When does Gen Z begin to lose trust in traditional banks?

Generation-specific shifts in the financial sector are clearly observable in Gen Z. This demographic, born from the late 1990s onward, exhibits markedly different behavior towards wealth management compared to previous generations. According to research by NS3.AI, it becomes evident that Gen Z increasingly views cryptocurrencies as a trustworthy alternative to established banking systems.

Gen Z relies on transparent control rather than institutional trust

The preferences of this generation are based on a fundamental difference: direct access and complete transparency over their financial assets. This is not merely a trend but reflects a deep mistrust of the opacity of traditional financial institutions. Nearly 50 percent of Gen Z has actively engaged with crypto exchanges, demonstrating a high level of involvement in both decentralized and regulated custody solutions.

Cryptocurrencies are also gaining importance in mortgage lending

The shift is not limited to pure investments. Its influence extends into other financial domains, such as mortgage lending and credit business. Crypto holdings are increasingly recognized and valued as collateral. This indicates that institutional actors are already observing and responding to the structural change driven by Gen Z.

The long-term impact on the financial system

This cross-generational breach of trust with traditional banks leads to a comprehensive transformation of the financial architecture. Gen Z acts as a catalyst for this change, with cryptocurrencies no longer seen as an experimental fringe but as an accepted financial alternative. This development will put pressure on the entire banking system in the coming years and lead to profound reforms.