Park Chae eun
Generation Z, often referred to as the 1020 generation, can be seen as marginalized in the traditional financial sector. This is because the primary source of income for financial companies comes from interest earnings, and the elderly population with substantial assets and loans has been the core target for financial institutions. On the other hand, customers in their twenties or younger, who are less active in economic activities and have limited financial resources, have been considered as a niche market.
However, Generation Z is emerging as a new force in the financial landscape. They are aware of financial activities’ significance. About 58% of young people express an interest in financial investment. Their financial values revolve around a desire for honest fulfillment of buying things, and experiencing things. So actively seeking ways to earn money for these purposes.
As for the characteristics of Generation Z as financial consumers:
First, They are comfortable with and prefer mobile, contactless services. For example, they use apps like Toss or KakaoBank. The percentage of those who use Internet banking and mobile money transfer apps as their primary means of account management is 80%.
Second, They prefer intuitive and easily understandable financial services. They primarily use apps that offer easy login through facial recognition and provide a user-friendly experience. In other words, the top criteria for choosing financial apps are convenience and intuitiveness.
Finally, They are open to various forms of new FinTech despite having limited assets. Due to their limited assets, they prefer financial investment options that offer quicker and more intuitive returns on investments compared to traditional bank deposits and savings methods. They are keen on various new FinTech methods such as reselling for profit, app-based FinTech, and earning rewards through watching ads.
Currently, the influence of Generation Z is expanding in the financial sector. With the increasing interest in investment and the digitization of the financial industry, businesses must consider Generation Z as a significant customer. Therefore, financial companies are developing tailored services that take into account the financial characteristics of young people and create intuitive and convenient services. They are also leveraging appropriate marketing strategies to keep up with the financial trends of Generation Z.
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