$84.4 trillion of generational wealth is not a hypothetical. It’s the forecasted amount of wealth moving from Boomers to Millennials and Gen Z by 2045, and it’s a shift that will redefine the financial landscape for every bank and credit union.
For decades, the deposit foundation of most financial institutions (FIs) has been built on Boomer trust, loyalty, and preference for in-person relationships. But those account holders are retiring. Their successors, typically “Zillennials,” are digital dynamos, values driven, not easily swayed by FI branding, and inclined to keep their money with a fintech as much or more than a traditional FI.
Why would your institution risk falling out of favor when there’s this much at stake?
SMB Deposits Are at Risk
This generational shift is more than a consumer banking problem. Business banking is facing its own reckoning.
A large portion of small and mid-sized businesses are family run. And here’s the kicker – 54% of small-business owners say they don’t have a formal succession plan. Broader estimates say up to 60% are operating without any documented strategy at all.
When ownership changes hands, the banking relationship is often one of the first things to go. If the next-gen leader doesn’t feel connected to your institution – doesn’t see it as digitally competent, strategically aligned, or worth their loyalty – you’re out.
One day, you’re managing a multi-account relationship, the next, you’re closing accounts and trying to recover from the attrition.
How Forward-Looking FIs Are Responding
Forward-looking banks and credit unions aren’t waiting for the hand-off to happen, they’re proactively building solutions that resonate with this rising generation of depositors and decision-makers.
Take the case of a $50B+ regional commercial bank. They were heavily business-focused, but saw the need to diversify. In just 18 months, the bank launched a white-labeled, consumer-facing high-yield savings product and grew more than $3 billion in new deposits. Nearly 70% of those deposits came from customers leaving the Top 10 banks.
That’s the power of hyper targeting on an audience, whether that’s a new footprint or a persona, such as SMB owners.
Three Adaptation Plays That Work
1. Launch a digital-first savings product that reflects changing expectations.
Millennials and Gen Z expect intuitive, self-directed, mobile-first banking. If your savings experience feels dated or difficult, they’ll swipe past it.
A branded, high-yield savings product signals that your institution is serious about meeting modern expectations. And this doesn’t just serve individual savers – it also attracts business owners who manage both personal and professional finances on the go.
High Yield Savings by Plinqit, for example, has seen a 70% sign-up to fund rate, with 90% of those who link accounts actively funding them. It’s a simple, scalable way to future-proof your deposit base.
2. Court the next generation of SMB owners through liquidity and rate strategy.
As economic pressure mounts, SMBs are looking for safe places to park cash – places that offer liquidity without sacrificing yield.
This is your moment to provide differentiated value.
Offer competitively priced, flexible deposit products tailored to the unique needs of SMBs navigating generational transitions. Plinqit’s upcoming SMB-tailored high-yield product is purpose-built for this audience, combining ease of use with better rates on idle funds.
As the face of business leadership gets younger and more digitally inclined, so should your product lineup.
3. Build future-proof relationships before the hand-off happens.
Relationship retention in the Great Wealth Transfer requires thoughtful consideration of your financial institution’s objectives so that you can be proactive and nimble.
Too many institutions treat this as an afterthought. But the banks and credit unions that win this transition will be the ones who’ve already earned trust with next-gen leaders through education, digital tools, and strategic outreach.
The fact is that wealth is changing hands, and much of that belongs to SMBs. The question is, will those deposits stay in your hands?
