The ‘Great Wealth Transfer’ and gen Z brand promiscuity will reshape loyalty in 2025

As 2025 approaches, this dynamic is shifting. Two powerful forces – the Great Wealth Transfer and gen Z’s declining loyalty to traditional brands, are converging to reshape these legacy-driven industries. With the former, over $68tn in wealth is being passed from baby boomers to younger generations, with financial institutions at the heart of this historic transition. The latter: simultaneously, gen Z, with their brand-agnostic behavior and values-driven mindset, is emerging as a significant market force.

The result of these twin trends? Legacy brands can no longer rely on inherited loyalty. They must actively earn the trust of a new, more discerning generation. The year ahead represents a tipping point, as financial institutions, healthcare providers, and other legacy industries grapple with the challenge, and opportunity, of earning loyalty amid this generational shift.

Here are four big bets for how loyalty will evolve in 2025 and what it will take for brands to capture the allegiance of this next generation.

1. Bridging the financial literacy gap

The Great Wealth Transfer is exposing a significant readiness problem. Nearly half of wealthy families lack basic estate plans, according to Bank of America Private Bank. And a survey by Citizens Bank found that 72% of Americans feel unprepared to handle a significant inheritance. Gen Z faces a double challenge: they are both financially cautious and undereducated in long-term financial planning. This lack of preparedness poses a threat to wealth preservation and an opportunity for financial institutions to step in.

In 2025, banks and financial advisors must focus on educational experiences to earn trust and loyalty from younger generations. Expect more gamified tools, interactive workshops, and accessible resources aimed at building financial literacy. Wealth managers will play a key role in facilitating cross-generational conversations, fostering trust not just with inheritors but with their parents, too.

2. The rise of fintech and personalized banking

Gen Z’s expectations for financial services differ starkly from their predecessors’. They demand digital-first solutions, transparency, and personalization qualities that many legacy institutions struggle to provide. Open banking is transforming the financial ecosystem, allowing third-party providers to offer tailored solutions to empower consumers. Fintech brands are already capitalizing on this shift, designing platforms that offer custom experiences, gamification, and loyalty programs built for a values-driven generation.

Traditional banks will need to innovate to compete with fintech disruptors. Capturing the hearts and wallets of Gen Z requires embracing hyper-personalization, using data to create bespoke banking experiences. Gamified savings challenges, rewards tied to social impact, and real-time financial health insights will become table stakes for generating loyalty.

3. Grassroots influence: A shift toward authentic connections

Historically, younger generations turned to parents or advertising for financial guidance. Gen Z, however, increasingly looks to social media for lessons on investing and money management. But there’s a catch: they’re growing increasingly skeptical of influencers, with nearly half of Gen Z describing paid partnerships as “insincere” or “annoying.” Instead, they gravitate toward lo-fi recommendations from peers, niche communities, or unpolished testimonials.

To excel in 2025, brands must deliver human-centered experiences. Financial institutions will lean into one-to-one connections through micro-communities, independent advisors, and unfiltered content. Social media strategies that prioritize inclusive storytelling over glossy campaigns will help brands build lasting relationships.

4. Ethical finance as a loyalty driver

Gen Z’s values-driven mindset is reshaping industries, and finance is no exception. This generation expects brands to align with their ethical priorities. As a result, Environmental, Social, and Governance (ESG) investing is becoming more than a trend; it’s a requirement. Institutions that ignore this shift risk alienating a generation that sees money as a tool for change.

Ethical finance offerings will be a core strategy for capturing loyalty. Banks will highlight ESG-focused funds and provide transparent reporting on the impact of investments. Younger generations will reward institutions that deliver on a genuine commitment to responsible investing.

A generational inheritance

The convergence of the Great Wealth Transfer and gen Z’s brand promiscuity signals the end of an era where loyalty could be inherited. Loyalty must now be earned – through personalization, and a deep understanding of the unique needs across the generations involved in this historic shift.

The institutions that will rise in this evolving landscape are those that proactively build trust across generations. This will require a delicate balance: crafting connected approaches that foster dialogue, align values, and ensure a seamless transfer of financial relationships. By successfully bridging these generational divides, brands can pivot this challenge into a bold opportunity to invest in a new future of loyalty.