New research commissioned by Pay.UK, the owner and operator of The Current Account Switch Service, reveals that Gen Z define what makes a ‘good bank’ differently from previous generations, with nearly three-quarters
(72%) saying they value banks that reward everyday spending rather than financial milestones.
The study of 1,004 UK adults aged 16 – 28 shows over half say everyday perks such as free coffees, food discounts and cashback matter more than traditional benefits like interest rates (51%) or traditional loyalty programmes (53%).
Nearly two-thirds (64%) expect their bank to offer rewards that fit their lifestyle, while a similar proportion (65%) say “little treats” make them feel they are getting extra value. For more than seven in ten (72%), finding deals on small indulgences motivates better money management, and over three-fifths (60%) associate these small perks with improved wellbeing.
The appeal of everyday rewards also influences loyalty: in Greater London, over half (53%) say they would switch banks for better perks, compared to 48% in the East Midlands. Age also shapes engagement, with older Gen Z (25–28) showing the highest intent to switch, while younger Gen Z (16–24) demonstrate the strongest emotional response to rewards.
Digital convenience plays a central role in these expectations. Two thirds (66%) of Gen Z say it is important that rewards are accessible directly through their banking app, while more than half (56%) say they prioritise digital-first banking experiences above all else.
John Dentry, Product Owner at Pay.UK, owner and operator of the Current Account Switch Service, said: “Gen Z aren’t looking for complex financial products or rewards to target in the future – they want to see value day to day. For many younger people, the big milestones such as stepping onto the property ladder, getting married or starting a family feel further away than they did for previous generations, especially in the context of cost-of-living pressures.
Small practical perks that fit naturally into everyday spending make people feel rewarded and supported, and with the Current Account Switch Service making it easier than ever to move providers, banks and building societies that fail to deliver relevant, everyday value risk losing younger customers to those that do.”
