The data: Subscription coverage could be a particularly effective acquisition tool for banks seeking younger customers.

• 48% of Gen Zers and half of millennials would switch banks or financial providers for free access to their favorite subscriptions, according to Bango. 
• That compares with 31% of US consumers overall and 36% of Gen Xers.

Why it matters: Banks have relied on promotions like cash bonuses to attract new accountholders. But subscription coverage may be more persuasive for younger customers because its value is concrete and recurring. 

Paying for a streaming, fitness, or delivery service eliminates a monthly expense. It may also keep the bank’s value visible after the account-opening promotion ends.

Zooming out: Thirty-seven percent of Gen Zers had either decided to switch banks or were considering doing so in the next 12 months, according to EMARKETER survey data—same with 27.4% of millennials, 18.4% of Gen Xers, and just 5.4% among baby boomers.

Younger consumers were also less likely to cite satisfaction as a reason for staying: 53.1% of Gen Zers and 56.3% of millennials said so, compared with 77.6% of boomers.

EMARKETER measured near-term switching intentions, while Bango tested a hypothetical incentive. But taken together, they indicate that younger customers are both more open to moving and receptive to an offer that delivers recognizable everyday savings.

Implications for banks: Subscription coverage or similar perks could be a differentiator. EMARKETER’s survey found that high fees, poor customer service, data-security concerns, and unreliable digital performance all ranked ahead of a poor rewards program for Gen Zers considering a switch.

Free subscriptions also aren’t feasible or distinctive for every bank. Its economics may work better for larger institutions, or selected customer segments like paid account tiers.

The broader lesson is to identify perks that solve a visible problem or replace an existing expense for a target audience. Banks could offer a choice of benefits, negotiate discounts rather than covering the full cost, or reserve premium subscriptions for certain account tiers.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.