The Rise of Gen Z in the Financial World
Generation Z, born between the late 1990s and early 2010s, is reshaping the way we think about payments and financial habits. As digital natives, their approach to money management and spending is vastly different from previous generations. This article delves into the key trends and behaviors of Gen Z, based on research conducted by Thunes across 13 emerging and developed markets.
Digital Dominance: Gen Z’s Online Lifestyle
Gen Z has grown up in the age of the internet, making digital technologies an integral part of their lives. They expect brands to accommodate their online habits, influencing how they make and execute decisions.
Social Media Influence on Spending
Social media plays a crucial role in Gen Z’s spending habits. Platforms like TikTok, YouTube, and Instagram are not just for entertainment but also for discovering and purchasing products. The “TikTok made me buy it” phenomenon highlights the power of social media recommendations.
Mobile Wallets Over Traditional Banking
A significant portion of Gen Z does not have a traditional bank account. Instead, they prefer mobile wallets and other emerging money management tools. This trend is especially prominent in emerging markets, where conventional banking has less penetration.
Trust and Security in Payment Methods
When choosing payment methods, Gen Z prioritizes brand trust and security. They prefer payment options that are reliable, secure, and easy to use. This trend is consistent across both emerging and developed markets.
Adapting to Gen Z’s Financial Preferences
Businesses must understand and adapt to the changing financial preferences of Gen Z. With their growing economic impact, catering to their unique needs and behaviors is crucial for future success.
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