Competitiveness in the Banking Services Sector Today from the Perspective of Generation Z

Justyna Rybacka

doi:10.18778/2391-6478.3.51.05

Authors

Justyna Rybacka WSB Merito University in Gdańsk https://orcid.org/0009-0005-8559-3443

DOI:

https://doi.org/10.18778/2391-6478.3.51.05

Keywords:

banking services, bank, Generation Z, competition

Abstract

The purpose of the article. In order to respond rapidly to changing customer demands and technological advances, the modern banking services market must adapt quickly. Financial institutions offering similar products and services pose a threat to the banking sector. In order to adapt to market demands, banks must leverage their potential, select appropriate strategies and competitive tools as well as develop offerings that will be well received by customers, enabling them to achieve a strong competitive position. It is also crucial for banks to adapt to the requirements and expectations of Generation Z, who are characterised by impatience and an expectation of quick responses. They are a fully digital group. Social media significantly influences the decisions of its members. This study aimed to identify the factors influencing the competitiveness of banks in Poland from the perspective of Generation Z customers.

Methodology. The empirical research conducted for this study took the form of a quantitative survey. This was based on a questionnaire administered to a sample of 500 people. The study aimed to assess the factors influencing the competitiveness of banks in Poland from the perspective of Generation Z, and to identify the most important factors when choosing a bank. The focus was on banks operating in Poland.

Results of the research. The survey results indicated that Generation Z values new technologies above all else when interacting with a bank, while price is not a key factor for them. At the same time, the development of technology-based services continues to require support in the form of instructions on the bank’s website or assistance from advisors and employees, in line with customer expectations. Therefore, questions and complaints about banking services raised by this group of young people should be addressed promptly, in line with their preferences. The survey results also show that traditional distribution channels do not appeal to this group of customers.

Downloads

Download data is not yet available.

References

Ahmed, F., Hussain, A., Khan, S. N., Malik, A. H., Asim, M., Ahmad, S., & El-Affendi, M. (2024). Digital risk and financial inclusion: Balance between auxiliary innovation and protecting digital banking customers. Risks, 12(8), Art. 133. https://doi.org/10.3390/risks12080133.

Akinbowale, O. E., Mashigo, P., & Zerihun, M. F. (2023). Analysis of cyberfraud in the South African banking industry: A multiple regression approach. Journal of Financial Crime, 31(4), 952–973. https://doi.org/10.1108/JFC-04-2023-0094.

Aloulou, M., Grati, R., Al-Qudah, A. A., & Al-Okaily, M. (2023). Does FinTech adoption increase the diffusion rate of digital financial inclusion? A study of the banking industry sector. Journal of Financial Reporting and Accounting, 22(2), 289–307. https://doi.org/10.1108/JFRA-05-2023-0224.

Aniszewska G. (2015), Zmiany pokoleniowe a decyzje i wybory konsumenckie [Generational changes and consumer decisions and choices]. Marketing i Rynek, (1), 2–7.

Arefiev, S., Serpukhov, M., Blahun, I., Varava, L., Baula, O., & Zhurbenko, N. (2025). Security-oriented business model of financial management of competitive strategy of innovative development of banking system entities. Financial and Credit Activity Problems of Theory and Practice, 3(62), 26–43. https://doi.org/10.55643/fcaptp.3.62.2025.4793.

Arner, D. W., Barberis, J. N., & Buckley, R. P. (2016). The evolution of FinTech: A new post-crisis paradigm? Georgetown Journal of International Law, 47(4), 1345–1393.

Aziz, A., & Naima, U. (2021). Rethinking digital financial inclusion: Evidence from Bangladesh. Technology in Society, 64, Art. 101509. https://doi.org/10.1016/j.techsoc.2020.101509.

Baker, H., Kaddumi, T. A., Nassar, M. D., & Muqattash, R. S. (2023). Impact of financial technology on improvement of banks’ financial performance. Journal of Risk and Financial Management, 16(4), Art. 230. https://doi.org/10.3390/jrfm16040230.

Barroso, M., & Laborda, J. (2022). Digital transformation and the emergence of the FinTech sector: Systematic literature review. Digital Business, 2(2), Art. 100028. https://doi.org/10.1016/j.digbus.2022.100028.

Beck, T., De Jonghe, O., & Schepens, G. (2011). Bank competition and stability: Reconciling conflicting empirical evidence (Paolo Baffi Centre Research Paper No. 2011-4150). https://doi.org/10.2139/ssrn.1884150.

Berger, A. N., Demirgüç-Kunt, A., Levine, R., & Haubrich, J. G. (2004). Bank concentration and competition: An evolution in the making. Journal of Money, Credit and Banking, 36(3, Part 2), 433–451. https://doi.org/10.1353/mcb.2004.0040.

Bilan, Y., Rubanov, P., Vasylieva, T. A., & Lyeonov, S. (2019). The influence of Industry 4.0 on financial services: Determinants of alternative finance development. Polish Journal of Management Studies, 19(1), 70–93. https://doi.org/10.17512/pjms.2019.19.1.06.

Bilgihan, A., Leong, A. M. W., Okumus, F., & Bai, J. (2024). Proposing a metaverse engagement model for brand development. Journal of Retailing and Consumer Services, 78, Art. 103781. https://doi.org/10.1016/j.jretconser.2024.103781.

Całek, A. (2021). Pokolenie Z – próba diagnozy [Generation Z – an attempt at diagnosis]. Zeszyty Prasoznawcze, 64(1), 105–108.

Capiga, M. (2008). Bankowość [Banking]. Wydawnictwo Uniwersytetu Ekonomicznego w Katowicach.

Cetorelli, N., & Strahan, P. E. (2006). Finance as a barrier to entry: Bank competition and industry structure in local U.S. markets. The Journal of Finance, 61(1), 437–461. https://doi.org/10.1111/j.1540-6261.2006.00841.x.

Cherkaoui, K. (2020). La digitalisation des services bancaires, source de rentabilité: Le cas des banques marocaines. Revue Internationale du Chercheur, 1(1), 269–283.

Corbet, S., Hou, Y. (Greg), Hu, Y., Oxley, L., & Tang, M. (2024). Do financial innovations influence bank performance? Evidence from China. Studies in Economics and Finance, 41(2), 241–267. https://doi.org/10.1108/SEF-02-2022-0119.

Cuadros-Solas, P. J., Cubillas, E., & Salvador, C. (2023). Does alternative digital lending affect bank performance? Cross-country and bank-level evidence. International Review of Financial Analysis, 90, Art. 102873. https://doi.org/10.1016/j.irfa.2023.102873.

Del Sarto, N., Bocchialini, E., Gai, L., & Ielasi, F. (2025). Digital banking: How social media is shaping the game. Qualitative Research in Financial Markets, 17(2), 348–369. https://doi.org/10.1108/QRFM-12-2023-0314.

Dynata. (2022). Share of adults worldwide who are interested in trying select types of metaverse experiences as of February 2022, by generation [Graph]. Statista. https://www.statista.com/statistics/1305147/interest-in-trying-metaverse-experiences-worldwide-generation.

El Achari, S., & Hattab, S. (2024). L’impact de la transformation digitale sur le secteur bancaire. Journal of Economics, Finance and Management, 3(3), 873–886. https://doi.org/10.5281/zenodo.12723055.

Flejterski, S., & Świecka, B. (eds.). (2008). Elementy finansów i bankowości [Elements of finance and banking] (wyd. 3). CeDeWu.

Fromm, J. (2024, November 22). Marketing to Gen Z in 2024: 7 undeniable truths for brand leaders. Forbes. https://www.forbes.com/sites/jefffromm/2024/11/22/marketing-to-gen-z-in-2024-seven-undeniable-truths-for-brand-leaders.

Ghosh, P., & Golder, U. (2026). Exploring the effects of FinTech adoption on traditional banking: A systematic literature review on opportunities and challenges. Digital Business, 6(1), Art. 100163. https://doi.org/10.1016/j.digbus.2026.100163.

Gomber, P., Koch, J.-A., & Siering, M. (2017). Digital finance and FinTech: Current research and future research directions. Journal of Business Economics, 87(5), 537–580. https://doi.org/10.1007/s11573-017-0852-x.

Jack, W., & Suri, T. (2014). Risk sharing and transactions costs: Evidence from Kenya’s mobile money revolution. American Economic Review, 104(1), 183–223. https://doi.org/10.1257/aer.104.1.183.

Jaworski, W. L. (1998). Banki polskie – warunki przetrwania [Polish banks – conditions for survival]. W Finanse i bankowość – dźwignie wzrostu gospodarczego (t. 1, pp. 283–291). Uniwersytet Szczeciński.

Jia, K., He, Y., & Mohsin, M. (2023). Digital financial and banking competition network: Evidence from China. Frontiers in Psychology, 13, Article 1104120. https://doi.org/10.3389/fpsyg.2022.1104120.

Jonas, A. (2002). Strategie konkurencji na rynku usług bankowych w Polsce [Competitive strategies in the banking services market in Poland]. Oficyna Wydawnicza „Zarządzanie i Finanse”.

Karaman, H. D., Savaser, T., Tiniç, M., & Tumer-Alkan, G. (2021). Financial technology in developing economies: A note on digital lending in Turkey. Economics Letters, 207, Art. 110012. https://doi.org/10.1016/j.econlet.2021.110012.

Khan, S., Hasan, M. M., & Yajuan, L. (2020). Promoting China’s Inclusive Finance through Digital Financial Services. Global Business Review, 23, 984–1006. https://doi.org/10.1177/0972150919895348.

Klein, O. (2019). Stratégies de la banque de détail face à la révolution technologique. Revue d’économie financière, 135(3), 193–206. https://doi.org/10.3917/ecofi.135.0193.

Kurniati, R. R., Krisdianto, D., Deka, R. E., & Maula, T. S. (2025). Cashless society and digital wallets: Their influence on Gen Z’s consumption behavior in the context of Islamic banking. Multidisciplinary Reviews, 9(6), Art. 2026296. https://doi.org/10.31893/multirev.2026296.

Lee, S., & Yoon, S.-H. (2026). Evolving dynamics of resistance and adoption in digital finance: A user review analysis of FinTech and traditional banking applications. Electronic Markets, 36(1), Art. 45. https://doi.org/10.1007/s12525-026-00899-8.

Lin, M., & Li, B. (2025). Does banking competition stimulate entrepreneurship? China Finance and Economic Review, 14(4), 67–84. https://doi.org/10.1515/cfer-2025-0022.

Lugun, A. A. (2024). Impact of digitalisation on banking sector. International Journal of Education, Modern Management, Applied Science & Social Science, 6(3[I]), 140–146. https://doi.org/10.62823/IJEMMASSS/6.3(I).6844.

Lukonga, I. (2018). Fintech, inclusive growth and cyber risks: Focus on the MENAP and CCA regions (IMF Working Paper No. 18/201). International Monetary Fund. https://doi.org/10.5089/9781484374900.001.

Mansaray, S. S., Hongyi, X., & Sawaneh, I. A. (2024). Assessing and enhancing operational efficiency in Sierra Leone’s retail banking sector: A comparative analysis using CCR and BCC DEA models. Managerial and Decision Economics, 45(6), 3705–3715. https://doi.org/10.1002/mde.4225.

Mazurek-Łopacińska, K. (2018). Generacja Z – cele, wartości życiowe i wyzwania dla współczesnych przedsiębiorstw [Generation Z: Goals, life values, and challenges for contemporary enterprises]. Konsumpcja i Rozwój, 4(25), 62–75.

Meder, M. (2006). Marketing relacji w bankowości detalicznej: Porównanie roli doradców klientów w Polsce i w Niemczech [Relationship marketing in retail banking: A comparison of the role of customer advisors in Poland and Germany]. Bank i Kredyt, (2), 86–95.

Moon, J., & Erdem, M. (2026). From pixels to plates: Generation Z’s psychological decision-making in blockchain-based digital twins of quick-service restaurants. Journal of Hospitality and Tourism Insights, 9(11), 82–100. https://doi.org/10.1108/JHTI-09-2025-1091.

Moon, J., Erdem, M., Ozdemir, O., Kim, H. (L.), & Anlamlier, E. (2025). What drives Millennials and Generation Z to adopt cryptocurrency for hotel payments? International Journal of Contemporary Hospitality Management, 37(5), 1827–1844. https://doi.org/10.1108/IJCHM-12-2023-1936.

Prokopenko, O., Zholamanova, M., Mazurenko, V., Kozlianchenko, O., & Muravskyi, O. (2022). Improving customer relations in the banking sector of Ukraine through the development of priority digital banking products and services: Evidence from Poland. Banks and Bank Systems, 17(3), 12–26. https://doi.org/10.21511/bbs.17(3).2022.02.

Rhoades, S. A. (1993). The Herfindahl-Hirschman index. Federal Reserve Bulletin, 79(3), 188–189.

Sharma, N., & Dutta, N. (2025). Generational dynamics of omnichannel customers: Analysing shopping preferences across diverse product types. International Journal of Retail & Distribution Management, 53(4), 312–330. https://doi.org/10.1108/IJRDM-04-2024-0173.

Srokosz, W. (2003). Czynności bankowe zastrzeżone dla banków [Banking activities reserved for banks]. Oficyna Wydawnicza Branta.

Stankiewicz, M. J. (2005). Konkurencyjność przedsiębiorstwa: Budowanie konkurencyjności przedsiębiorstwa w warunkach globalizacji [Enterprise competitiveness: Building enterprise competitiveness in the conditions of globalization] (wyd. 2 zm.). Dom Organizatora.

Świderska J., Galbarczyk T., Klimontowicz M., Marczyńska K. (2016). Bank komercyjny w Polsce [Commercial bank in Poland], Wydawnictwo Difin.

Twenge, J. M., Krizan, Z., & Hisler, G. (2017). Decreases in self-reported sleep duration among U.S. adolescents 2009–2015 and association with new media screen time. Sleep Medicine, 39, 47–53. https://doi.org/10.1016/j.sleep.2017.08.013.

Waśko, R. (2016). Wybrane aspekty różnicujące pokolenie X, Y i Z w kontekście użytkowania nowych technik i internetu. W Z. Rykiel & J. Kinal (red.), Socjologia codzienności jako niebanalności (pp. 136–154). Stowarzyszenie Naukowe Przestrzeń Społeczna i Środowisko.

Yang, F., & Masron, T. A. (2023). Does financial inclusion moderate the effect of digital transformation on banks’ performance in China? Cogent Economics & Finance, 11(2), Art. 2267270. https://doi.org/10.1080/23322039.2023.2267270.