A recent study by Intuit Credit Karma reveals that one in four people from Generation Z in the UK has multiple bank accounts, although they only use one regularly. This phenomenon has been exacerbated by the increasing competition among financial institutions, which have made it easier to open accounts in order to attract a younger audience.
Less loyalty in banks and more economic need
The ease of opening accounts has led many users, including university students, to sign up for multiple services to benefit from the initial bonuses. A notable case in Bloomberg describes a student who, by opening dozens of accounts in a year, managed to accumulate £2,800 (approximately US$3,774) just in sign-up bonuses. This type of strategy has successfully prompted banks in the UK to acquire a large base of young customers through attractive incentives such as referral rewards and food delivery services.
However, experts warn that these incentives are just a first step. For financial institutions, the real challenge lies in turning these new customers into primary users after the bonuses have been granted. To achieve this, it is essential for banks to shift their focus from mere acquisition to increasing customer engagement. It is suggested that entities implement parameters requiring users to be active or maintain their accounts for a certain period to qualify for the incentives.
In addition, to encourage regular use of accounts, banks must offer a digital experience that resonates with the interests and needs of Generation Z. This means focusing on features that truly matter to this demographic, ensuring they keep their accounts active beyond the initial attraction of the bonus.
