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Insight of the Day: People can’t buy cars and houses without a financial identity footprint—but a third of Gen Zers are ‘digital ghosts,’ and too shy to begin banking

The article "People can’t buy cars and houses without a financial identity footprint—but a third of Gen Zers are ‘digital ghosts,’ and too shy to begin banking" by Sunny Nagpaul highlights a significant issue among Generation Z: a substantial portion of this demographic avoids traditional banking, leading to their status as "digital ghosts." This term describes individuals without a financial identity footprint, making it difficult for them to access credit cards, loans, and mortgages necessary for major purchases like cars and houses​ 

Key Points:

  1. Reluctance to Use Traditional Banking: Many Gen Zers avoid traditional banks due to shyness, distrust, and a preference for digital solutions. They often rely on mobile payment systems and peer-to-peer (P2P) platforms like Venmo and Zelle instead of conventional banking services​ 

  2. Lack of Financial Identity: Without a financial footprint, these "digital ghosts" face challenges in accessing essential financial services. This can hinder their ability to make significant life purchases and investments, impacting their financial independence and stability​ 

  3. Alternative Financial Habits: Gen Z tends to seek financial advice from family and social media rather than traditional banking channels. Their comfort with digital technology makes them more likely to trust and use non-traditional financial services​


  1. For Gen Z: The absence of a financial identity can limit their ability to secure loans and credit, crucial for major purchases like cars and homes. This could delay their financial independence and life milestones​ (

  2. For the Financial Industry: Traditional banks and credit unions face the challenge of attracting and retaining Gen Z customers. They must adapt by offering more user-friendly digital services and mobile banking solutions that cater to the preferences of this tech-savvy generation​ 

  3. Need for Financial Education: There is a pressing need for financial education tailored to Gen Z. Financial institutions and educational bodies must work together to build trust and provide the necessary knowledge to help this demographic navigate the financial landscape​

In conclusion, addressing the reluctance of Gen Z to engage with traditional banking requires innovative digital solutions and targeted financial education. This approach can help integrate Gen Z into the financial system, ensuring they can access essential financial services and achieve financial independence.

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