Generation Z and Generation Alpha, the youngest and most tech-savvy groups, are changing the way we think about money. Gen Z, born between 1996 and 2010, has now overtaken Millennials as the largest generation worldwide. Gen Alpha, born after 2006, is the first to grow up with smartphones, tablets, and social media as a normal part of their daily lives. These digital natives have unique expectations and preferences for banking and financial services. They value personalization, efficiency, trust, and sustainability from their financial providers. Additionally, their shorter attention spans—dropping from 12 seconds to just 8 seconds since 2000—demand new and creative approaches.
Generation Z grew up during challenging times, particularly the COVID-19 pandemic. Beyond the health crisis, they saw how economic struggles affected their families. Conversations about financial uncertainty became common, making a strong impression on them.
Determined to take a different route, Gen Z is making waves in today’s society, changing financial systems, including banking, investing, and how they view money overall. Their fresh approach is catching the eye of traditional financial institutions. As Gen Z sets the stage for change, preparing for the even more digitally connected Gen Alpha is essential. This new generation, which is even more global, social, and visually oriented, will further transform the financial landscape.
Gen Z isn’t just stepping into the investment world; they’re changing it. By the age of 18, many had already started investing in financial markets. According to NerdWallet, 31% of Gen Z has invested in cryptocurrency. Additionally, a quarter of them have bought stocks, helped by fintech platforms that offer simple, low-cost ways to invest. In a 2019 survey by HSBC, 72% of Gen Z said they would save £1,000 if given the chance, compared to 55% of Millennials, showing that financial stability is important to them.
Holistic Financial Well-being
According to a McKinsey report, Gen Z wants more than just financial services; they seek financial well-being, which they link to their mental and emotional health. “Gen Z is more interested in wellness spending that focuses on overall health.”
The Role of Social Media in Financial Education
Gen Z’s financial education comes mainly from screens. According to WallStreetZen, 76% of Gen Z learns about personal finance from TikTok and YouTube. However, 83% of Gen Z admits they’ve encountered misinformation from unreliable sources. The article also notes that Gen Z is becoming more interested in investing due to the rise of AI.
The Future of Banking: Digital and Social
A major change is happening in the financial world. With 4 million digital-first Gen Zers expected to open bank accounts each year until 2026, and Gen Alpha following, traditional banking is being redefined. eMarketer reports that 55.7% of Gen Z considers mobile banking their top priority when choosing a bank, even more than concerns about fees. It’s possible that Gen Alpha might never visit a physical bank branch, handling all financial activities through their digital devices.
Financial Strategies for Gen Z and Gen Alpha
The influence of social media and technology on Gen Z and Gen Alpha is significant. Nearly half of Gen Z spends 1-3 hours each day on digital platforms, with many extending this to 3-5 hours. They expect content that is personalized and instantly available, and Gen Alpha is likely to surpass these engagement levels.
Gen Z has introduced a major change in the financial services sector, creating both challenges and opportunities. Financial institutions that want to succeed must evolve, innovate, and offer solutions that attract, engage, and keep these young consumers. According to a recent Deloitte survey, adapting to their digital environment and communicating in a way that connects with them is essential. It’s not just about sharing information; it’s about creating meaningful interactions that resonate with Gen Z and Gen Alpha.
