Gen Z has undoubtedly experienced a bumpy start, with the oldest members of the generation graduating college during the pandemic followed by the highest inflation in decades. Despite that, they’re exceeding expectations in terms of financial performance and are quickly becoming a key demographic for financial institutions and fintechs.

They’re outperforming every prior generation in terms of median income. They have higher homeownership rates and better credit scores than Millennials. Our research indicates that they’re also the most financially literate generation, with increased likelihood of using budgeting apps and DIY fintech, talking openly to friends and family about finances, and even filing their taxes earlier.

The product and go-to-market teams that effectively execute on Gen Z growth strategies will win the future. Gen Z’s unique financial behaviors, preferences for digital solutions, and appetite for personalized services present a golden opportunity for brands to differentiate themselves. 

Embedded tax: a strategic differentiator

Integrating tax services into financial platforms is a strategic move that can help financial institutions capture and retain Gen Z customers. Here’s how embedding tax solutions aligns with Gen Z’s unique financial behaviors and expectations:

The demand: seamless digital integration Gen Z demands an all-in-one digital experience for managing finances. With 57% expecting to change jobs within a year​ (Nasdaq) and 60% preferring digital financial management ​(EY US), they need flexible, integrated tools that adapt to their dynamic lives.

• How april uniquely solves this: april's Paycheck Optimizer feature provides users unprecedented control over their tax withholdings directly within the app they already use for payroll. This integration allows Gen Z to effortlessly manage their taxes as part of their overall financial life, perfectly aligning with their preference for a seamless digital experience.

Personalized and data-driven services: Gen Z highly values personalized financial services, with 78% expecting tailored advice ​(EY US). They are 25% more likely than Millennials to use tools offering customized insights, which can be enhanced through data collected via integrated tax services​ (Nasdaq).

• How april uniquely solves this: april’s integration with existing financial applications turns tax filing from a mere compliance exercise into a data-rich activity. By leveraging this data, april provides personalized recommendations that elevate a user’s financial decisions, offering actionable insights based on their holistic financial picture. This approach not only meets Gen Z's expectations for personalization but also deepens their engagement with your platform.

Empowerment through education: Over 70% of Gen Z actively seeks financial education, particularly on taxes ​(EY US). They are twice as likely as older generations to use financial apps for learning ​(Nasdaq), showing a clear preference for tools that educate them and allow them to make better financial decisions.

• How april uniquely solves this: april’s Estimator tool empowers users by providing a preview of their tax situation before the end of the year, helping them make informed decisions well in advance of tax time. This feature aligns with Gen Z's desire for financial education and proactive financial management, reinforcing their trust and loyalty to your platform.

Don’t be the last to add this key benefit to your offering

april is a smart tax platform that transforms tax filing from a once-a-year obligation into a year-round financial planning tool. Leading fintechs and financial services firms like Chime, Dayforce, and Gusto have embed april’s suite of tax capabilities, significantly boosting user engagement, NPS, and deposits, particularly among Gen Z users. In tax year 2023, 30% of all april users were first-time filers, underscoring the platform's strong appeal and relevance to new tax filers.

For fintechs and financial services firms planning their strategic roadmap, embedding april can be transformative. This integration addresses Gen Z’s demand for seamless digital experiences by providing an all-in-one platform for financial management. It also meets their preference for personalized, data-driven services by offering tailored tax advice and insights. Furthermore, april empowers users with tools and education to better understand their finances, aligning perfectly with Gen Z’s values and securing their loyalty as this demographic grows into the largest and most lucrative market.