The findings: One quarter of Gen Zers in the UK have multiple bank accounts but only use one regularly, according to a recent study by Intuit Credit Karma. 

• They have learned that staying with one bank doesn't offer the best deals and are more likely to use separate providers for different financial needs.

How we got here: Opening accounts has gotten easier as financial institutions (FIs) compete for the best digital experience. But it’s also made it easier to open accounts just for the perks. 

Bloomberg recently covered this strategy, citing a college student who opened dozens of accounts over the course of a year, netting him £2,800 (US$3,774) in sign-up bonuses. UK banks have successfully acquired many young customers through such bonuses as well as with referral rewards and food delivery services.

What this means for banks: Account-opening incentives are working, and FIs should continue to offer them to boost customer acquisition. However, they should also add parameters that require customers to remain active banking users or keep accounts for a certain period of time in order to qualify.

The real win for banks is converting customers into primary users following the sign-up bonus. This requires a shift in strategy from acquisition to engagement. Banks must build a digital experience so valuable that Gen Zers use their accounts regularly even after the initial bonus has been spent. This means focusing on things that matter to them:

• Superior digital experience: A seamless, intuitive, and fast app is nonnegotiable. Clunky interfaces or slow load times will send them straight to a competitor.
• Personalized value: Offer tools that help them manage their money better, such as AI-powered insights, easy budgeting features, and integrated saving goals.