Neobanks are intensifying their competition with traditional banks to capture the growing Gen Z market, focusing on innovative digital solutions and tailored financial products. This shift reflects a broader trend in the banking industry where younger consumers prioritize flexibility and technology in their banking choices. As neobanks refine their strategies, traditional banks may need to adapt to retain their market share among this demographic.

A significant 74% of banking customers report feeling indifferent or dissatisfied with their banking experiences, leading to potential attrition. Traditional banks face challenges in adapting to new-age customer engagement models and leveraging data effectively, often resulting in friction and frustration for customers. To remain competitive, banks must shift to customer-centric approaches and enhance their service delivery.