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'Dopamine banking' gains attention as key strategy to attract Gen Zers
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By Jun Ji-hye
"Dopamine banking" is gaining attention in the financial industry as an effective way to attract and keep Generation Z, known for their nomadic tendencies, according to the KB Financial Group Research Institute on Wednesday.
Born between 1997 and 2012, Gen Zers are the first generation to grow up fully immersed in the mobile environment. Comfortable with smartphones and social media, they tend to prioritize emotional connection over practical functionality, and fun over pure information.
The institute said in its recent report that Gen Zers' consumption habits have moved beyond trends to shape broader social norms, noting that this shift is now evident in traditional financial services — such as deposits, transfers and loans — which were once purely rational decisions but are increasingly driven by emotion and sensory appeal.
This is why dopamine banking is drawing attention.
Dopamine banking refers to a strategy that incorporates elements of pleasure and enjoyment into financial products and services, aiming to boost users’ immersion in banking apps. By structuring services to offer fun and rewards, similar to what users experience in gaming or online shopping, it encourages repeated engagement.
The report suggested that this approach aligns well with Gen Zers, a group accustomed to digital stimulation and driven by a desire for fun and instant gratification, positioning dopamine banking as an effective tool to capture and retain their attention.
The report highlighted that such strategies are already proving popular in global markets, particularly through fintech firms and internet-only banks.
A prime example is Venmo, a U.S. mobile payment platform that has successfully targeted Gen Zers by incorporating dopamine-driven features.
By breaking away from the traditional image of dull financial apps, Venmo appealed to young users with an intuitive interface and vibrant visual effects. Features like emoji-based payments and real-time notifications further enhanced the sense of instant reward, strengthening user engagement.
According to a study by Manole Capital Management, an investment advisory firm, 90 percent of Gen Zers were using Venmo as of 2020.
Kang Yoon-jung, a researcher at the research institute, explained that dopamine banking can help financial firms boost both customer satisfaction and brand loyalty.
"It could serve as a powerful tool to prevent the loss of Gen Z customers, who are known for frequently changing banks and having strong ad blocking habits," Kang said. "Successful dopamine banking relies on leveraging data and artificial intelligence to deliver personalized tips and nudges that match each customer's unique circumstances."
The researcher stressed the importance of understanding customers’ daily habits and proactively introducing services they may need before they even become aware of them.
"Companies should actively respond to customer feedback by continuously refining their products, services and apps to provide a consistently fresh and immersive experience," Kang said.