New Research Highlights Gen Z’s Preference for BNPL, Need for Enhanced Digital Banking Features to Support Holiday Spending and Security Concerns
Glassbox, the premier provider of AI-fueled customer intelligence solutions supporting 60% of U.S. banks, unveiled research on consumer holiday spending trends, showing a surge in Buy-Now-Pay-Later (BNPL) use among Gen Z and highlighting opportunities for banks to enhance digital banking and security services to meet evolving consumer demands.
“With the end of 2024 marked by election concerns, a condensed holiday season, economic uncertainty, and growing cybersecurity threats, consumers are facing unprecedented financial pressures”
Holiday Spending and BNPL Trends
According to the Glassbox study, Gen Z is expected to increase holiday spending significantly this season, with Buy-Now-Pay-Later (BNPL) payment options playing a central role. Half of Gen Z respondents indicated they will rely on BNPL frequently, though the potential for accumulating debt underscores a need for banks to take proactive steps to help young consumers manage spending responsibly.
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Customer Expectations and Bank Performance
The research also shows that nearly a third of Millennials (29%) and Gen Z (30%) feel their banks are not meeting their service expectations. Consumers are calling for advanced digital banking tools, including:
- Enhanced transaction monitoring to improve transparency
- Virtual credit cards to enable safer online shopping
- Holiday-specific budgeting tools to help manage seasonal spending
Security and Support Demands
The holiday season brings heightened concerns around security, with more than half of all consumers expressing caution regarding online banking. The research reveals that 55% of respondents want stronger mobile security features, while 45% are looking for real-time spending alerts and budgeting tools. Additionally, 21% of Gen Z expressed a desire for temporary spending limits to stay on track financially during the holidays.
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“With the end of 2024 marked by election concerns, a condensed holiday season, economic uncertainty, and growing cybersecurity threats, consumers are facing unprecedented financial pressures,” said Michelle Suzuki, Chief Marketing Officer at Glassbox. “This research highlights a clear need for banks to engage with customers empathetically and proactively provide enhanced digital support through the holiday season.”
Joe Crawford, Global Head of Technology at Glassbox, added, “Banks are in a unique position to leverage the right technology to deliver more personalized, secure, and supportive banking experiences—an approach that can resonate deeply with younger generations and help retain their loyalty in the long run.”
As Gen Z’s holiday shopping kicks off, Glassbox’s research signals an opportunity for banks to innovate their digital offerings, prioritizing security, personalized support, and advanced budgeting tools to better serve the needs of consumers.