As the UK gears up for the upcoming Budget announcement, a key demographic closely watching the fiscal landscape is Gen Z. These young adults are navigating a complex economic world shaped by inflation, housing affordability, and the lingering impact of the pandemic. But how financially literate is Gen Z, and are they prepared to make informed decisions as new financial policies and economic shifts unfold?  

Our latest consumer sentiment research, , examines Gen Z’s relationship with their finances and their preferences when it comes to engaging with brands. In this blog, we’ll delve into the report’s findings and what this means for financial institutions in the year ahead. 

Gen Z are looking for personal and authentic brand communications  

Younger generations are reshaping customer expectations in the financial sector. These customers are unsurprisingly concerned about their financial future and place greater value on transparency, authenticity, and social responsibility than any other age group. A huge 70% of Gen Z actively seek out brands that demonstrate emotional intelligence, compared to just 45% of Boomers. The prioritisation of empathy-driven marketing highlights a growing expectation for financial institutions to adopt a more personal approach in their communications and services.  

While they may have less disposable income than older cohorts, thanks to their digital upbringing, they still expect highly personalised brand experiences. Being accustomed to algorithm-driven platforms like TikTok and Spotify, they expect the content they consume to be tailored to their unique preferences, accepting the tradeoff that they may need to give away some form of personal data. Below are some tangible ways that brands can forge more meaningful connections with their younger customer base: 

1 - Data-driven experiences  

These future generations need financial education and advice, but they do not want a one-size-fits-all solution. Instead, they desire product recommendations and services that align with their individual financial situations, goals, and values through bespoke, data-driven interactions.  

There are several new app-based entrants to the market offering personalised mobile-first banking, rivalling the big high street banks.  With customisable spending insights, real-time notifications and budgeting tools that help users to track their finances in a way that aligns to their daily lives, this data-driven experience appeals to this tech-savvy generation.  

2 - Open & transparent communication  

Authenticity is everything to Gen Z; they are quick to spot when brands are being disingenuous, and hidden charges or opaque financial jargon will likely push them away. To successfully navigate this, financial institutions must focus on transparency and community engagement, with humanised troubleshooting. By offering easily understandable breakdowns of fees and terms and avoiding bamboozling customers with lengthy legal-eaze, financial brands can develop a sense of trust and reliability.  

3 - Empathy and emotional intelligence  

Gen Z doesn’t just talk about valuing authenticity and emotional intelligence, they put their money where their mouth is. They interact mostly with brands who show understanding towards their struggles, particularly in relation to rising costs of living, student debt and navigating today’s uncertain financial landscape. There’s a growing trend for financial service providers to use an informal tone, offer money-saving tips and budgeting suggestions in a playful way. Turning financial advice into a less intimidating and relatable topic for those who are typically less money savvy will help brands forge lasting relationships.    

The importance of financial literacy 

found that only 2 in 5 young adults are financially literate and 61% do not recall receiving financial education at school; this gap in financial knowledge presents a significant opportunity for financial services brands. 

Turning passive younger audiences into active participants by improving their financial literacy will result in brands being able to develop deeper, more meaningful connections with their future customer base. By stepping up to provide financial education, brands can establish longer-lasting relationships with those who may be less confident navigating banking and insurance products. 

2025 financial sector trends – what should brands do next?  

To succeed moving forward, finance brands must move beyond merely transactional relationships and engage customers on a more human level. Some of the key takeaways from our research include:   

• Address financial literacy: Recognise that many consumers lack confidence in managing their finances. Contributing to financial education efforts will lead to increased trust and engagement with financial products in the future. 
• Tackle financial exclusion: Brands can play a role in promoting financial inclusion by offering accessible financial products, tailored to diverse customer needs. 
• Engage customers early: Secure long-term customer loyalty by building early relationships with customers through genuine value exchange. 

Dentsu is supporting its clients to innovate to impact through outcomes that achieve three-way good for people, business and society – our Sanpo Yoshi philosophy. Through balancing purpose and profit by upskilling the next generation, financial services companies can play an active role in supporting the growing needs of our society, in turn achieving positive outcomes for their business that aid long-term sustainable growth. 

If your brand needs help with creating a long-term strategy to connect with your customers, get in touch. Download the full Read the Room report , to learn more about the importance of personally tailored engagement, authenticity, and education with customers of the finance industry.  

For more insights on financial sector trends, take a look at our . Or, if you’re interested in our latest Global Media Trends report, then read at our latest thinking .