The news: Gen Z is delaying many traditional financial milestones while getting an earlier start on investing, according to a new Bank of America report highlighted by Investopedia. The generation has the lowest savings-to-spending ratio of any cohort. As a result of affordability challenges and a difficult job market, they are putting off purchasing homes and starting families. At the same time, they’re saving for retirement and investing in the stock market earlier than previous generations.

Zooming in: As Gen Z's financial priorities evolve, so do the institutions they rely on most. According to EMARKETER survey data, the share of US Gen Z banking consumers who primarily depend on a neobank increased from 8.9% in October 2024 to 17.2% in October 2025. During the same period, reliance on traditional banks fell from 79.2% to 75.6%, and credit unions dropped from 11.9% to 7.3%.

As younger consumers navigate shifting financial realities, many fintechs have expanded into broad financial ecosystems that combine banking, payments, budgeting, savings, investing, and credit in a single app.

Why this matters: Gen Zers are redefining what a primary financial relationship looks like. The cohort values platforms that help manage everyday financial life, raising expectations for what financial providers should deliver. Mobile-first experiences, automated savings tools, instant payments, integrated investing, and financial insights have become competitive differentiators alongside traditional banking products.

That shift explains why fintechs are investing heavily in becoming all-in-one financial platforms. Robinhood, for example, recently outlined a strategy centered on helping customers receive income, spend, save, invest, borrow, and manage finances through AI within a single ecosystem. And Chime recently launched Chime Invest, a commission-free platform that lets customers buy stocks and exchange traded funds directly within the Chime app. 

Implications for banks and fintechs: Traditional banks remain dominant among Gen Zers, serving more than three-quarters of these consumers. But they're beginning to lose their hold on the primary banking relationship.

For incumbent banks, digital experience and integrated money management tools are becoming as important as trust, scale, and product breadth. Banks that continue treating budgeting, investing, making payments, and saving as separate experiences risk losing day-to-day engagement—even if they retain customer accounts.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.