Gen Z is quitting banking jobs: Why is the young generation ditching stability for flexibility and freedom

Banking, long considered the pinnacle of stability and prestige, is losing its appeal for a new generation of professionals. Gen Z employees, born between 1997 and 2012, are increasingly walking away from roles that were once coveted.

A recent KPMG survey of senior executives found that nearly half of financial services leaders reported an uptick in young staff departures over the past year, rising to 54% within the banking sector.This trend is more than a staffing challenge; it signals a generational shift in expectations around work, purpose, and personal freedom.

The new priorities

For decades, a career in banking symbolized structure: predictable promotions, high salaries, and clearly defined career paths. Yet the KPMG survey reveals that Gen Z employees are motivated by different priorities:

Security alone is no longer sufficient. Young professionals now seek work that aligns with their lifestyles, values, and long-term aspirations.

A broader cultural shift

The survey estimates that roughly a quarter of younger employees have left finance roles in the past year. This is not just a numbers issue, it represents a fundamental change in workplace culture. Gen Z increasingly prioritises autonomy, creativity, and the ability to define success on their own terms over traditional markers of career achievement.Financial institutions are aware of the risk. The KPMG survey found that 96% of executives are implementing strategies to retain Gen Z talent, including flexible working policies, term-time contracts, and revised office attendance rules.

Still, these measures address immediate concerns rather than the underlying generational expectations driving this movement.

Implications for the financial sector

The exodus of young talent carries significant consequences. Banks may struggle to attract the innovation and digital expertise necessary to compete with agile start-ups and fintech challengers. Beyond the industry, the trend reflects a societal shift: careers are becoming less linear and more self-directed.

Gen Z is redefining what work means, valuing autonomy, creativity, and fulfillment over prestige and stability.

A wake-up call

The KPMG survey is a stark warning. Financial institutions must adapt to the changing expectations of the workforce or risk losing relevance. Gen Z is not just leaving jobs, they are shaping the future of work itself, and the banking sector must evolve quickly to remain competitive.