For Boomers and Gen Xers, banks were the center of financial life. You visited a branch to deposit checks, apply for loans, or speak with a teller. For Gen Z and Millennials, trust looks very different.
Fintech, short for financial technology, refers to companies that apply new technologies to improve financial products and services. What sets them apart is their use of data that was not previously available to banks, from real-time transaction patterns to alternative credit signals. By analyzing this data, fintechs can tailor services, speed up approvals, and reach customers that traditional banks might overlook.
A 2025 Kard Marketing report found that 36 percent of people aged 18 to 24 would choose a fintech service over a traditional bank. With Gen Z and Millennials controlling an estimated $450 billion in spending power, that preference is reshaping the financial landscape.
1. Trust: Experience over history
Older generations saw reputation and history as the foundation of trust. Younger consumers look for something different.
According to Kard, more than three-quarters of younger buyers are more likely to trust a business that offers the payment methods they prefer. For them, confidence comes from a service that works smoothly every time, not from a century-old name carved above a branch door.
2. Convenience: Speed over bureaucracy
Fintechs make everyday money tasks quicker and easier. Kard found that younger shoppers spend significantly more with businesses that keep the process simple. Other research cited in the report shows they are willing to pay up to 9 percent more for that convenience.
Instead of waiting in line at a branch or filling out long forms, younger consumers expect to open accounts in minutes, move money instantly, and get alerts right away. That speed has become part of why they trust fintechs.
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3. Payments: Flexibility over limitations
Fintechs are part of daily spending. Kard’s data shows that buy now pay later services grew 33 percent in 2024, and digital wallets are now common among Gen Z and Millennials. Splitting a bill through an app or tapping a phone at checkout feels natural to them.
Banks may still dominate in traditional products, but fintechs win trust by offering flexible ways to pay, from digital wallets to installment plans, that fit into everyday spending.
4. Innovation: Change over tradition
Younger consumers expect financial services to change quickly. Apps update often, new features appear, and designs evolve. Rather than finding this unsettling, they see it as a sign that the company is keeping up.
Where older customers may worry about too much change, younger ones see constant updates as part of what makes a service dependable.
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5. Data usage: Personalization over cookie-cutter
Kard notes that fintechs rely heavily on data to shape services. That can mean approving credit for people who might not qualify at a traditional bank, or offering budgeting advice based on real spending patterns.
This focus on tailoring services makes fintechs feel responsive and relevant. In contrast, traditional banks can come across as rigid, with one-size-fits-all products.
From teller to tap to pay
Your grandkids are not reckless for choosing fintechs. They are responding to a financial world built around speed, access, and integration with daily life. For them, trust comes from an app that works every time.
The convenience of fintechs is not a reason to abandon traditional banks, especially as they also embrace higher quality app and financial experiences. Rather, it is wise to understand how fintechs can complement them to balance safety with convenience.
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