Why Younger Consumers Are Forcing Banks to Rethink
What financial service companies need to know about young adults as they learn to manage their money
Young adult consumers are fundamentally reshaping the financial services landscape in the U.S., forcing banks, insurers, and fintech brands to rethink how they engage, message, and deliver value. Unlike previous generations, 18-29-year-olds are digitally native, highly adaptive, and increasingly skeptical of traditional financial institutions.
Their attitudes reflect a blend of optimism and caution: while 58% say the U.S. economy is worse than it was 12 months ago, 29% say their household finances are better, 19% higher than the average U.S. adult. In fact, 48% believe their own household finances will improve over the next year, 26% higher than average, while most think the U.S. economy will either worsen or remain unchanged. This contrast highlights a critical dynamic for marketers: macro pessimism paired with personal optimism.
For financial brands, this creates an opportunity to position themselves as partners in personal progress rather than commentators on broader economic uncertainty. Reaching this audience effectively means understanding how their behaviors, from banking to spending to investing, are evolving in real time.
Financial brands don't need to calm young adults' economic anxiety, but they can help steer them toward personal optimism.
Influence comes from peers, not professionals
Perhaps one of the most defining shifts among 18-29-year-olds is where they turn for financial advice.
- Traditional advisors are no longer the primary source of guidance. In fact, younger consumers are 55% less likely than average to contact a financial advisor, 66% less likely to work with a certified financial planner, and 65% less likely to reach out to an insurance agent.
- Additionally, only 60% would trust the advice from a financial professional when it comes to managing their money.
- Instead, they rely heavily on informal and digital channels and are 38% more likely to turn to friends and family, 44% more likely to use social media, and 20% more likely to listen to podcasts for financial advice.
- On the flipside, younger consumers like to give out advice too. 60% recommend financial products they like, 33% take the opportunity to chat about finance when it comes up, and 32% even say people often come to them for money advice.
This signals a profound shift in trust, moving away from institutions toward communities and content. Since credibility is no longer built solely through expertise, financial marketers must lean into relatability, transparency, and presence in the channels where these conversations are already happening. Influencer partnerships, educational content, and peer-driven storytelling will be key levers. Brands that fail to adapt risk becoming invisible in the financial decision-making journey.
Brand loyalty is dying, but digital banking ecosystems are in
Younger consumers are redefining what it means to “have a bank,” and loyalty is no longer a given.
- Adults aged 18–29 are 20% more likely than the average American to have switched banks in the past year, and this behavior is accelerating, with 2.4 million switching in 2022, 2.7 million in 2024, and over 2.9 million in 2026.
- While large institutions like Chase, Wells Fargo, Capital One, and Bank of America still dominate as primary banks, younger consumers are 72% more likely to bank with Chime, signaling strong adoption of digital-first alternatives.
- The allure of digital banking is strong, with 51% of younger consumers having negative feelings about visiting their local bank branch in person, 10% higher than average.
- Beyond traditional banking, 75% actively use digital payment services, creating a fragmented but highly engaged financial ecosystem.
- 36% use Apple Pay or Apple Cash (45% higher than average), 28% use Zelle (13% higher), 27% use Venmo (8% higher), 19% use Cash App (45% higher), and 12% use Google Pay (18% higher).
This behavior shows that younger consumers are diversified. For marketers, success depends on interoperability, convenience, and meeting consumers where they already transact. Winning brands will position themselves as part of a larger ecosystem rather than trying to own the entire relationship.
Financial independence is becoming more modular, more digital, and less tied to traditional timelines.
Delayed Milestones, Not Diminished Ambition
Life-stage milestones are shifting for younger consumers, but their aspirations remain firmly intact.
- Homeownership has declined, with 41% of this age group currently owning a home compared to 48% in 2022, while renting has increased to 52%, up from 45% over the same period.
- However, this delay does not signal disinterest. 22% intend to buy their first home within the next year, and even more (26%) are planning to obtain property insurance, showing they are thinking big picture.
- Family formation tells a similar story: 17% are currently parents, a figure that has remained steady, while 14% plan to become parents within the next year, up from 12% in 2022.
These trends indicate that younger consumers are postponing, not abandoning, traditional financial milestones. Financial constraints, including inflation and rising rates, are likely contributors to this delay.
For financial institutions, this creates an opportunity to support “in-between” stages, helping consumers bridge the gap between aspiration and affordability. Messaging that acknowledges this delay while offering practical pathways forward will resonate more strongly than traditional milestone-based marketing.
Spending smarter under inflation pressure
Rising costs are clearly shaping how 18-29-year-olds manage their daily finances, forcing both trade-offs and new behaviors.
- Many are making lifestyle sacrifices, with 36% cutting back on dining out, 30% reducing clothing purchases, and 25% scaling back on events and travel.
- At the same time, financial pressure is driving ambition, as 30% are actively job hunting for higher pay, 62% higher than the average adult.
However, these pressures are also influencing financial decisions in ways that may have long-term implications.
- 24% are putting less into savings, 21% are using credit more (31% higher than average), and 20% are turning to Buy Now, Pay Later services (33% higher than average).
- Additionally, 18% are delaying home improvement projects, 15% are considering taking out a loan (37% higher than average), and 14% are switching or applying for new credit cards (58% higher than average).
This combination of restraint and reliance on credit reveals a balancing act between immediate needs and future goals. Financial brands should respond emphasizing flexibility, responsible credit tools, and pathways to regain financial stability without judgment.
Playing it safe… but still curious about risk
When it comes to investing, younger consumers exhibit a nuanced and sometimes contradictory approach to risk.
- A majority (56%) prefer low-risk investments even if it means lower returns, signaling a desire for stability in uncertain times.
- 51% believe the stock market is too risky, a sentiment that is 15% higher than the average adult.
- Yet, this caution coexists with a strong appetite for opportunity, as 32% say they enjoy taking risks for the chance of higher returns, 14% higher than average.
This duality suggests a segmented mindset, where some consumers are risk-averse while others are motivated by growth and financial upside. It also reflects a broader curiosity about financial markets and emerging opportunities. The takeaway is not to choose one narrative over the other, but to offer tiered solutions that cater to both ends of the spectrum. Messaging should emphasize both security and growth, allowing consumers to choose their own financial path.
How financial brands can win younger consumers
Young adult consumers are actively reshaping how financial services are being used. They are switching banks at higher rates, relying heavily on digital payment tools, navigating financial pressure, and seeking advice outside traditional institutions. Yet despite this complexity, three clear messaging themes emerge for banks and insurers looking to build relevance and trust:
Want to learn more?
Learn about Modern Financial Consumers: Banking & Investing Audiences from MRI-Simmons, available to activate through your DSP.
Why financial brands must evolve now
Younger consumers represent a fundamental shift in how financial services are discovered, evaluated, and used. They are more fluid in their banking relationships, self-directed, digitally engaged, cautious yet curious about risk, and reliant on peer-driven information sources than any generation before them. At the same time, they are navigating real financial pressures while maintaining a strong belief in their future financial progress. They are not looking for institutions to take control of their finances; they are looking for tools and partners that help them stay in control.
For advertisers, this creates both a challenge and an opportunity: traditional messaging rooted in stability, authority, and long-term loyalty is no longer enough. Instead, financial brands must evolve to become flexible, empowering, and embedded in the everyday financial lives of younger consumers. The winning strategy is to become an empowering co-pilot, delivering simplicity, flexibility, and forward momentum at every stage of the financial journey.
Sources: Source: MRI-Simmons 2026 Q2 Trending Topics Study (W26 USA)
