How Gen Z and Millennials Will Shape the Fintech Industry
The influence of Millennials and Gen Z on the development of fintech is becoming increasingly important, meaning that companies should consider their preferences and financial habits.
Analysts at UnaFinancial estimate that the share of fintech users from Generations Y and Z in Southeast Asia could rise from 65 percent in 2024 to 79 percent by 2030. The experts considered six Southeast Asian countries: the Philippines, Indonesia, Vietnam, Thailand, Singapore, and Malaysia.
They estimated that at the end of 2024, there were about 400 million unique fintech users. Among them, 127 million belonged to Millennials (31.8 percent of the total), 134 million – to Gen Z (33.4 percent) and 139 million – to Gen X & Boomers (34.8 percent).
UnaFinancial is a group of companies developing easy-to-use digital financial solutions across Asia and Europe. The organization has already served more than 19 million clients, granting access to loans worth over $2 billion.
Maximum Flexibility
The experts anticipate that by 2030, the total number of fintech users in the region could grow to 505.6 million. Meanwhile, the share of Millennials among them will reach 40.9 percent, Gen Z will make up 38.5 percent, and the remaining users will account for around 20.6 percent.
Based on public data and surveys, the analysts point out several trends related to the financial habits of younger generations. For instance, both generations demand maximum flexibility and personalized approaches, valuing customer experience and convenience.
Much Trust in Fintech Companies
Millennials are likely to pay for the excellent customer experience, whereas 77 percent of Gen Z in Singapore say they are willing to pay more for things that simplify their lives. Therefore, fintech companies should invest in personalized solutions and offer high-quality customer service.
The analysts also point out that young people increasingly trust fintech companies, which creates opportunities for developing alternative financial products, such as lending and payment solutions.
Informed Investment Decisions
In terms of investing, the availability of educational materials that help users make informed investment decisions is an important factor. A survey found that while 80 percent of Gen Z and Millennials invest, 6 in 10 respondents were «very new to» or «have a basic understanding of» investing. Additionally, 38 percent of Millennials and 26 percent of Gen Z in Singapore believe they lack knowledge in managing finances.
Remarkably, 79 percent of Millennials and 75 percent of Gen Z believe sustainability is important. This presents opportunities for environmentally and socially responsible fintech companies to integrate solutions meeting such requirements.
Leading the Market
«Financial habits of Millennials and Gen Z significantly impact the development of the fintech industry. In this context, fintech companies must understand how the needs of these generations are changing to adapt their services and remain competitive. Those who focus on digital demand, provide a high level of personalization and customer service, and consider requests for sustainability and innovation have higher chances of leading the market.»
