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Engaging Millennial and Gen Z HENRYs: A Digital-First Playbook for Banks & Credit Unions

Author

Fonta Gilliam
May 26, 2025

This issue, I want to delve into how savvy financial institutions are innovating to win America’s HENRYs and HIPOs early. 

Millennial and Gen Z HENRYs (High Earners, Not Rich Yet) are rising professionals who might be future millionaires, but today they’re more pre-wealth than wealthy. 

Think of high potential (HIPO) individuals like a 28-year-old software engineer making six figures, or a medical resident with a high salary on the horizon – they earn hefty paychecks but haven’t accumulated substantial assets yet. Let’s not forget about startup founders, many of us are closing on eight figure venture capital rounds, literally ramen today - multimillionaire tomorrow ;) 

Private bankers often overlook these customers because, right now, they don’t fit the traditional “wealth management” profile. Yet this cohort is exactly who bankers and financial advisors should court early.

Over the next 20–30 years, an estimated $72.6 trillion will shift to younger generations in the Great Wealth Transfer, and Millennials and Gen Z are poised to become the wealthiest generations in history.

In this week’s Deep Dive I lay out the digital-first playbook banks and credit unions must have to attract and retain these incredibly valuable customers.

In this issue

Meet the Future of Finance: Why Wellthi?

ICYMI

1. Gamified Financial Education: GoHenry’s Success GoHenry, a fintech company targeting youths aged 6 to 18, has successfully combined financial education with gamification. Their “Money Missions” feature offers interactive lessons, leading to increased engagement and financial literacy among young users. This approach demonstrates the effectiveness of gamified tools in fostering financial habits early on. 

2. Digital-First, Yet Branch-Loyal: Gen Z’s Banking Paradox Despite being digital natives, a significant portion of Gen Z still values physical bank branches. A study found that 55% of Gen Z banking customers trust traditional banks more than fintech alternatives, especially concerning serious issues like fraud. This suggests that while digital services are crucial, maintaining a physical presence can enhance trust among younger customers. 

3. Personalized Banking Experiences: A Case Study A major bank responded to customer feedback by integrating a peer-to-peer payment feature into their app, allowing seamless bill splitting among friends. This addition became an instant hit, underscoring the importance of listening to customer needs and adapting services accordingly to enhance user satisfaction and loyalty. 

4. Ethical Banking Behavior Among Millennials and Gen Z A recent study published in the International Journal of Ethics and Systems delves into the ethical banking behaviors of Millennials and Gen Z. The research highlights that these cohorts prioritize ethical considerations in their banking choices, such as environmental sustainability and social responsibility. Banks that align their practices with these values—through transparent operations, sustainable investments, and community engagement—are more likely to earn the trust and loyalty of younger customers.

5. The Influence of Family on Gen Z’s Banking Choices A study focusing on Canadian Gen Z consumers reveals that family members significantly influence their choice of digital banking providers. This finding suggests that banks aiming to attract Gen Z customers should consider strategies that engage not just the individual but also their family units. Offering family-oriented financial products or referral programs could be effective in building relationships with this demographic. 

DEEP DIVE

Let’s start with the stats:

This is a huge opportunity for forward-thinking institutions to step in as trusted guides before these high earners get rich (and before someone else does). A bank that can integrate checking, saving, investing, and even trust services in a single digital platform will hold a strong appeal. 

Fintech-Forward Strategies to Attract HENRYs Early

In 2015, Goldman Sachs identified these high-earning young professionals as an underserved market and key target for new wealth entrants. Since then, fintech players have rushed in with innovative solutions, from student-loan refinancers to investing apps, aiming to become the go-to financial partner for HENRYs’ upcoming affluent lifestyle, while traditional banks and credit unions have lagged behind.

SoFi: A Comprehensive Financial Ecosystem

SoFi has evolved into a one-stop financial platform, providing services ranging from student loan refinancing to investing and high-yield savings accounts. Their user-friendly mobile app and commitment to eliminating fees have made them particularly attractive to younger, tech-savvy professionals seeking streamlined financial solutions. SoFi’s approach demonstrates the importance of offering comprehensive, accessible financial services to retain emerging affluent clients.

MoneyLion: Integrating AI for Personalized Financial Guidance

MoneyLion leverages artificial intelligence to provide personalized financial advice, helping users manage their money more effectively. By offering features like credit monitoring, budgeting tools, and investment options within a single app, MoneyLion caters to the holistic financial needs of its users, positioning itself as a valuable partner for HENRYs and HIPOs aiming to build wealth.

Meta and X: Embedding Payments into Social Platforms

Tech giants like Meta and X are integrating payment features into their social media platforms, making financial transactions more seamless for users. Meta Pay allows users to make purchases and send money directly through Facebook and Instagram, while X (formerly Twitter) is developing payment solutions in partnership with Visa to enable real-time peer-to-peer transactions. These integrations reflect a trend toward embedding financial services into everyday digital experiences, meeting users where they already spend their time online.

To remain competitive, traditional banks and credit unions must recognize and adapt to these shifts by enhancing their digital offerings, reducing friction in financial transactions, and providing personalized, comprehensive services that align with the expectations of HENRYs and HIPOs.

In recent discussions, banking executives have highlighted the importance of finding scalable ways to provide early-stage financial advice to high-potential clients (e.g., law students, startup founders). Their challenge: how to deliver personalized guidance at scale to clients who don’t yet qualify for traditional wealth management.

One avenue they are exploring is financial wellness tools that feel more like self-care than banking — think goal-setting, behavior nudges, and peer comparisons. A “mobile-first” approach with light advisory features could build trust early and transition users into private banking later.

“Too many Gen Zers are unable to afford the life they want to live. But, as we’ve seen time and time again, this generation is remarkably resilient. Already, they’re changing their habits to reduce unnecessary spending and build up their savings.”

Others are seeking to engage young affluent customers through innovative product offerings. For example, U.S. Bank’s “Bank Smartly” program combines savings accounts with credit card rewards, offering up to 4% cashback based on deposit balances, thereby incentivizing savings and spending within the bank’s ecosystem.

By integrating educational resources and incentivized products, banks aim to build lasting relationships with the next generation of affluent customers.

In other words, banks and credit unions can absolutely compete – but they’ll need to think and act like fintechs.

Best Practices Playbook

  1. Eliminate Friction and Build Trust Early: Start by removing the barriers and stressors that push young customers away. That means no sneaky fees, transparent terms, and empathetic policies. For example, many institutions have gained goodwill by nixing overdraft fees and offering early direct-deposit of paychecks. Nothing builds trust faster than demonstrating “we’re on your side.” Also, ensure onboarding is fast and paperless – if a grad student or new doctor can open an account or get approved for a starter investment account in minutes, you’ve made a stellar first impression. The goal is to make a young client think, “Whew, my bank actually helped me breathe easier today,” which will likely win you a fan for life.

  2. Offer Solutions Tailored to Their Life Stage: HENRYs in grad school, launching startups, or starting out in medicine or law have unique needs. Get creative with products that solve their immediate pain points while fostering long-term loyalty. For instance, online lender SoFi attracted thousands of early-career professionals by refinancing student loans and later offering loosened lending requirements for first-time homebuyers with high incomes but low down payments. In fact, 80% of SoFi’s early mortgage borrowers were exactly those high-loan-to-value “high earners not rich yet” who needed a jumbo loan despite little savings. That’s a fintech-forward product strategy: recognize that a 30-year-old surgeon might not have $200K in the bank yet, but she’s a great credit risk with her $300K salary – so find a way to say “yes” on that mortgage or business line of credit. Similarly, consider offering professional services packages – a new attorney might appreciate a banking bundle with a low-interest refinancing for law school debt, a starter retirement account, and free financial planning sessions focused on managing a big new salary. The key is to design products for the realities of HENRYs: they may carry student debt, aspire to buy homes or start companies, and they absolutely want to enjoy life now (yes, they’ll still spend on that avocado toast and SoulCycle) even as they plan for tomorrow .

  3. Embrace Social Engagement and Community: To truly hook younger customers, go beyond the traditional banking app – make it interactive and even social. Millennials and Gen Z often get financial advice from friends, influencers, or Reddit rather than a banker in a suit. Smart institutions are finding ways to insert themselves into that advice loop in a credible, modern way. This is my bread and butter: my company, Wellthi, helps banks turn their apps into social finance platforms, complete with community feeds, goal-sharing groups, influencer-driven content, and referral rewards, all inside the banking app. The idea is to let young customers connect, learn, and celebrate wins together under your roof, rather than purely on outside social media. For example, a credit union could enable “money circles” or savings challenges among friends for common goals (first home, a group trip fund, seed capital for a startup) – tapping into the positive peer pressure that makes saving and investing feel fun instead of a chore. Financial institutions should also “stock up on industry influencers” and build an authentic community presence on platforms like TikTok and YouTube. This doesn’t mean just running ads; it means creating genuinely helpful, relatable content (e.g. short videos on building credit, or a day-in-the-life of a young entrepreneur client) and engaging the audience. If you can cultivate an engaged community of early-career professionals who see your brand as a source of wisdom and support, you’ll be top-of-mind when they’re ready for more sophisticated services.

  4. Provide Personalized Guidance (with a High-Tech Twist): By offering real-time education and advice in-app, banks can position themselves as the trusted filter. This could be as simple as an AI-driven chatbot that answers “dumb questions” 24/7 without judgment, or as advanced as matching young clients to a human financial coach via video chat for a free annual financial checkup. Crucially, personalize the guidance: use the data you have (with permission) to nudge them with relevant insights. If a customer’s transaction history shows a high rent expense, the app might prompt: “Hey, you’re paying $2,000 in rent – have you thought about our first-home buyers program?” accompanied by a calculator showing how much they’d need for a down payment. Or, if they get a raise, automatically suggest upping their 401(k) contribution or depositing the extra into an investment account. Remember, 67% of HENRYs earning $150K+ aren’t working with any wealth advisor yet. By proactively delivering bite-sized, just-in-time financial advice, you fill a void and build loyalty. Even simple features like gamified progress tracking, personalized budgets, or “financial health” scores can empower these users and keep them engaged. The bottom line: if you help a 26-year-old client feel in control and informed about their money, why would they later stray to a competitor when their portfolio hits seven figures?

❝

Fintech apps like Marygold & Co. let users create visual “money pools” for specific goals (each with a name, photo, and target amount) and then automatically invest those funds according to the goal’s timeframe. This kind of personalized, goal-based experience resonates with HENRYs and keeps them actively involved in their financial journey.

From Graduate School to Great Wealth: Stick With Them

Attracting Millennial and Gen Z HENRYs early is only half the battle – the real win is retaining them as their wealth grows. If you’ve onboarded a high-earning client during their MBA program or surgical residency, congratulations – you’ve caught a rising star. Now, stay relevant as their financial needs evolve. The key here is to anticipate and upscale your relationship over time:

Earn Loyalty Through Values and Service: Younger affluent clients are famously less loyal to financial institutions – they often juggle accounts across several banks and fintechs to get the best of each. To stay their primary partner, consistently demonstrate that you offer value, convenience, and share their values. This might involve ongoing financial education (e.g. invite them to exclusive webinars on advanced investing or tax planning), community involvement (align with causes they care about, such as student debt relief or entrepreneurship mentoring), and continuing to provide humanized service even as you automate. HENRYs want to know you appreciate their business before they’re rich. Small touches – a congratulations message when they hit a savings milestone, or proactively reaching out with a tailored offer when they get a promotion (which you noticed from their direct deposits) – reinforce that you see them as individuals, not account numbers.

Seamless Graduation to Wealth Management: Design a smooth pathway from basic services to full-fledged wealth management. As an example, Citibank years ago rewarded emerging affluent clients for using the bank’s portfolio tools, both to help grow their assets and to gather data that would later tailor wealth offerings to them . Similarly, your bank could automatically “upgrade” a HENRY’s access as they reach certain milestones. Perhaps a client starting a tech job with stock options gets introduced to an advisor who can help with equity compensation planning. Or as soon as a young lawyer’s investment account exceeds, say, $250K, you invite them to a complimentary wealth planning session and explain the next-tier services now available (trusts, private banking, etc.). The transition from mobile-app self-service to hybrid or human-assisted wealth management should feel like a natural progression – “we’ve been here for you at every stage, and we’re here now to handle the complex stuff.” Remember the warning from a fintech CEO: “These are people who will be clients of Merrill Lynch or Morgan Stanley in ten years… but if we bring private banking to them through tech now, they’ll never be those firms’ clients.” In short, win their loyalty early, and you won’t have to win it back later.

Measure and Adapt: Finally, treat this segment as the strategic priority it is. Track engagement metrics, solicit feedback often, and iterate your offerings. Millennials and Gen Z will tell you what’s working and what’s not – especially the digitally vocal ones. Use that data to refine your approach. If you notice your HENRY clients heavily use a certain budgeting tool but ignore another feature, dig into why. Continually evolve the experience (as one fintech exec quipped, keep trying on “new and exciting suits” in the fintech space) to match the changing expectations of your future high-net-worth clientele. Flexibility and innovation will signal to these customers that you’ll grow with them.

Sharpening early relationships with Millennial and Gen Z HENRYs is a long game – but one with immense payoff. 

Banks and credit unions that invest in digital-first, fintech-forward engagement today will become the financial partners of tomorrow’s doctors, lawyers, tech founders, and executives.

By prioritizing user-friendly tech, creative product strategy, trust-building practices, and personalized support, you can earn the loyalty of HENRYs while they’re still on the rise.

Do this successfully, and you won’t just manage their wealth in the future – you’ll have helped them create it, side by side. And that is the kind of loyalty and trust that money can’t buy, but will certainly grow.

—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.

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