distinctive experiences, digital reductions, and hybrid fee choices that mix factors and money.
They need to prioritize seamless, mobile-first person experiences with rewards which might be straightforward to entry and redeem. Moreover, incorporating monetary well being instruments reminiscent of credit score monitoring, invoice evaluation, and personalised spending insights can present significant assist.
The stakes are excessive: analysis from the Nationwide Endowment for Monetary Schooling exhibits almost 8 in 10 college students say monetary stress harms their psychological well being (NEFE, 2024), making monetary wellness instruments inside loyalty applications not simply most well-liked however probably important. Lastly, recognizing and rewarding standing by unique perks like premium buyer assist or VIP entry will resonate strongly with youthful customers.
Some monetary establishments are already experimenting with loyalty approaches that transcend transactions. A CORA Loyalty consumer provides teen accounts with monetary training parts designed to assist younger individuals develop wholesome cash habits, recognizing that investing in clients’ monetary literacy builds deeper, longer-term loyalty.
Equally, Revolut’s loyalty ecosystem consists of way of life perks like airport lounge entry, cashback on journey bookings, and fee-free foreign money trade, aligning rewards with Gen Z’s love of journey and international experiences.
When effectively executed, loyalty applications open the door to extra direct and significant interactions with Gen Z clients, lots of whom are navigating main life firsts, from opening their first debit or bank card to managing residing bills, shopping for a automobile, or paying for school.
Not like earlier generations who confronted extra steady financial situations, a current Financial institution of America research discovered that 69% of Gen Z cite inflation and price of residing as their high monetary considerations, whereas 46% dwell paycheck to paycheck (Financial institution of America, 2024). This financial stress makes loyalty applications that assist them stretch their budgets or ease day by day bills much more invaluable.
Efficient applications can improve share of pockets, transaction frequency, and general spending; for Gen Z, additionally they supply essential assist throughout seasons of change that can result in long-term model loyalty.
At their peak, these applications additionally give monetary establishments permission to ask for extra from their clients, whether or not it’s knowledge sharing, deeper product engagement, or turning into their main monetary associate. In addition they function highly effective suggestions instruments, offering insights into Gen Z’s distinctive preferences and behaviours that may inform broader technique, from product growth to advertising and marketing.
Monetary establishments don’t must discard their current loyalty frameworks to have interaction Gen Z, however they need to evolve them. Partnering with specialised loyalty software program suppliers like CORA Loyalty helps establishments faucet into this rising and worthwhile market by devoted experience and fashionable expertise.
These suppliers ship price financial savings, steady updates, and versatile, totally managed applications that may scale and adapt to future generations, accelerating transformation whereas delivering a contemporary expertise that prioritizes innovation and development.
Gen Z could also be early of their monetary journeys, however they’re already shaping habits and preferences that can affect their banking relationships for many years. This technology is fast to check, change, and share their experiences in actual time, making loyalty applications both a real aggressive benefit or a missed alternative.
Monetary establishments that perceive and meet their expectations stand to construct lasting connections and stay related effectively into the long run.
In regards to the Creator
Beth McCoy is president of RewardOps, a Toronto-based SaaS engagement platform serving purchasers in North America and a part of CORA Loyalty since 2020. She leads the corporate’s technique, tradition, and efficiency, whereas additionally overseeing Factors at Work, Carlson Advertising and marketing Options, and the unified model as president of CORA Loyalty.
With over twenty years within the loyalty and airline industries, Beth focuses on creating end-to-end loyalty options that drive top-line development. She has launched and scaled two loyalty startups and labored with main Canadian and North American manufacturers, together with TD, Air Canada, RBC, Petro Canada, and US Financial institution.
