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- Banks That Want Younger Customers Are Taking On a New Role: Emotional Support Buddy. Financial Coach. Therapist.
Banks That Want Younger Customers Are Taking On a New Role: Emotional Support Buddy. Financial Coach. Therapist.
Fonta Gilliam
May 19, 2025
Wealth and wellness. Our generation demands both.
If you still think financial wellness is just a fluffy HR perk or a nice-to-have product feature, you’re missing the moment. Gen Z and Millennials—aka MilZ—have flipped the script on how they think about money. For them, money isn’t just about wealth anymore. It’s about wealth + well-being; and they are not mutually exclusive.
We want banks, credit unions, and fintechs to start showing up not just as financial institutions—but as wellness partners.
This isn’t a fad. It’s the future. And if you’re in banking or fintech leadership? It’s your next growth opportunity.
In this issue
ICYMI: Top reads of the week
Meet the Future of Finance: Why Wellthi?
Poll: How did we do this week?
ICYMI
🛒 “Buy Now, Regret Later” Gen Z Turns to BNPL for Groceries, Then Pays the Price
A LendingTree study reveals that 64% of Gen Z have used “Buy Now, Pay Later” services, with 25% applying them to grocery purchases—a significant increase from 14% the previous year. However, 41% have missed at least one payment, and 64% express regret over their BNPL decisions. It’s like using a credit card to buy ramen noodles—convenient now, but your wallet feels the burn later.
🏠 “Home Is Where the Loan Is” Gen Z and Millennials Rely on Family Gifts to Afford Homes
A Mortgage Choice survey finds that nearly a quarter of young Australians depend on borrowed money or family gifts to purchase homes, with some receiving up to $500,000. It’s the modern version of “pulling yourself up by your bootstraps,” except the bootstraps are your parents’ bank accounts.
💳 “How millennials and Gen Z bank” 97 stats you need to know
For example, did you know Gen Z and Millennial cardholders have higher average FICO scores (~750) and lower delinquency rates compared to older generations? Despite industry trends of rising debt among young consumers, these groups are proving to be financially savvy. Who knew that the generation blamed for killing industries would be so good at managing credit?
💰 “Cash Me If You Can” Gen Z and Millennials Prefer Digital Payments, But Still Carry Cash
A Chime survey reveals that while 91% of Gen Z prefer digital payments, they still carry an average of $82 in cash. Interestingly, nearly one-third believe spending cash doesn’t “count” since it doesn’t reduce their account balance. It’s like a magic trick: now you see your money, now you don’t—but only digitally.
💸 “No Spend, No Problem?” Young Adults Embrace ‘No-Spend’ Challenges to Boost Savings
In an effort to rebuild savings, many Millennials and Gen Z individuals are committing to “no-spend” or “low-spend” years. An Intuit Credit Karma survey found that 20% plan a “no-buy year,” while 56% aim for a “low-buy year.” It’s the adult version of playing “The Floor is Lava,” but the lava is your bank account.
DEEP DIVE
Banks That Want Younger Customers Are Taking On a New Role: Financial Coach. Emotional Support Buddy. Therapist.
By Fonta Gilliam
Here’s a stat you need to know:
72% of Americans under 40 say money stress impacts their mental health.
More than half of Gen Z say financial anxiety affects their daily life.
So what are we doing about it? We’re making money management part of their self-care routines. Budgeting apps are becoming digital therapists. Group savings challenges are replacing brunch. This is personal. Emotional. And deeply behavioral.
MilZ is not out here just trying to “budget better.” We want to feel better—about our future, about our habits, about how we show up in the world.
💬 “Managing my money gives me peace of mind.”
What’s Trending in Money + Self-Care Culture
Here’s what we’re seeing catch fire across the MilZ ecosystem:
🎯 No-Spend Challenges
TikTokers are turning minimalism into a competitive sport. “No Buy January” has gone viral. People are flexing their savings streaks the same way they used to post #OOTD.
This is gamified saving—and it’s happening without banks even in the room.
🔊 Loud Budgeting
This one’s my favorite. Instead of ducking out of dinner plans in shame, MilZ is saying “Nah, I’m on a budget. Catch y’all next time.”
And the crowd says Yaassss.
We’ve got a whole generation making financial boundaries a social flex—and your app better be built to support that.
✉️ Cash Stuffing & Envelope Budgets
We’re bringing back grandma’s budgeting system—only it’s on TikTok with gel pens and pastel binders. But the psychology? Spot on. Visual, tactile, accountable.
Apps like Goodbudget and YNAB (You Need A Budget) are riding this wave. Others should be, too.Takeaway: Curation is queen. She doesn’t want more content—she wants better content, streamlined in one place, validated by experts that she can relate to and trust.
Influencers to Watch
@nospendmatleave: A first-time mom documenting her no-spend journey to pay off debt, Hope shares her experiences and tips on TikTok and Instagram.
@alexonabudget: Alex provides insights into budgeting and no-spend challenges, helping followers manage their finances effectively.
@stephandden) This duo has 315,000 followers on TikTok, providing money tips and promoting the concept of “loud budgeting,” encouraging financial transparency.
@mohaewithjennypark With 122,000 followers, Jenny offers “big sister” advice on work, money, and life goals, aligning with the loud budgeting movement.
@baddiesandbudgets With over 840,000 followers on TikTok, Jasmine Taylor popularized the “cash stuffing” method, turning it into a thriving business. She shares budgeting strategies and sells branded budgeting supplies through her platform.
@stephtalksmoney A lifestyle influencer with over 322,000 followers, Steph frequently posts cash-stuffing videos, offering practical budgeting advice.
Financial Therapy Is Having a Moment
Yes, I said therapy.
Financial therapy isn’t just about talking budgets—it’s about addressing financial trauma, anxiety, and the emotional drivers behind spending.
And get this: KeyBank’s Laurel Road brought on a financial therapist to support young customers.
That’s not a marketing stunt. That’s foresight.
📊 Stat Drop:
• 73% of Gen Z and 77% of Millennials say finances regularly stress them out
• 80% want their bank to help improve financial health—but only 14% say it’s happening
Let that sink in. Huge demand. Tiny supply.
Money Apps Are Getting Mindful
You want to see what emotional UX looks like in action? Look at Cleo. It’s an AI budgeting app that roasts or hypes you depending on how you spend.
Skip your savings goal to buy a latte? Cleo might drag you playfully.
Hit a new milestone? You’re getting virtual confetti and applause.
It’s finance with feelings—and that’s why Gen Z keeps coming back.
Even Ally Bank teamed up with Calm (yes, the meditation app) to offer stress-relieving tools for customers.
The lesson here? Don’t just track dollars. Track emotions. Reduce anxiety. Celebrate wins.
It’s working.
Social Finance: The New Community Builder
You already know I have to talk about Wellthi here.
We built a platform that lets young people save in groups, create shared goals, and cheer each other on. Why? Because Gen Z is already making money social. Positive peep pressure works.
From Reddit threads to TikTok finance hacks, they’re learning and growing together. So we thought: why not help them save together too?
Whether it’s a group emergency fund, a shared goal for a trip, or just public savings milestones, we turn finance into a community experience. And it works.
Studies prove that publicly committing your goals to someone gives you at least a 65% chance of completing them. Having a specific accountability partner raises your chance of success to a whopping 95%! If research proves this, why are we always trying to reach our goals alone?
A study by Dominican University found that over 70% of those who shared updates about their goals with a friend reported successful goal achievement, compared to those who did not.
“When goals are met, healthy habits are reinforced and these can be used to fuel further progression throughout your mental health journey. This is due to the dopamine boost that we achieve from meeting a goal; our bodies seek dopamine, and will naturally be more inclined to fulfil goals that we know will provide us with a boost of this neurotransmitter. In contrast, going for a long time without achieving a goal may decrease motivation, meaning we are less likely to progress with wellbeing improvements.”
Empathy in UX: Design that Feels Like Support
This might be the most important takeaway.
It’s not enough to give people tools—you have to make them feel safe using them.
Look at the difference:
❌ “Your account is overdrawn. Fee applied.”
✅ “Hey, looks like you’re a little short—want help covering this?”
Emotionally intelligent UX is the new killer feature.
Some apps are even testing “panic buttons” that freeze spending and offer mental health resources. Others flag when spending looks emotionally erratic and offer support.
The message? Money isn’t just numbers. It’s emotional. Design like you know that.
What Should Banks Do—Right Now
Here’s your MilZ action plan. No fluff. Just moves:
Make saving feel good. Gamify it. Reward it. Show progress. Make it shareable.
Show empathy. Train your bots and reps to speak human. Your app should say “we got this,” not “you failed.”
Give them a squad. Build features for group saving, financial accountability partners, and social milestones.
Personalize the wellness journey. Use behavioral data to offer personalized goals and nudges. “Want to boost your emergency fund by $200 this month?” Yes please.
Partner outside the box. Mental health apps. Influencers. Therapists. If it helps MilZ feel better about money, it’s fair game.
Final Thought
Look, this is personal for me.
I started Wellthi because I wanted to feel seen, safe, and supported in my financial journey. My company’s name, Wellthi, is literally a play on the craving for both “wealth” and “wellness.” And that’s the call to action for the financial services industry.
Financial wellness is the next frontier.
Not just as a product. But as a mission. It’s your move.
—Fonta
Meet the Future of Finance!
Wellthi Technologies—backed by Mastercard & Northwestern Mutual Future Ventures—offers a turnkey Virtual Advisor Technology app tailored for lowering branch costs, driving low-cost deposits, and maximizing billion dollar opportunities with under 45 consumers. Engage Millennials & Gen Z with social finance features that drive loyalty and deposits. Our platform transforms banking into a community experience with goal sharing, crowdfunding, and peer support—helping credit unions stay relevant, digital-first, and growth-ready. Seamlessly onboard new members, boost engagement, and unlock new revenue streams—all without costly tech investments.
Ready to future-proof your business?
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