Banking products Gen Z-focused fintechs live and die by social media. Taylor Krebs remembers her friends’ reactions when she started using Step, a banking app that caters to Generation Z. Krebs, a ninth-grader, had early access to Step because the company’s CEO, CJ MacDonald, is a close family friend.
The startup offers a secured credit card and the ability to send and receive money through its app. For Krebs, it means her parents can fund her account in minutes so she doesn’t have to ask for cash every time she goes out. It didn’t take long for Step to catch her friends’ eyes, as she could use Apple Pay by connecting her Step Card.
“Everyone would be like, ‘Whoa, that’s so cool. You don’t have to ask your parents for money?'” she said, adding that all her friends have now signed up for the app.
That word-of-mouth growth is exactly what Step is aiming for. Gen Z, generally defined as people who were born between the mid-1990s and 2010, is the target of a growing number of banking startups looking to establish loyalty among a group set to become the largest segment of consumers in the US this decade.