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Building Bank Loyalty: What Students are Learning About Investing

Banks play a pivotal role in many major milestones in a customer’s journey—first jobs, saving for big goals, taking charge of their future—but how do you move from being a transactional partner to building a true relationship, grounded in loyalty? That’s the goal for many financial institutions. Here at Bumped, we’ve been designing a new loyalty platform that helps build deeper connections, drive the customer behaviors that matter most, and introduce a bank’s customers to the right products at key moments, in the most compelling way.

According to the Financial Post, this is the year that Generation Z (born between 1995 and 2015) becomes the biggest consumer cohort globally. Even though many are still in school, that group—many of whom are students—have about $143 billion in spending power annually. And that’s just here in the United States.

Thinking a step beyond spending — these students may also have a massive investing potential, but it’s a matter of finding the paths to market that resonate most with them.

Gen Z is immensely concerned with social responsibility—something likely to challenge banks more than with past generations. The majority of students say they want to put their money toward what they believe in. 84 percent of Gen Z plan to invest this way in the future. Nearly one in three Gen Z investors (31 percent) said they would be willing to allocate 50 percent or more of their investment portfolio to socially responsible or impact investments. Their beliefs drive their consumer activities, which means that businesses will need to consider new ways to reach them and new ways to satisfy these strong, socially-minded spending inclinations.

Fear not, though! Banks are uniquely poised to connect these people with investments in the brands they care about.

That’s why we’re so excited about the possibilities with Bumped and this rising generation. This is a group that wants to invest in what matters to them. They will make financial decisions based on whether their beliefs match up with a business. They’ll vote with their wallets—digital ones or otherwise. And while they understand the opportunity investing can offer, we see the opportunity for banks to deliver on those expectations.

Because while they have the interest, desire, and plans to invest, they will also have to prioritize saving and paying down debt before they get into the market. Take for example, that college tuition has more than doubled since the 1980s. As a result, student-loan debt has reached record levels — the national student-debt total is more than $1.5 trillion, and the average student-loan debt per graduating student in 2018 who took out loans is $29,800, according to Student Loan Hero.

What if you were able to support these student in opening their first brokerage accounts and getting shares of stock in the brands they care about? Helping them build their confidence as investors, without having to take capital away from building the other pieces of their financial wellness.

With Bumped, banks can reward customers in stock along the entire financial journey. When customers spend with the brands they love, fractional shares of stock as a reward can remind them (with every swipe) that their bank is cheering them on.

Learn how banks can empower students in their investment journeys at BumpedforBrands.com.

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© 2021 Bumped Inc. All rights reserved. Use the following links to access Bumped Financial LLC's Privacy Policy, Terms of Use, Customer Agreement, and other Legal Disclosures.

The Bumped app and website are operated by Bumped, Inc. Brokerage services are provided by Bumped Financial LLC, member FINRA ↗/SIPC ↗. More about Bumped Financial LLC on FINRA’s FINRA BrokerCheck website ↗

Investing in securities involves risk, including possible loss of principal: Not FDIC Insured • No Bank Guarantee • May Lose Value. Past performance is not a guarantee of future results. Nothing on this site should be construed as an offer to purchase or sell securities.

Any market, economic and / or performance data shown is for hypothetical and illustrative purposes only. Data does not represent actual results.  Participation is only for investors who understand and agree to the risks inherent in their Bumped Accounts. Only qualifying purchases made according to the terms and conditions are eligible for stock rewards. Bumped does not charge brokerage fees. Bumped reserves the right to restrict or revoke any and all offers at any time.

Brands and brand logos shown are for illustrative purposes only and do not indicate specific offers from, or guarantees to participate with, any of the merchants shown. Offers and participating brands are subject to change without notice.

Investors receive shares of ETFs as rewards. Investors should consider their investment objectives, risks, carefully before investing. This and other information are found in the fund prospectus. Please read the prospectus carefully before you choose to invest.

Rewards are accrued for investment after qualifying purchases, but may be reversed if the qualifying transaction is later reversed. Bumped does not assume the risk of market movements for returned items or disqualified transactions. 

Bumped Inc., its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.

A few notes on fractional shares: they’re typically not transferable between brokerage firms. If you want to transfer your Bumped account, you may have to sell your fractional shares first. Fractional shares can’t be put into certificate form or physically mailed, nor do they have voting rights.