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Gen Z Banking & Financial Card Issuance

Re-posted with permission from Diamond Business Services and edited.

The Shifting Landscape of Today’s Banking Customers

With over 6 different generations currently alive in this country, each has their own idea of how their relationship with a financial institution should be managed. Perhaps this current generation, “Generation Z”, is the most unique to define…and you had better be prepared to meet their banking needs.

Many financial institutions overlooked “Millennials”. Most waited too long to go after them and then were frustrated when they banked with the financial institution down the street. Granted, the thinking was that those teenagers were not profitable, so they were easily dismissed. But Millennial adults are profitable now!

If there is a lesson that banks and credit unions can learn from our Millennial friends, it’s that retail financial institutions must start building relationships with consumers while they are still young or they risk missing out on opportunities to help shape their financial perspectives while building brand preference. If the Millennial train passed you by, here is your shot at redemption. Say “hello” to Gen Z banking.

According to The Financial Brand, virtually everyone in Gen Z uses social media at least once a week. They are willing to get financial services from a technology company and they embrace alternative payment methods like person-to-person (P2P) services. Within Gen Z banking there are three different types of customers:

  1. CONVENTIONALS (34%) – They like the face-to-face interaction that they can get at traditional financial institutions. Conventionals are even distrustful of technology companies encroaching into financial services. Financial instant issuance (FII) was designed for them!
  2. DIGITALS (37%) – Like conventionals, digitals like traditional banks and credit unions, but prefer to interact digitally. They don’t see tech companies replacing their relationship with their preferred financial institutions. They maybe a 50/50 fit for FII…but they prefer to work online and will be moving more in that direction. Your opportunity to work with them face-to-face lessens daily.
  3. PIONEERS (28%) – They are more accepting of technology companies as financial providers and more distrustful of banks and credit unions. They will use traditional financial institutions only when they have to. How do we change that mentality? Worrying about “Top of Wallet” is no longer fits this group, so grabbing a bit of Gen Z bandwidth is the new goal. They don’t care about the number of branches or the newly resigned lobbies, but rather how easily they can access and use funds, and what perks they can get along the way.


So how do you get your card in their wallet, or on their phone, and minimize your cost, as well as expedite delivery times? How will you reach the 28% of Gen Z banking pioneers who may never set foot in your building? Are you willing to let 28% of your future revenue drift away to online-only institutions?

Instant Issuance versus Central Card Issuance

What are some ways that you can be better prepared? FII meets some of your clients’ needs, but have you thought about the options that a Centralized Card Issuance solution can offer?

  • Avoid Outsourcing Fees – Adding a new card type to your portfolio may not be the answer. Rollout quantities might be minimal, but the cost to outsource them to a service bureau could cut into your potential revenue with all the production and personalization fees, plus possible overnight shipping, not to mention potentially long lead times. Having your own central issuance solution means that you can produce cards at whatever rate matches your real-time demand.
  • Increased Marketing Power – Personalization of payroll and HSA/FSA cards allowing partner cards, like those with a mass retailer or educational institution, to be co-branded. Imagine the marketing power you have when a customer company can have their own logo on their member cards.
  • Unique Card Materials & Designs – Perhaps you want to roll out metal, clear or even vertically oriented cards. Central issuance can give you the flexibility to do just that.
  • Gift or Pre-paid Cards – imagine saving money by ordering “blank” Artista cards and then personalizing them with the season or event you want to market to. Consider a company who wants to give their employees a bonus or holiday card – being able to put their logo on the card all the while utilizing 1 BIN could be a game changer!
  • Digital Plus Physical Service – You want to create an online branch that allows for account opening and card ordering, but can still meet “Know Your Customer” (KYC) requirements. You can handle all the online details and regulatory elements, but how do you manage the cards? A back office central issuance solution could be the answer.
  • Mergers & Acquisitions – We see it happen every day. Managing multiple card programs can be exhausting and costly, but rolling them into one might be the perfect fit. You can have the ability to personalize stock to the desired market and can work towards a uniform stock and chip type to take advantage of larger quantity discounts.
  • Local Support – Want to increase your card portfolio offerings, minimize the cost of issuer processing and stay away from lengthy, expensive contracts? Or perhaps you just want to work with an issuing processor who is truly relationship-minded or work with a personalization expert locally who can assist with…we have the perfect solution.


No matter which of the above points might peak your interest, there is no expense in exploring a central issuance solution and learning if it is a fit for your financial institution. Not finding a way to tap into the 28% of Gen Z that may never set foot into a brick and mortar location is a cost your bank or credit union may not be able to pay.

Expert Advice & Local Solutions

Let your local ISG financial card issuance expert help you continue to grow for your current customers today and for Generation Z and beyond. Talk to us about your card issuance needs and let us share ideas that can get you where your financial institutions wants to be. You can also take a closer look at the financial central card issuance solutions offered by ISG members.

Contact us today!

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