FinTechs Are Taking a Bigger Share Of Young Consumers’ New Checking Accounts
By CU Today Staff —
TROY, Mich.—Online banks and fintechs are capturing a disproportionately large share of new checking accounts opened by younger Americans, with Millennials and Gen Z increasingly favoring providers that give them real-time information and help them avoid unexpected fees, according to a new JD Power study.
Online banks and fintechs hold 20% of existing primary checking relationships among the two generations but captured 28% of newly opened accounts, JD Power found. The shift is particularly important because Millennials and Gen Z now account for 67% of all new primary checking accounts in the United States.
The inaugural JD Power U.S. Millennial & Gen Z Checking Satisfaction Study found online banks and fintechs also outperform traditional institutions on satisfaction. Among Millennials, online banks and FinTechs averaged 699 on a 1,000-point scale, compared with 672 for national banks and 617 for regional banks. Gen Z satisfaction with online banks and fintechs averaged 701.
“Millennials and Gen Z don’t want checking accounts that simply store and move money. They increasingly expect them to function as a financial command center, giving them a clear, real-time view of their money, helping them avoid unexpected fees and providing useful information that helps them stay in control,” said Paul McAdam, senior director of financial services at JD Power. “The providers performing particularly well with these customers are delivering on those expectations by making the checking experience more immediate, predictable and useful.”
JD Power also found financial institutions may be able to improve satisfaction without developing new products. Of 32 key performance indicators measured, 14 depend on customers simply being aware that a feature is available. Among the opportunities identified were better communication about credit-building, budgeting, financial planning, cash-back and financial-education tools. Just 8% of younger customers said they never read checking-account communications, while satisfaction among those who always read emails was 90 points higher than among those who read them sometimes or never.
Among national banks, Chase ranked highest in satisfaction with both Millennials and Gen Z. American Express led online banks and fintechs among Millennials, while OnePay ranked highest among Gen Z. The study is based on responses from 23,386 U.S. adults with active checking or spending accounts and was fielded from June through July 2026.
Originally reported by CU Today.