Purpose: Generation Z, as the first fully digital generation, exhibits distinct patterns of perceiving, interacting with, and consuming financial services compared with previous generations. Consequently, traditional approaches to bank brand positioning may no longer adequately address the expectations of this generation. Despite the growing body of research on digital banking, customer experience, and branding, limited attention has been paid to an integrative framework that simultaneously explains how Generation Z cognitively conceptualizes and categorizes banks and the strategic requirements for positioning bank brands. This study aimed to develop a strategic fit framework for bank brand positioning in the Generation Z era. Using a multi-method qualitative design, the study first explored Generation Z’s cognitive categorization of the concept of a bank and subsequently developed a strategic fit model for bank brand positioning based on these perceptions.

Method: This study employed a multi-method qualitative approach within an interpretivist paradigm. The first study used Interpretative Phenomenological Analysis to examine the lived experiences and perceptions of 17 Generation Z participants regarding the concept of a bank. Participants were selected through purposive sampling, and data were collected through semi-structured interviews and analyzed using Interpretative Phenomenological Analysis. In the second study, drawing on Charmaz’s constructivist grounded theory, the perspectives of 16 banking industry experts regarding the requirements for bank brand positioning in the Generation Z era were explored through theoretical sampling. Data were analyzed using initial coding, focused coding, constant comparison, and analytical memo writing. The quality of the findings was assessed based on Charmaz’s criteria of credibility, originality, resonance, and usefulness.

Findings: The findings of the first study indicated that Generation Z’s understanding, meaning-making, and categorization of the concept of a bank and banking are shaped by three dimensions: a secure and customer-centric digital financial system; preference for digital banking; and institutional trust. Based on these perceptions, the second study yielded a strategic fit model for bank brand positioning comprising two main categories: organizational fit and marketing communications fit. Organizational fit includes three subcategories: organizational structure agility, digital banking infrastructure agility, and human resource capability agility. Marketing communications fit comprises three subcategories: enhancing generational understanding, marketing communications agility, and external environment agility. Among the identified subcategories, digital banking infrastructure agility was the most important, highlighting the central role of digital experience in shaping bank brand positioning from Generation Z’s perspective.

Conclusion: The findings indicate that bank brand positioning in the Generation Z era is not merely a function of digital technology development or marketing communications activities; rather, it depends on achieving strategic fit among customers’ cognitive perceptions, organizational capabilities, and the bank’s approach to market interaction. By linking categorization theory, brand positioning, and strategic fit, this study provides a framework for explaining how bank brand positioning is formed in the minds of Generation Z. The proposed framework can serve as a basis for designing digital transformation strategies, developing customer experiences, and enhancing banks’ competitive advantage in engaging with Generation Z and other emerging generations.

Keywords: Generation Z; brand positioning; strategic fit; categorization theory; Interpretative Phenomenological Analysis; Charmaz’s constructivist grounded theory.