66% of Zillennials Use Their Phones as Bank Branch | PYMNTS.com (2025)

A recent report from PYMNTS reveals that zillennials, the demographic cohort straddling the late 20s and early 30s, are a driving force behind the evolution of digital banking, with a unique blend of tech-savviness and reliance on traditional financial institutions.

The study, “Generation Zillennial: Driving Financial Service Innovation,” explores the financial preferences and behaviors of this generation, highlighting their strong inclination towards mobile-first banking and an eagerness for innovative financial features.

Despite being digital natives with a keen interest in novel financial services like buy now, pay later (BNPL) and cryptocurrency, zillennials surprisingly show a greater affinity for national banks as their primary financial institution, signaling a nuanced relationship with the digital financial landscape.

The report, based on a survey of 3,724 respondents conducted in July, underscores that zillennials navigate a complex financial terrain characterized by multiple income streams, including salaries, freelance work and gig opportunities, coupled with various forms of debt such as student loans and credit card balances.

This generation actively engages with a diverse array of financial service providers, holding an average of nine different accounts, the highest among all generations, which may include savings, debit and credit cards, digital wallets, BNPL and cryptocurrency accounts. Their decision-making process when choosing a financial institution prioritizes technology, digital experience and customer care over traditional factors like branch proximity, reflecting their digital-first mindset.

Key data points from the report underscore zillennials’ distinct financial behaviors:

• Mobile Banking Dominance:A significant 66% of zillennials primarily use mobile banking for their financial needs, making them 47% more likely to do so than the average consumer. This highlights their preference for digital access over physical branch interactions, with 22% reporting they hadn’t visited a physical branch or ATM in the year prior to the survey.
• Traditional Roots in Banking: Despite their digital proclivities, zillennials are 23% more likely than the average consumer to primarily bank at national banks. Their adoption rate of digital-only banks as their primary financial institution (16%) is similar to that of Generation Z and millennials, indicating a cautious approach to fully digital banking relationships.
• Demand for Enhanced Digital Features: Zillennials express a greater interest than other age groups in currently unused banking features, particularly live support and chargeback resolution. They also show a strong appetite for planning and budgeting tools and streamlined digital onboarding processes, suggesting they view digital banking not just for convenience but as a means for better financial management.

Beyond these key findings, the “Generation Zillennial: Driving Financial Service Innovation” report also delves into zillennials’ perspectives on emerging technologies like GenAI and voice assistants, their shopping habits beyond social media influence and the apparent paradox of their high debt and spending alongside a strong sense of social responsibility.

These diverse areas of exploration within the report offer a comprehensive understanding of this critical consumer demographic for financial institutions seeking to tailor their services and strategies to meet the evolving needs of the zillennial generation.