Nearly one in three Americans have already dumped their financial institution after a terrible digital banking experience.
Not threatened to leave. Actually left.
That’s according to new research from Alkami Technology—a digital banking platform provider—conducted with generational expert Jason Dorsey and The Center for Generational Kinetics. The study, called “Tailoring the Banking Experience to Each Generation,” surveyed 1,500 digital banking users across Gen Z, Millennials, Gen X, and Baby Boomers. And the message is crystal clear: your mobile app isn’t just a convenient add-on anymore. It’s the front door, the teller window, and the relationship manager all rolled into one.
Digital Banking Is Where Relationships Live or Die
The numbers don’t lie. A whopping 85% of consumers say digital banking quality is essential or important when they’re shopping for a new bank or credit union. Even more telling? About half of all respondents would switch providers if they found a significantly better digital experience elsewhere.
Translation: that clunky app you’ve been meaning to update? It’s costing you customers right now.
This shift puts regional and community financial institutions in an interesting position. They’re battling megabanks with massive tech budgets, nimble fintechs born in the cloud, and AI-powered experiences that are resetting consumer expectations faster than you can say “open banking.” The institutions that win will be the ones that understand what each generation actually wants—not what stereotypes suggest they want.
Not All Generations Want the Same Thing (Shocking, Right?)
“Preferences are oftentimes reduced to stereotypes where younger generations only want mobile, or older generations only want to visit a branch for on-site service,” explains Marla Pieton, VP of brand, PR, and influencer marketing at Alkami. “This year’s research tells a more insightful story where generational differences reflect a variety of life stages, financial complexity, and comfort with technology.”
Here’s how each generation defines banking value:
Gen Z: Show Me the Money (Knowledge)
57% of Gen Z wants their primary bank to provide financial education. They’re not just looking for a place to park their paycheck—they want their bank to be a teacher. Think less “here’s your balance” and more “here’s how to actually build wealth.”
Millennials: Make It Work Together
65% of Millennials are comfortable with AI-powered features that help them manage spending, security, and day-to-day money decisions. They’re juggling a lot—student loans, mortgages, kids, careers—and they want tools that coordinate it all seamlessly.
Gen X: Give Me Control (And a Human When I Need One)
91% of Gen Xers say phone support is important, and 87% prioritize online virtual assistance. They want options and flexibility. Self-service is great, but they also want to know there’s a real person available when things get complicated.
Baby Boomers: Keep My Money Safe
92% of Boomers prioritize protection from fraudsters and hackers in their digital banking experience. Security isn’t just a feature—it’s the feature.
The Relevance Gap Is Real
Here’s where things get uncomfortable for smaller institutions. Only 38% of customers at regional and community banks say product recommendations have become more relevant over the past year. Compare that to 51% at online-only providers and 50% at major national banks.
The gap gets even more pronounced when you look at the bigger picture: 44% of digital banking users wish their primary provider would do a better job anticipating their financial needs and goals. People aren’t just open to personalization—they’re actively wanting it.
Jason Dorsey, president of The Center for Generational Kinetics, puts it this way: “A primary banking relationship is no longer a promise of exclusivity. Consumers may stay with the same bank or credit union for years while spreading their financial activity across providers that better meet specific needs.”
In other words, loyalty isn’t dead—it’s just been redefined. Your customers might keep their checking account with you while moving their savings to a high-yield online account and using a fintech app for investments. If you want to recapture that spread-out relationship, you need to become more relevant in the moments that actually matter.
AI Isn’t the Boogeyman (If You Use It Right)
There’s good news on the technology front. Despite all the hand-wringing about AI, 51% of digital banking users are comfortable with artificial intelligence processing their financial data—as long as it leads to a better experience.
The key phrase there is “better experience.” People don’t want AI for AI’s sake. They want it for specific, valuable use cases: fraud protection, time savings, and smarter financial decisions. Lead with those benefits, and consumers will follow.
What This Means for Banks and Credit Unions
The research points toward what Alkami calls “Anticipatory Banking”—financial institutions that combine generational insights with individual account holder data to predict needs before customers even ask.
It’s a tall order, especially for smaller institutions competing against tech giants. But there’s opportunity here too. Regional and community banks have always competed on relationships and local knowledge. Now they need to translate that advantage into the digital space.
The good news? The playbook is becoming clearer. Understand generational patterns. Layer in individual behavior data. Design experiences that feel personal, not just personalized. And above all, remember that your digital banking platform isn’t just a feature—it’s the relationship.
Because in 2026, when someone says “I’m going to the bank,” they probably mean they’re opening an app. And if that app disappoints them enough times, well, there are about a dozen alternatives just a download away.