Is Gen Z Sold on FinTech?

Who doesn’t want to earn more money, obtain financial freedom faster, and automate money woes to sit it and forget it? Gen Z might be one of the most in-touch fintech generations out there. 

Financial technology, in its many shapes and sizes, has inspired every generation to change their money habits and embrace more convenient lifestyles.

But, is Gen Z thoroughly persuaded by fintech’s value, or are they the ones changing the goals of the world’s most influential organizations to fit their needs?

What Is the Gen Z Perspective on FinTech?

Gen Zers are leveraging fintech like nobody’s business. Financial stress outside their control has plagued their generation, making them more motivated to find avenues to alleviate money stress and secure early retirement, economic mobility, and independence.

These events — like inflation and poor wages — have made them lose trust in traditional banking methods and become disenchanted with capitalism, taking measures into their own hands.

These are some of the fintech trends and innovations that defined the Gen Z financial attitude:

• Decentralized cryptocurrency and blockchain

• Contactless payments and delivery inspired by the COVID-19 pandemic

• Assets influence by memes and trending internet humor

• Microtrading catalyzed by the GameStop short squeeze in 2021

• Social shopping on social media channels like TikTok and Instagram

• Augmented reality shopping experiences

• Peer-to-peer apps for savings, financial education, and investing

• Buy-now-pay-later (BNPL) payment plans

• Property flipping inspired by side hustle culture and vacation rental services like Airbnb

Even though Gen Z wants to use fintech, they’re still skeptical — so tech companies have to incite buy-in. The most impactful way to do this is by appealing to their goals and tech savviness while their fintech app usage is still up — over 63% — since the pandemic.

How Are Gen Zers Leveraging FinTech?

Gen Zers grew up with little to no financial education, learning from their Millennial predecessors who are swamped in credit card and student loan debt.

They take financial education seriously and independently to help their debt and spending insecurities.

For example, they are taking responsibility for dispelling myths surrounding complex topics like student loans and how they impact taxes.

Others are investigating how to withdraw from employer-sponsored retirement plans to afford a down payment on a house with no penalties.

They’re also using fintech because it’s accessible. Gamified financial courses, YouTube and TikTok channels, apps, and online communities allow groups of budding financial amateurs to gradually increase their knowledge in the comfort of a learning environment. 

It dispels the world of money previously hidden behind suits and ties and complex jargon. Gen Zers have redefined the landscape to fit their needs, making financial institutions find ways to meld with them instead of the other way around.

Everyone can see this as corporations have sassy, meme-worthy personae on social media and websites optimized for mobile use.

That said, companies are noticing Gen Z's financial priorities — convenience, speed, security, and flexibility. It only takes a few minutes to open a bank account now compared to setting up an appointment and using gas money to sit in an office filling out pages of paperwork.

Klarna and Afterpay make it so Gen Zers don’t assume credit card debt but instead use more manageable, automated payment plans that don’t dig credit scores into the ground.

Will These Tools Improve Global Financial Wellness?

Gen Zers' impact on finance is one of the exciting times to be in the industry. Learning about money and being transparent about it is almost trendy, making conversations more normalized. 

Gen Z must continue this growing interest to support disenfranchised populations that have struggled to obtain financial footing.

Publicizing brands, even on social media, that target assistance and education to these groups will gradually impact poverty disparities and access.

Fintech also embraces the Gen Z desire to support companies with public and corporate social responsibility and sustainability promises.

Young investors are moving to green investment portfolios instead of defaulting to the S&P 500 and switching to banks that don’t invest in fossil fuels and are certified B Corp.

These are essential votes with dollars because it forces legacy companies to keep up. Otherwise, they’ll fall out of competitive view.

These ideas expand the possibilities of one financial task and make it multitask — making a purchase can donate roundup pennies to a charity and earn savings points, and direct deposits can automate funds into curated savings buckets.

More imagination in the financial world could make every transaction more valuable.

Sealing the Deal With Gen Z and FinTech

Financial institutions must move on — it’s an antiquated sector that must look to the youngest generations to stay relevant. It’s not a time to complain.

In fact, Gen Zers expressing what they want from fintech will make it the most versatile and accessible it has been in history.

Customized chopping, alternative payment methods, and knowledgeable finfluencers will rebrand the financial industry, transforming the world into a more intuitive, secure future.