The holidays may be a season of cheer, but for many consumers, they’re also a neon-lit reminder that financial stress doesn’t take vacations. With that pressure in mind, Jack Henry has released its 2025 Financial Sentiment Study: Consumer Report, a detailed look at how 2,435 Americans feel about their financial health—across five cohorts spanning Gen Z to retirees—and how financial institutions can step up before fintechs eat their lunch.

What emerges from the data is a clear message: consumers aren’t feeling great about their finances, they’re not confident in their money management skills, and they want more from their financial institutions—especially digitally. In short, banks and credit unions face both a challenge and an opportunity heading into 2025.

This isn’t just another annual sentiment check. Jack Henry’s findings cut to the heart of a long-running industry tension: traditional institutions still hold the relationship advantage, but fintechs have been winning the experience game. And with digital expectations at an all-time high, that gap is growing more dangerous for incumbents.

The Consumer Confidence Problem Banks Need to Take Seriously

Only 52% of consumers say they’re satisfied with their financial situation. That’s barely a coin-flip, and it’s even more troubling when you consider the drivers behind satisfaction: knowledge, money management, and confidence in one’s institution. Banks influence all three—yet the scores still lag.

The report makes clear that financial stress is no longer a fringe issue tied only to those with limited income or unstable employment. Instead, it’s pervasive. Even middle-aged consumers with stable careers—often thought of as the “financially settled” group—aren’t immune.

And not surprisingly, consumers with higher financial knowledge report significantly greater satisfaction. Which leads to…

The Knowledge Gap: Consumers Feel Under-Educated and Underserved

Just 44% of respondents consider themselves “very or extremely knowledgeable” about financial matters. Gen Z and older consumers rank lowest, which creates an interesting dual challenge:

• Younger consumers need foundational guidance as they earn, borrow, invest, and save for the first time.
• Older adults need clarity as they navigate retirement, benefits, longevity, and estate planning.

Financial literacy has long been an industry talking point, but the disconnect persists: consumers want more education, and banks still struggle to deliver it in personalized, timely, and digestible formats.

Jack Henry argues that technology—especially event-based content and customized nudges—is the missing piece. With personalization engines, account aggregation, and segmentation, institutions can finally deliver “just-in-time financial education” instead of generic resource libraries no one reads.

Money Management Confidence: The Weakest Link in the Consumer Journey

If education is lacking, confidence is even worse.

• Only 47% feel confident in their savings habits
• Just 46% feel confident in their financial planning
• A mere 39% feel confident about borrowing

That last statistic should set off alarm bells. Borrowing confidence is tied directly to consumer trust, and distrust is an open invitation for fintech lenders, BNPL providers, and neobanks to swoop in.

Industry-wide, lenders have spent the last several years tightening credit standards. Consumers can feel it, and many no longer trust banks to be the first—or best—option when they need liquidity. The more disconnected consumers feel from traditional institutions, the more likely they are to turn to Klarna, Affirm, or Apple Pay Later for financing, even when it’s not in their best interest.

Digital Satisfaction: Where Loyalty Is Won (or Lost)

Consumers today use an average of 14 financial apps, a statistic that should make any bank reconsider how “primary institution” is defined. If consumers pay bills through one app, invest in another, budget in a third, and finance a purchase through a fourth—is their bank actually their financial home, or just one more tile on the mobile screen?

Digital satisfaction is now the strongest predictor of overall satisfaction with a primary institution. And while banks generally perform well on “table stakes” digital features—like lost card reporting (71% satisfaction) and bill pay (69%)—that’s no longer enough.

Low experience satisfaction leads to one predictable outcome: migration to third-party fintechs, which are often slicker, faster, and friendlier.

For years, institutions insisted consumers “trust banks more than fintechs.” That remains true. But consumers don’t need to trust an app more than a bank to use it—they only need it to be better, simpler, or faster. And in many cases, it already is.

Life Stage Shapes Financial Confidence More Than Income or Assets

One of the study’s more nuanced findings: confidence peaks for consumers in their 30s and early 40s, and falls off sharply at both ends of the age spectrum.

• Under 25: low income, limited experience, confused by financial complexity
• Over 65: anxious about fixed income, longevity, healthcare, and technology

This bifurcation underscores what many in the industry already suspect: generational labels are too shallow. Segmentation must blend demographics and psychographics—risk tolerance, goals, digital comfort, even emotional attitudes toward money.

As Lee Wetherington of Jack Henry says, “Everyone recognizes the urgent need to understand Gen Z—but few have clarity on the distinctive sub-segments within and across generations.”

If institutions want to deepen relationships, they need to stop treating generations like monoliths and start tailoring experiences to life moments: first job, first home, new baby, retirement prep, health events, and more.

The Digital Opportunity: Where Jack Henry’s Platform Strategy Fits In

Jack Henry (like nearly every major fintech or banking tech provider) is leaning heavily into personalization, orchestration, and data-driven education. Platforms like Banno Digital Platform™ and JHA OpenAnywhere™ are positioned as the infrastructure banks need to:

• deliver event-driven financial education
• unify accounts with secure aggregation
• build trust through data-driven personalization

While the report is an objective snapshot of consumer sentiment, it also conveniently highlights the problems modern core banking and digital platforms try to solve. To Jack Henry, the message is clear: banks can still be the center of consumers’ financial lives—but only if they modernize.

The broader industry agrees. Technology investment has shifted decisively toward:

• embedded financial insights
• real-time alerts
• automated financial health checkups
• smarter onboarding and product recommendations
• generative AI-powered education

Banks that ignore these shifts risk turning into utilities while fintech apps deliver the value-added layers consumers actually want.

The Emotional Layer: Trust, Anxiety, and the Future of Financial Relationships

Financial confidence isn’t just about money. It’s about psychology, identity, and stability. Consumers want institutions that:

• simplify complexity
• anticipate needs
• provide reassurance during major life events
• help them feel capable and informed

This is a relationship business disguised as a numbers business. And in a climate of inflation, rising costs, economic volatility, and digital overload, the need for meaningful guidance has never been clearer.

As Jeff VanDeVelde of Jack Henry puts it, financial institutions should “position themselves as trusted allies.” It’s a simple idea but requires a complicated shift: banks must evolve from providers of products to partners in financial wellbeing.

What This Means for Financial Institutions in 2025 and Beyond

1. Digital experience is now the loyalty engine

If your mobile app is clunky, your consumers are already shopping for replacements.

2. Personalized financial education is a competitive edge

Generic content doesn’t build confidence; timely, tailored guidance does.

3. Borrowing is a trust issue

A 39% confidence level in borrowing means fintech lenders will continue growing.

4. Segmentation must get smarter

Demographics alone don’t explain behaviors; psychographics increasingly do.

5. Banks can still win—if they modernize

Consumers want to trust their primary institution. They just need a reason to.

The Bottom Line

The 2025 Financial Sentiment Study paints a sobering but actionable picture: Americans are struggling with confidence, knowledge gaps, and digital fatigue—and they’re not sure their financial institutions have their backs.

For banks and credit unions, the opportunity is enormous. Consumers still prefer the stability of traditional institutions over stand-alone fintechs. What they crave is modern engagement, better digital experiences, and financial guidance that feels human, personalized, and useful.

The institutions that invest in these capabilities now will deepen loyalty for decades. Those that don’t will watch fintechs continue to chip away at their relevance—one app download at a time.