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You can open accounts with Apple in one minute. You can do it in less than one minute and have an Apple Cash account. You can have it open and you can fund it instantly as well. Because then, for a bank account, based on our account opening benchmark that we did last year, funding in new checking account is top of mind for consumers. Gen-Zers, particularly.

Getting cash back is the leading motivator for opening a new credit card, according to 42% of adults worldwide, per January 2024 data from Kantar.

The promise of all of this tech鈥攆rom AI to open banking and embedded finance鈥攊s speed: faster payments, faster credit underwriting, faster account opening, faster identity verification. And for nonfinancial institutions, it turns transactions into relationships, per Marqeta鈥檚 Kedia. Checking out at any store can now be a touchpoint for Apple if you use the Apple Card or tap to pay.

But I think that this idea of traditional versus digital media and how to reach these young consumers, at the high level, because we're talking about US consumer banking habits, I think that the headline is that Gen Z consumers are interested in opening up bank accounts right now. There's a lot of them and they're going to be opening up a lot of bank accounts.

Don鈥檛 forget: Gen Zers are about to open up a lot of new bank accounts. To brush up on their evaluation criteria, read this next.

The survey mainly aims to gain insights into the consumers' banking journey in opening new bank accounts and purchasing bank products/services. It explores the channels that raise awareness of banking brands and offerings, the sources consumers rely on for research, the factors influencing conversions, and the key elements that foster trust in a banking brand.

And you need to have seamless digital account opening experiences, because that's how Gen Z are acquiring your account. Rob Rubin:. And David, we have you, I need to ask, because I've started to see an uptick of offers from credit card companies coming to me. Are credit card issuers also trying to get into the acquisition game? David Morris:. I would say that that's been fairly consistent.

They need them for their gaming accounts, for bank account opening, all that sort of stuff. They don't read a single email. They have hundreds, if not thousands of unread emails in their inbox. I have to prod them to check, have you had this email from school or college or whatever, and they don't open them.

Services that minimize in-person requirements when opening accounts can help banks attract more customers. Race to the super app: Offering all of the functions included within a super app is challenging鈥攏o FI has accomplished this feat yet, though some are actively working toward it.

The trend: Multi-banking happens when consumers maintain their accounts at one bank while also opening a new account at another bank, chasing better rates or a more appealing digital experience. This trend is likely to accelerate when regulations around open banking take effect in the US. Javelin Strategy & Research found that the average US consumer has 5.3 bank accounts.

Customers are opening up secondary accounts with wealth management companies and/or internet-only financial institutions (FIs) to take advantage of their rates. Around 50% of national bank customers have such secondary accounts, up from 44% in 2022.

Two separate US rulings in the last year determined that Google operates monopolies, opening the possibility for dramatic regulatory action: a forced sale of leading browser Chrome, a ban on deals to be the default search engine on platforms like iOS, or sales of its ad tech subsidiaries. The CMA鈥檚 investigation is another thorn in the company鈥檚 side.

Discrimination has deterred underserved groups like Latinos from opening bank accounts. Black and Hispanic consumers pay higher bank fees than white consumers. Many Hispanics face language barriers, and surprisingly few FIs have adapted their products and services for Spanish speakers. More than 20% of unbanked households can鈥檛 meet the minimum balance requirements many banks enforce. Why fintech?

Without the privacy concerns of switching FIs, or the red tape of opening and closing accounts, FIs will need to earn loyalty every day. Open banking does not necessarily mean FIs need to race to the bottom for pricing and rates. But they will need to offer innovative and improved financial products and services to attract and retain customers.