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The financial profile of Generation Z: digital, planned and savers

As a definition centennials or generation Z, are young people born from the year 1997, hyperconnected and who have always lived surrounded by mobile devices, which leads to their relationship with technology is something completely natural.

A generation interested in financial areas

Regarding financial education and unlike its predecessors, more passive with financial knowledge, generation Z does pay attention in this area. They are interested in knowing how products and services work, and they want to understand, for example, the reason for a loan, as well as having an important entrepreneurial spirit.

How Generation Z is facing its financial fears

89% of the centennials declare that planning their financial future makes them feel empowered. In addition, 72% of them state that the cost is the most important factor when making a purchase, while 47% use their cell phones to check the prices of products in the stores they visit, and ask for advice to their families and friends.

“The centennials can mean for banks a new space to explore even very virgin, since this generation is at the beginning of its financial life and has very particular characteristics. On the other hand, the predecessor generation, the millennial target, is a space to which, if the institutions have not arrived on time, it is already very saturated today” explains Oriol Ros, Global Marketing Director of Latinia.

Not like millennials

The planning and saving of the Z generation contrasts with the style of the millennials, where 40% spend more than they can or get into debt to maintain their social life. The centennials have seen closely what it means to get into debt soon, for example, the student loans of their older brothers or the mortgages of their parents, and they have a sense of the burden of getting rid of them over time.

“Evidently by age it is impossible for centennials to have great savings, but their attitude is to save. Thus, any product or service that encourages them to save, give them advice, keep them informed and with the feeling of control over their finances, will provide them with security over their financial life. Young people belonging to this target love the loyalty programs of financial institutions” says Ros.

Centennials, the new future financial companies need to aim

Centennials are intensive users of social networks and by nature feel as or more comfortable with alternative proposals for financial services, P2P services, as with any other offer of more traditional providers. Even without overdoing the physical offices.

“If the financial entities are not taking advantage of the so-called millennials, which are already profitable, it is advisable to focus on generation Z. The young people of this new target are characterized by being digital natives since they do not know another reality and do not even remember the financial implosion of 2008” concludes the expert.

Also published on Medium.

Published inFintech

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