Digital banking now drives customer loyalty, study finds

Alkami has published its 2026 Generational Trends in Digital Banking study, conducted with The Centre for Generational Kinetics.

The study surveyed 1,500 bank account holders in the United States aged 22 to 65 who actively use digital banking. The findings suggest digital experience has become a central factor in how consumers choose and keep a primary financial provider.

Among the headline figures, 85% of respondents said the quality of a digital banking experience is essential or important when considering a new main provider. About half said they would switch providers for a much better digital experience, while 31% said they had already opened an account with a new institution after a poor one.

The data also points to clear differences between age groups. Gen Z respondents were most focused on clarity and guidance, millennials on coordination across money management tasks, Gen X on control and access to support, and baby boomers on protection against fraud and misuse of data.

For regional and community financial institutions, the research highlights weaker performance on personal relevance. Only 38% of their account holders said product recommendations had become more relevant over the past year, compared with 50% at major national institutions and 51% at online-only providers.

That gap matters because consumers appear open to more tailored digital services if they see a direct benefit. The study found that 44% of digital banking users wish their primary provider did a better job of anticipating their financial needs and goals.

Artificial intelligence also featured prominently in the results. Just over half (51%) said they were comfortable with AI processing their financial data if it improved their experience. Fraud prevention, time-saving and better financial decision-making were the main areas of acceptance.

Generational split

The survey suggests younger and older customers are not divided simply by channel preference, such as mobile versus branch use. Instead, expectations appear to reflect a combination of life stage, financial complexity and confidence with technology.

Gen Z stood out for seeking help in understanding money matters, with 57% saying they look to their primary provider for financial education. Among millennials, 65% said they were comfortable with AI-enabled experiences that help them manage spending, security and day-to-day money matters.

Gen X respondents placed a high value on support and autonomy. The study found that 91% said phone support is important, while 87% prioritised online virtual assistance.

Baby boomers placed the strongest emphasis on safety. Some 92% said protection of their data from fraudsters and hackers is important to their digital banking experience.

Marla Pieton commented on the findings.

"Preferences are oftentimes reduced to stereotypes where younger generations only want mobile, or older generations only want to visit a branch for on-site service. This year's research tells a more insightful story, where generational differences reflect a variety of life stages, financial complexity and comfort with technology. Financial institutions that understand those differences can design more relevant digital experiences, guidance and offers across the entire lifecycle of the banking journey," said Marla Pieton, Vice President, Brand, Public Relations and Influencer Marketing, Alkami.

Competitive pressure

The findings come as banks and credit unions face pressure from large national lenders, online-only challengers and financial technology groups. In that environment, digital service is increasingly part of the day-to-day customer relationship rather than a secondary access point.

The report argues that consumers may keep a longstanding relationship with one bank or credit union while using other providers for specific products or services that better match their needs. As a result, loyalty may no longer guarantee share of wallet.

Jason Dorsey said the results show institutions need to combine broad generational patterns with individual customer data.

"Consumers are not looking for a one-size-fits-all banking experience. A primary banking relationship is no longer a promise of exclusivity. Consumers may stay with the same bank or credit union for years while spreading their financial activity across providers that better meet specific needs. Financial institutions that use these generational patterns as a starting point, then pair them with account holder data, can become more relevant in the moments that shape financial behaviors and stay relevant," said Jason Dorsey, President, The Centre for Generational Kinetics.

The study is now in its fourth year and was weighted to the 2020 US Census for age, gender, region and ethnicity. Because all participants were active digital banking users, the results are narrowly focused on consumers who already engage with banks and credit unions through digital channels.

For smaller financial institutions, the findings point to a difficult balancing act: matching the digital standards set by larger rivals while also trying to make services feel more personal. The 38% score on improving recommendation relevance suggests many account holders still do not see that personal tailoring in practice.