Young women are getting richer. Here’s how banks should market to them

Young women are getting richer. Over the next 20 years, $80 trillion will change hands as older generations leave money to their children — and millennial and Generation Z women are expected to benefit. Millennials already make up the majority of the American workforce, with Gen Z following quickly behind.

Although millennials and Gen Z women are expected to benefit greatly from this transfer of wealth, banks are still not treating these groups as serious potential customers. Just 9% of financial services executives in a recent Capgemini survey say they are targeting Gen Z customers right now. The vast majority (94%) of women feel their economic power is being underestimated, according to a survey from Ellevest.

“Millennials and Gen Z are looking for banks that get them,” says Katya Varbanova, a brand marketing consultant. “One of the biggest pain points of Gen Z and millennials is they feel robbed of the opportunities that their parents had. They are generally at a disadvantage and they don’t feel like most brands understand that.”

Long-term, ignoring the unique needs of young women could have big impacts for banks, particularly community banks and credit unions, which tend to have an older customer base already. Baby Boomers were less likely to bank with megabanks and more likely to bank with community banks compared with younger generations, according to a survey of 26,000 banking customers from software company EPAM. Just 36% of Boomers say they bank with megabanks, compared to 48% of millennials, according to EPAM data.

 

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