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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


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