Gen Z isn’t motivated by the same factors as their parents, and loyalty programs need to reflect the world they’ve grown up in. This generation is used to personalization at every turn: playlists tailored to their mood, shopping suggestions based on their habits, and social feeds that reflect their interests.

When everything else in their life feels custom-built, generic rewards from their financial institution of choice fall flat. Data from a survey that CORA Loyalty conducted with The Harris Poll highlights the disconnect.

When Gen Z chooses which credit card to use at checkout, rewards matter nearly as much as convenience; 40% say loyalty programs influence their decision, just behind the 41% who prioritize the card that’s most widely accepted (CORA/Harris Poll, 2024). This is a strong signal that rewards still carry weight for younger consumers, but only if they’re meaningful.

Rewards hold different meanings across generations. While older generations are primarily drawn to tangible benefits like points, miles, and discounts, Gen Z is looking for more personalized, flexible, and lifestyle-aligned perks. For example, payment flexibility—like the ability to combine points and cash for a single purchase—appeals to 38% of Gen Z, compared to just 14% of Boomers (CORA/Harris Poll, 2024).

They’re also motivated by gamification and purpose-driven engagement that feels interactive and aligned with their values. Elevated experiences like VIP concert access, hotel upgrades, and status-based perks such as airport lounge entry resonate more with Gen Z than with older groups.

User experience matters as much as the rewards themselves. When considering a new credit card, Gen Z is more likely than older generations to weigh user experience (40%) along with traditional factors like interest rates (46%) or fees (38%) (CORA/Harris Poll, 2025). For them, a seamless, intuitive, and mobile-first interface isn’t a bonus but an expectation that shapes their perception of the entire brand.

This digital first generation also turns heavily to social media for financial guidance: research from PYMNTS shows 79% of Gen Z and millennials seek financial advice through social platforms, raising expectations for equally sophisticated banking interfaces (PYMNTS, 2024).

Despite these signals, many financial institutions either don’t offer loyalty programs or rely on outdated models built for older consumers, like generic cashback. To effectively engage Gen Z, financial institutions should offer flexible rewards that go beyond traditional cashback to include unique experiences, digital discounts, and hybrid payment options that combine points and cash.

They must prioritize seamless, mobile-first user experiences with rewards that are easy to access and redeem. Additionally, incorporating financial health tools such as credit monitoring, bill analysis, and personalized spending insights can provide meaningful support.

The stakes are high: research from the National Endowment for Financial Education shows nearly 8 in 10 students say financial stress harms their mental health (NEFE, 2024), making financial wellness tools within loyalty programs not just preferred but potentially essential. Finally, recognizing and rewarding status through exclusive perks like premium customer support or VIP access will resonate strongly with younger users.

Some financial institutions are already experimenting with loyalty approaches that go beyond transactions. A CORA Loyalty client offers teen accounts with financial education components designed to help young people develop healthy money habits, recognizing that investing in customers’ financial literacy builds deeper, longer-term loyalty.

Similarly, Revolut’s loyalty ecosystem includes lifestyle perks like airport lounge access, cashback on travel bookings, and fee-free currency exchange, aligning rewards with Gen Z’s love of travel and global experiences.

When well executed, loyalty programs open the door to more direct and meaningful interactions with Gen Z customers, many of whom are navigating major life firsts, from opening their first debit or credit card to managing living expenses, buying a car, or paying for college.

Unlike previous generations who faced more stable economic conditions, a recent Bank of America study found that 69% of Gen Z cite inflation and cost of living as their top financial concerns, while 46% live paycheck to paycheck (Bank of America, 2024). This economic pressure makes loyalty programs that help them stretch their budgets or ease daily expenses even more valuable.

Effective programs can increase share of wallet, transaction frequency, and overall spending; for Gen Z, they also offer crucial support during seasons of change that will lead to long-term brand loyalty.

At their peak, these programs also give financial institutions permission to ask for more from their customers, whether it’s data sharing, deeper product engagement, or becoming their primary financial partner. They also serve as powerful feedback tools, providing insights into Gen Z’s unique preferences and behaviours that can inform broader strategy, from product development to marketing.

Financial institutions don’t need to discard their existing loyalty frameworks to engage Gen Z, but they must evolve them. Partnering with specialized loyalty software providers like CORA Loyalty helps institutions tap into this growing and profitable market through dedicated expertise and modern technology.

These providers deliver cost savings, continuous updates, and flexible, fully managed programs that can scale and adapt to future generations, accelerating transformation while delivering a modern experience that prioritizes innovation and growth.

Gen Z may be early in their financial journeys, but they are already shaping habits and preferences that will influence their banking relationships for decades. This generation is quick to compare, switch, and share their experiences in real time, making loyalty programs either a true competitive advantage or a missed opportunity.

Financial institutions that understand and meet their expectations stand to build lasting connections and remain relevant well into the future.

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