Competitive Compass

The Youth Are Thriving

Gen Z and Millennials are doing great. Gen Z and Millennials feel fantastic about their financial situation. Please re-read the previous sentence. It’s easy to get caught in the doom loop that surrounds all of us. Doom & gloom gets more clicks, and we all know this, yet we allow the negativity to cloud our judgment. This summer, I wrote The Mythbuster Memo [https://www.linkedin.com/pulse/mythbuster-memo-anuj-shahani-jhlse/], my worst-performing newsletter for the year. One can’t make this up. Probably it was too positive for readers? IF you believe in data, then please consider that Gen Z andMillennials are feeling much better about their financial health. This helps explain the growth across the board, including premium cards, across various experiences, and new products. Patrick has a fantastic presentation on 2026 Financial Services Marketing Predictions [https://clients.mintel.com/content/report/2026-financial-services-marketing-predictions]. I’m happy to schedule this forthe first two weeks of December or in the new year. He identifies three key themes for next year: 1.      Control Amid Chaos Continued macroeconomic uncertainty, combined with adecreasing interest rate environment, will drive banking competitors to highlight budgeting tools and lenders to promote refinancing as a proactive form of reasserting control. 2.      Old Money, New Tricks A surge in financial confidence among the youngest segments of adults will reshape brand strategy, as financial services companies target Gen Z adults as intrafamily influencers who can steer their parents to new products and planning techniques.3.      Simpler Is Smarter Premium card relaunches are pushing the boundaries ofproduct complexity, causing competitors to use simplicity as a differentiator in marketing. As financial brands refocus on checking accounts and primary status, doing the basics better will be a recurring theme.

Precision in Motion

Targeting and Channel Strategy in Q3 2025. What the Data Tells us about Issuer Intent?   Fulcrum Question: If discovery is shifting to GenAI andtrust is being built on the margins, where does competitive advantage come fromnext?   I typically spend 4-6 hours putting this newsletter togethereach week. Sometimes, I take twice as much time (this happens quarterly).The reason is that these two reports I feature today capture so much incredible detail that I struggle to boil them down to the key takeaways. Pulling out just two or three takeaways is like trying to pick a favorite from a buffet where everything matters. That’s what makes this edition one of the toughest and most rewarding to write. 1. Q3 2025 Credit Card Application Report [https://clients.mintel.com/content/report/q3-2025-credit-card-application-report] 2. Financial Profiles - Q3 2025 [https://clients.mintel.com/content/report/financial-profiles-q3-2025] I highly recommend reading both reports in full. But ifyou’re short on time, or just looking for a guided tour, here’s what you need to know. Below, I’ve laid out the key takeaways of how each issuer is playing the game. Bank of America BofA hosted its investor day event this past week, markingnearly 15 years since its last one. You can view the full 300+ page deck here [https://d1io3yog0oux5.cloudfront.net/_9c3a9cac0941d0a30fd088b1ce0b7203/bankofamerica/db/968/10447/file_upload/BofAInvestorDay_FullPresentation_Final.pdf]. My goal was to validate what I saw in Q3 activity with the broader vision, and there’s perfect alignment. BofA is focused on quality over quantity. Product cross-sell and relationship depth are key priorities.

Why Gen Z Pays Differently

Gen Z wants to borrow smarter, faster, and on their own terms. The opportunity? Build the tools that meet them where they are.   Fulcrum Question: Does our product help a user make a smart choice right now, one they’ll feel good about tomorrow? I always smile when people say Gen Z doesn't like credit, as I know this is not true. Today, I have some statistics to back up that smile. Gen Z is reshaping credit, incorporating the best elements of debit as a component. Gen Z is not a generation of spenders or savers. It’s ageneration of choosers. They want tools that are simple, transparent, and seamlessly integrated into their existing shopping and payment processes. BNPL’s rise is about gaining control and confidence. The brands that appear at checkouts makeflexibility feel intuitive and win the current transaction, while also being front-runners in gaining long-term loyalty.   BNPL’s Blueprint: Empowerment in Four Taps BNPL’s rise is not a fluke. What started as a short-term lending tool has evolved into a frictionless way for young consumers to gain greater control over their finances. And the numbers show it.The result: BNPL feels modern. It feels like it's been designedfor them.From Control to Confidence: Why This Matters Dig beneath the behaviors, and a bigger motivation comes into view: control. And with it, something even more powerful: confidence. Gen Z doesn’t want to be told how to manage money. They want tools that work like the rest of their digital life: intuitive, transparent, and available instantly. That’s why the best BNPL providers are doubling down on clarity. Terms are easy to understand. Installments are visible at checkout. Alerts remind users what’s due and when. And if something slips? The UX doesn't punish, it guides. BNPL proves this: when you treat the user as capable and in control, they repay you with trust.The Takeaway The future of credit isn’t about interest rates or APR calculators. It’s about trust at the moment of action. Whether your customer is buying sneakers or booking their dream vacation, they’re evaluating your product on one thing: Does this help me get what I want, without surprising me later? Get that right, and you don’t just win the transaction; you also win the customer.You earn the repeat. You earn the relationship. You earn the default position in their financial life.

The Periodic Table of Partnerships

The New Chemistry of Growth Money 20/20 this year was less about competition and more about connections/partnerships; everyone’s finding their element.   Walking the expo floor at Money 20/20 in Las Vegas thisweek, it struck me that the word “alone” is fading from the payments vocabulary. Wallets are partnering with AI firms, banks are collaborating with crypto firms, fintechs are teaming up with banks and brands, and even credit unions are forming partnerships with one another. Fulcrum Question: If you’re in cards, retail banking, or payments, the question to be asking is, “Who will partner fastest and smartest?” Conclusion: The Chemistry Lesson If Money20/20 taught us anything this year, it’s thatgrowth is no longer a solo pursuit; it’s a shared reaction. The future of commerce won’t be written by isolated innovators but by the bonds they form.Every partnership, whether PayPal bonding with OpenAI, Amex linking with Coinbase, or Comperemedia fusing with Equifax, adds a new element to the ecosystem. The most potent compounds are those in which each elementamplifies the other. That’s the chemistry of 2025. That’s the new formula for growth. Find your element. Form your bond. Start your reaction.

Earn Burn Yearn

Today’s edition covers two big moves in cards and banking. * A deep dive with Citi’s Pam Habner on the launch of Strata Elite and the premium card renaissance * A fast read on the Q3 earnings momentum that is reshaping card marketing and product strategy   Fulcrum Question: Are you building for the earn and burn of today, or the yearn and AI-driven journeys of tomorrow?   Andrew interviewed Pam Habner, Head of US Branded Cards and Lending for Citi, and I’d recommend you skip reading my takeaways and watch the full video here [https://youtu.be/nJzBwjr4neI?si=c5J1rRERJrQ7fK7v]. This conversation is a masterclass from one of the most influential voices shaping the future of cards today. 1. The Premium Card Renaissance: Flexibility Over "Coupon Books"  * The definition of "premium" is shifting, demanding greater simplicity and user control. Affluent consumers, especially Millennials, will pay steep annual fees if the value is clear. Strata Elite proves that premium is aboutdelivering freedom, control, and experiences that matter. * The "Earn, Burn, and Yearn" Hierarchy: Premium today is built on three layers. Earn is strong rewards. Burn is the ability to redeem. But it is the Yearn that now drives the category forward; exclusive access, hard-to-get reservations, and cultural experiences that resonate with younger cohorts. The future of premium lives in the Yearn. 2. Strategic Partnerships as the Ultimate Differentiator Citi is leveraging its partnership assets to create a unique value proposition that is difficult for competitors to replicate.