Born between 1965 and 1980 (ages 45-60), Generation X bridges analog and digital, as well as their workaholic parents and screen-native children. Shaped by events like the end of the Cold War, the Reagan-era recession and the dawn of the Internet, Gen Xers grew up during a time of transition and uncertainty. They also experienced a relaxation of workplace formality and developed a general distrust of “the establishment.”

Frequently called “the sandwich generation,” many Gen Xers find themselves caught between supporting their aging parents while also raising their own children. This often hinders their ability to save for retirement. While they’ve easily adapted to digital life, many feel overlooked by the financial institutions they’ve been loyal to for decades.

In this article, we’ll examine Gen X’s banking experiences, preferences and expectations, as well as their digital habits and engagement style, to uncover how your financial institution can best serve them now and in the future.

Early Banking Experiences

Gen X is in a unique—and often stressful—financial position. According to STRAT7 research, 83% of Gen Xers feel responsible for supporting their children financially, while 63% help their parents. Almost half of Gen Xers support both.

Unsurprisingly, over half (53%) say finances are a source of worry. Despite being in their prime earning years, many are unable to build the financial security they once expected. 29% of Gen X report being unable to plan their future finances and 41% don’t have enough saved to cover three months of expenses. They also carry more credit card debt than any other generation, averaging $9,600 (more than $2,500 higher than Millennials).

All of this naturally fuels anxiety, with 60% of Gen Xers reporting that money stress affects their mental health. Yet only 37% feel their financial providers truly understand them. For this self-reliant generation, a proactive approach by financial institutions can be an effective strategy, as can offering access to responsible short-term liquidity options.

Banking Preferences and Expectations

While much of today’s banking focus is on younger generations and their digital-first preferences, don’t forget Gen X and Baby Boomers. It’s equally important to meet their varying needs.

Gen X makes up around 19% of the U.S. population, controlling approximately 26% of the nation’s wealth. This is nearly triple the amount Millennials and Gen Z control (9.4%). Additionally, 61% plan to add at least one new financial product this year, and 35% plan to add two or more. Credit cards, savings accounts, auto loans and personal loans top the list.

Their five most-valued priorities are:

1. Discounts, cashbacks or rewards
2. Easy-to-use digital tools or apps
3. Personalized, expert advice
4. Goal setting and tracking tools
5. Transparent, easy-to-understand language

Gen X wants a balance between digital convenience for everyday needs and personal service for more complex issues. They’re less likely than younger generations to switch financial institutions, but high fees and interest rates or unresponsive service can still push them to look elsewhere.

Digital Habits and Channel Usage

Overall, Gen X has embraced digital banking. More than half (54%) prefer to bank via mobile app, while 27% favor online banking by computer. Only 16% prefer visiting a branch, and just 3% rely on phone calls. However, for complex transactions like wire transfers or new account opening, 43% still prefer in-person interactions.

Three-quarters of Gen X trust their banking apps, and they’ve become confident digital users. Their most-used mobile features include bill payment (75%), transferring money between accounts (57%) and tracking spending (52%).

Despite that, like their older Baby Boomer counterparts, most of Gen X has frequently felt overwhelmed by technology over the years, so hybrid engagement is key. That might mean pairing proactive digital alerts and personalized financial insights with easy access to a real banker when needed.

When it comes to spending, Gen X often leans on credit cards: more than one in four Gen Xers prefer to put all eligible purchases on them. They’re also the least likely generation to regularly pay off their full monthly balance (42%), with 30% paying less than half of their balances regularly and 6% unable to make payments. Providing a debit card with tiered rewards similar to those offered by credit cards can deliver a more responsible and enticing option for many Gen X account holders.

Loyalty & Engagement

Nearly 80% of Gen X is satisfied with their primary financial institution. Like Baby Boomers, they’re also less willing than Gen Z or Millennials to switch banks in general, though Gen Xers are more open to switching to a local bank (49%) or a credit union (47%). Only 25% say they’d switch to an online bank, a clear opportunity for community financial institutions.

When researching new products or services, Gen X prefers to use a financial institution’s website and mobile app. This contrasts with Baby Boomers, who are more likely to visit a physical branch. Targeted digital messaging about relevant products and services is an effective way to reach and engage this generation.

Opportunities to Connect with and Engage Gen X

To support Gen Xers through their financial crossroads, community banks and credit unions can build stronger connections with the following strategies:

• Address unspoken worries. Over half of Gen X worry about their finances but rarely seek help. Proactively share insights and resources that normalize their concerns and offer realistic solutions to position your institution as a trusted partner.
• Support multi-generational planning. Many Gen Xers care for both their children and their aging parents. Offer tools for saving, caregiving and estate planning to show you understand their reality.
• Blend technology with the human touch. This generation values digital conveniences but still wants personal guidance for major decisions. Pair easy access to advisors with user-friendly digital self-service options to build satisfaction and loyalty.
• Simplify and educate. Use clear and concise communication, because 27% of Gen X struggle with financial jargon.
• Reward loyalty. Tangible benefits like cashback and discounts, especially through transparent debit card rewards, can increase engagement and strengthen relationships.
• Build trust through connections. Referral programs can be especially effective with Gen Xers, who tend to be skeptical of online financial advice but highly trust recommendations from family and friends.

In short, community banks and credit unions can become long-term, trusted allies by addressing Gen X’s practical needs and emotional stressors.

Takeaways

Gen X may not be the loudest, wealthiest or most digitally savvy generation, but they’re one of the most influential. They have significant spending power and will control even more in the future. They also pass down financial behaviors to their children and often make important decisions about their parents’ finances. Serving them well creates a ripple effect across multiple generations.

For community banks and credit unions, key takeaways about Gen X include:

• They’re stretched thin. Clear and concise communication, transparency and personalized support can help ease that pressure while building trust and satisfaction.
• They want digital ease and human expertise. Gen X uses technology for everyday tasks, but still relies on personal service for more complex needs.
• They expect digital tools that deliver. Straightforward, dependable technology with real value builds confidence and sets your financial institution apart.

Understanding Gen X isn’t just about catering to another age bracket. It’s about recognizing the generation that holds families, finances and communities together, and helping make their financial journey easier and more rewarding every step of the way.

Looking Ahead

In Part 3 of our series, we’ll focus on Millennials and their unique banking expectations.

In the meantime, check out our white paper, Winning the Battle for Deposits, for more ways to strengthen relationships and drive growth across generations.

Read the white paper