The world is incredibly changing at accelerated speed. Our capacity to rapidly adapt to new trends, technologies and generational changes is becoming more crucial than ever to remain relevant and stay ahead of the game in this hyper-competitive ecosystem.
In this context, a new generation of influencers is on the rise. We are now in front of a unique social emerging phenomenon: the Gen Zers - the first-ever generation of truly digital natives, which are rapidly reshaping the banking and finance world, gaining prominence as a key consumer segment and becoming the new influencers of tomorrow.
As this group continue to expand, enter the workforce and get more spending power, their impact in culture, technology and retail consumption will be profound. With this in mind, and with the purpose of helping our bank clients effectively connect with this group, at Visa we want to share some important insight behaviors, which based on global trends, can help financial institutions design specific strategies and product portfolios to better attract and retain these youngsters.
Hyper-tech generation. What makes this next generation of consumers unique is that these digital natives (born in mid-1990s to 2000s) have never lived a life without internet. From their early youth, they have been exposed to technology, social media and mobile devices. In fact, nearly 99% of Gen Zers either own a smartphone or have access to one. And as they have grown up with advancing technology, they expect brands that are “continually evolving” and “adopting new technologies”.
Constantly connected is the norm. In sync with their digital savviness, we’re talking about a group that is hyper-connected, resourceful and quick-minded; a generation that must be reached across multiple channels with clear-cut messages. Gen Zers take 8 seconds to decide wether content is worth their time, use up to 5 devices at a time and check social media about 100 times a day.
Social media era. Gen Zers are also shaping the new era of social media and social commerce. Gen Z has the highest engagement with social media of all generations – with 99% saying that they actively used social media or chat applications in the past 6 months. Additionally, 85% uses different social media channels to learn about products[4]. Snapchat, TikTok, Instagram and Facebook are their preferred social platforms
Engaging through gaming and the Metaverse. Gaming has also become the top media entertainment for Gen Z and is turning into an important part of their day-to-day social life and identity. In addition, the Metaverse is also creating new opportunities to engage with this generation. In fact, based on research we carried out in the US, UK, China, and Japan, 70% of Gen Z gamers expect to hang out in game/virtual worlds without playing the game
Digital banking. In terms of banking and payments, Gen Zers carry out most of their banking and financial transactions online and clearly prefer digital and mobile channels. Indeed, a recent study by Logica Research revealed that “more than 6 in 10 Gen Zers said mobile devices were their most popular method for digital purchases.”
Also importantly, Gen Z are increasingly using debit cards and may transition faster to credit cards and other alternative options such as P2P platforms and Buy Now Pay Later (BNPL).
They are also embracing new asset like crypto with 59% of Gen Z believing they could become wealthy by investing in cryptocurrencies. There is no doubt that Gen Zers are making waves as the world’s most socially focused, digital savvy and educated generation; a group that already account for 26% of the world’s population. So, all participants from the payments ecosystem must rise to the challenge of connecting to these youngers through innovative digital banking experiences to unlock more business growth and capture the loyalty of the world’s fastest-growing consumer group that is reshaping the future of commerce.
To learn more about Gen Z, download the complete report in English.
[1] Gen Z statistics 2022: how many people are in gen z? 2022
[2] Setup marketing matchmakers. Marketing to Generation Z Infographic. https://setup.us/infographics2/marketing-to-generation-z
[3] Newzoo Consumer Insights - Games and Esports (weighted average across 36 markets covered). Base: Representative profile of Gen Z (born 1995-2009) (n=25,659) https://newzoo.com/consumer-insights/games-esports
[4] Gen Z statistics 2022: how many people are in gen z? 2022
[5] Insider Intelligence | eMarketer, April 2021. https://www.emarketer.com/content/gen-z-preferred-social-platforms
[6] Newzoo Consumer Insights - Games and Esports 2022 (weighted average across 36 markets covered)
[7] How Gen Z is embracing digital payments. https://www.emarketer.com/content/how-gen-z-embracing-digital-payments
[8] Gen Z’s payments journey begins. Javelin Strategy & Research, November 2021. Values may not sum to 100% due to rounding. https://javelinstrategy.com/research/gen-zs-payments-journey-begins
[9] A majority of Gen Z investors think crypto will make them millionaires, new survey shows. https://markets.businessinsider.com/news/currencies/gen-z-crypto-survey-bitcoin-ether-dogecoincryptocurrency- investing-2021-11
[10] Gen Z statistics 2022: how many people are in gen z? 2022