The Future of Gen Z in Global Finance

Introduction — why Gen Z matters now

Born roughly between 1997 and 2012, Gen Z is moving from classrooms into the global labor force at scale. They’re digital natives, cost-pressured, activist-minded, and willing to try new financial tools — a combination that makes them a transformative economic cohort. Companies and governments that understand how Gen Z thinks about money will capture long-term growth; those that don’t risk being left behind. 

1) A snapshot: size, employment, and macro context Globally, youth (15–24) unemployment remains a central challenge: in 2023 nearly 65 million young people were unemployed, with a youth unemployment rate around 13%. Many countries face the twin pressures of higher living costs and uneven job creation —conditions that shape Gen Z’s financial choices. Regionally, data show mixed optimism: in Deloitte’s global Gen Z and Millennial survey, roughly half of Gen Z respondents expected their personal finances to improve, even as they named cost of living and job security among top concerns. That cautious optimism — paired with pragmatic behavior — defines much of Gen Z’s approach to money. 

2) Digital-first money: fintech, apps, and social finance Gen Z grew up with smartphones and expects financial services to be mobile, instant, and social. They adopt digital banking, robo-advisors, and buy-now-pay-later or micro-investing apps faster than older cohorts. Surveys show high engagement with digital tools and social platforms for financial learning and discovery. Financial providers that deliver seamless UX, educational microcontent, and social trust signals will win Gen Z customers. Practical implication: banks must prioritize mobile-first onboarding, API-powered partnerships, and contextual financial education to lower friction and build loyalty.

3) Income, support, and affordability pressures

Recent industry analysis (e.g., Bank of America Institute) finds Gen Z increasingly contending with higher living costs and reduced family financial support compared with prior years — forcing choices between saving, paying down debt, and spending on essentials. This drives a growing emphasis on side incomes, gig work, and cost-cutting. For policymakers, the immediate priority is improving access to stable, decent jobs and targeted cost-of-living relief where appropriate; for employers it’s offering clear pay pathways, benefits, and flexible work that stabilize incomes.

4) Debt, credit scores, and the student-loan hangover Gen Z faces rising credit pressures. Recent reporting cites declines in Gen Z average credit scores (with the cohort experiencing some of the steepest drops recently), driven partly by student loans, credit-card balances, and resumed loan reporting after pandemic pauses. Lower credit scores can restrict housing access, increase borrowing costs, and slow wealth building. Actionable point for Gen Z: prioritize on-time payments, understand credit utilization, and use tools (alerts, budgeting apps, credit-building products) to rebuild or establish credit history. Lenders should offer transparent, credit-building products designed for young adults.

5) Investing habits: stocks, ETFs, and crypto curiosity

Gen Z’s investing footprint is distinct: they are more likely to use app-based brokerage platforms and to include crypto in their portfolios than older cohorts. Surveys suggest a meaningful share of Gen Z investors use crypto exchanges and view digital assets as part of a diversified strategy — even while acknowledging high volatility and risk. At the same time, interest in traditional instruments like ETFs and sustainable investments is rising as Gen Z seeks both returns and alignment with values. Practical guidance: advisors and robo platforms should offer risk-framed education, fractional shares, easy diversification tools, and explicit guidance on crypto’s risks vs. potential role in portfolios.

6) Entrepreneurship, side hustles, and new career models

Entrepreneurial intent among Gen Z is high. Driven by digital commerce, creator economies, and low-code/no-code tools, many Gen Zers launch microbusinesses, content brands, and freelance careers. This creates new demand for small-business banking, instant payments, bookkeeping-as-a-service, and affordable micro-loans. Financial ecosystems that bundle banking, invoicing, taxation help, and embedded credit for creators will see rapid uptake. Recommendation for startups: design B2B2C services that plug into creator tools and marketplaces (treasury-as-a-service, instant payout rails, integrated tax estimation).

7) Sustainability, values, and “money with meaning”

Gen Z strongly prefers brands and financial products aligned with social and environmental values. Deloitte’s and other surveys repeatedly show sustainability matters in employment and purchasing decisions — and the same is true for investing and banking choices. ESG-labeled funds, green savings products, and impact fintechs attract disproportionate interest from younger investors. Implication: mainstream asset managers must keep improving transparency and measurable impact reporting; fintechs can differentiate by delivering verified impact metrics at the point of investment.

8) Financial education: gaps and digital solutions

While many Gen Zers are confident using digital tools, measurable gaps in deep personal-finance knowledge remain (e.g., credit mechanics, tax planning, complex investing). Pew Research and other studies find roughly half of adults report moderate-to-high knowledge of personal finance — but within younger groups there’s wide variance by income and education. Digital-first, bite-sized educational content — integrated into apps and social formats — is the most effective delivery model for Gen Z. Concrete idea: embed interactive micro-courses in apps (e.g., “30-day credit workout”) with achievement badges and practical next steps (open a secured card, set a payment reminder).

9) Policy & regulation: what governments should prioritize

To harness Gen Z’s potential and reduce financial fragility, governments and regulators should focus on: Credit reporting fairness: account for pandemic-era disruptions and improve paths for young borrowers to demonstrate creditworthiness. Financial education in curricula: mandate modern, digitally delivered financial literacy in secondary and tertiary education. Support for youth employment: align active labor policies with apprenticeships, upskilling in tech and green jobs, and incentives for youth hiring. 

10) For financial services: product playbook to win Gen Z

Banks, asset managers, and fintechs should adopt a Gen Z playbook that includes: 1. Mobile-first, social-native UX with simple onboarding and low-friction KYC. 

2. Educational nudges — in-app explainers, short videos, scenario planners. 

3. Fractional investing and micro-savings to lower barriers to entry. 

4. Transparent credit-building products with real-time alerts and reporting features. 

5. Impact measurement on ESG products to back claims with data. 

These are not gimmicks: they answer the practical needs and values Gen Z lists as decisive in choosing financial partners.

11) For young people: a pragmatic roadmap

If you’re Gen Z and want financial resilience and long-term wealth building, focus on three priorities: Stabilize cashflow: build a 1–3 month starter emergency fund, diversify income with side gigs if needed. Protect credit: pay on time, keep utilization low, and use credit-building tools if you lack history. Invest sensibly: prioritize diversified, low-cost ETFs and limit crypto exposure to a small percentage of your investable assets while you learn. 

12) Risks & open questions

Macro shocks: inflation, interest-rate shifts, and geopolitical disruption could compress job markets and savings rates. Gen Z’s heavy use of digital platforms also exposes them to cybersecurity and platform risk. Regulatory uncertainty for crypto: evolving rules could affect the value, custody, and accessibility of digital assets. Companies and investors need scenario planning. 

Conclusion —

a generational inflection point Gen Z’s financial identity is already distinct: digitally fluent, value-driven, entrepreneurial, and cautious in equal measure. They will shape demand for banking, investment, and labor markets for decades. Institutions that combine rigorous risk-management with nimble, values-led product design — and that invest in trustworthy, education-first relationships — will capture the loyalty and economic power of this generation. The opportunity is large; the clock for adaptation is ticking.