How to Optimize Fintech Apps for Gen Z Users

GUEST POST: Zac Amos (ReHack)

Generation Z is now contributing to the growing number of consumers, but they’re a different kind of market.

Since they were brought up during the rise of the internet and computer technology, these digital natives expect everything to be seamless, functional and personalized while maintaining aesthetics.

Fintech apps must evolve to meet the demands of Gen Z users.

Why Target the Gen Z Market?

Anyone born between 1997 and 2012 is referred to as Generation Z.

Despite their youngest members being just 13 years old, their disposable income has reached $360 billion, thanks to today’s high schoolers, college students and those in their 20s. By 2030, Gen Z will make up 30% of the American workforce, and their influence will only continue to grow.

Gen Zers naturally expect more from finance, with 62% of their working population investing their money — 57% through apps. This presents a glaring opportunity for fintech to capture much of their disposable income. Here’s how solutions can be designed to attract this expanding demographic.

1. Design for Mobile-First Engagement

As the first generation to come of age during the smartphone era, mobile device ownership is more of a necessity than a luxury for them.

They are glued to their phones daily and see mobile banking as more appealing, so any fintech app that doesn’t leverage a mobile-first design is at an immediate disadvantage.

Prioritize optimizing applications for smartphone use with a clean, intuitive interface. Visual language is key for this demographic — they prefer bold, high-contrast color palettes, micro-animations and interactive elements.

Dark mode is also a popular feature, often a standard expectation for many Gen Z users. It enhances readability and reduces eye strain, which makes the visual experience more engaging.

2. Personalize the User Experience

Today’s users crave digital experiences that make them feel seen, understood and valued.

Fintech apps can leverage artificial intelligence (AI)-driven insights and dynamic content that adapt to each user’s history, behavior and financial goals.

Achieve this with personalized dashboards that track spending habits and savings goals at a glance.

AI’s machine learning capabilities also allow you to suggest customized products and services, such as investment opportunities. Customizable notifications help users stay on top of their budget and savings milestones.

3. Leverage Gamification Elements

Gamification isn’t just for gaming apps.

Incorporating a game-like experience into users’ banking experience allows fintech platforms to create a sense of achievement and growth for Gen Z clients who love a good challenge.

Introduce a savings challenge or investment leaderboard to spark engagement. With teenagers barely out of high school already building their portfolios as young as 19, they will appreciate the interaction and sense of reward for hitting milestones.

Offer virtual badges or loyalty points for reaching financial goals, and use streaks or progress bars to keep them motivated over time.

4. Reduce Friction Points for More Conversions

Your app or website might have small inefficiencies that, if not addressed, can lead to frustration over time and hinder smooth usage.

Understand your target market well and proactively eliminate potential friction points before they escalate to boost sales and client retention.

Gen Z users have a need for speed and expect instant gratification, which extends to their digital experiences. Lengthy sign-up forms, hidden fees or overly complex verification processes are deal breakers for many.

To address this, simplify your app’s onboarding with social login options via Google or other social media platforms. Biometric authentication speeds up the process and is a definite plus in their books.

Be transparent about fees and security measures upfront, and offer real-time chat support through chatbots or in-app help centers for quick problem-solving.

5. Prioritize Security Without Compromising Convenience

While most of Gen Z prioritizes personalization over privacy, many digitally savvy users still care about protecting their personal data. The key is to create a secure verification system that’s easy to access without compromising privacy.

Remember that a frictionless experience is crucial, given their need for speed.

Incorporate a multifactor authentication system that feels effortless. Because biometric logins like scanning your face or fingerprint are a convenient yet secure method of authentication, it’s a perfect system for Gen Z.

From the user’s perspective, typing an email address and password is a hassle compared to simply using a facial scan. Data protection and usage policies should also be communicated clearly to avoid leaving users in the dark about how their data is used.

Push notifications are also big for Gen Z clients — 63% of those aged 18 to 34 are more likely to always or often enable notifications compared to just 23% of 35-54-year-olds. They prefer push notifications for their concise, timely content over lengthy emails. Leverage this trend to alert users to suspicious activities without alarming them.

6. Foster Community and Social Sharing

Gen Z is known for seeking peer recommendations. That’s why they have the highest trust in social media influencers. Partnering with influencers or even fintech thought leaders can establish credibility and drive engagement for apps.

Community-driven experiences resonate well with them, too, so a social sharing feature within the app helps them feel connected with communities they relate to.

Fintech developers can design in-app forums where users exchange tips or participate in question-and-answer discussions regarding their financial goals and queries.

7. Optimize for Speed and Reliability

Give a Gen Zer a glitchy app, and they’ll close it quicker than you can say “uninstall.” Optimizing the app’s performance should always be a constant priority, especially with a target market that values speed and efficiency.

Ensure that your app’s load time is consistently tested and refined, and utilize cloud infrastructure to scale as needed during high-traffic periods. Regular maintenance and updates minimize downtime and help avoid frustrated users.

Fintech’s Future Lies in Gen Z’s Wallets

Many Gen Zers are now joining the working sector of society, and their spending power will only grow as the years go by. Thoughtful integration of user experience and innovative engagement strategies can help fintech apps become valuable financial companions for Gen Z clients.

About the Author: Zac Amos (Features Editor at ReHack Magazine) is a tech writer who specializes in fintech, AI, and cybersecurity, and he has bylines on publications such as Forbes, VentureBeat, and Advisorpedia. For more of his work, check out his portfolio site or follow him on LinkedIn or X (Twitter).