These days everyone is talking about millennials but fintech, banking and payment providers should be one step ahead – target and build relationships with Generation Z, customers born between 1996 and 2010, who might have developed some preferences, but aren’t loyal to one brand or financial product. Gen Z comprises 32% of the global population of 7.7 billion while Millennials account for a 31.5% share. Soon Generation Z will be getting older and start earning money. As a result, their value will increase and companies will need to engage more and provide rewarding experiences that promote brand loyalty. This generation differs from their older siblings and parents. They have access to different payment service, and they are very much influenced by friends and peers. Also, it is important to mention that ¾ Generation Z use smartphones to pay and shop online.

Armed with the knowledge that makes Generation Z tick is critical for any fintech that plans to target this tech-savvy audience. This is why we have come up with key takeaways that you should pay attention to before getting your hands on Generation Z.

Engaging with Generation Z

Generation Z is aware of technologies and their power. Therefore, they expect companies to provide personalized and ready-to-use products. In recent years, consumption has become a means of self-expression, leading to more personalized products. In turn, Generation Z is more willing to pay extra for products that express their unique identity. But this does not mean that they are not thrifty – they are just ready to pay for the added value.

Also, it is important to create a meaningful dialogue that accepts difference and diversity. Generation Z is actively shaping their identities and they don’t see a problem in changing groups and their beliefs. Companies need to find a way to engage and interact with Generation Z without pressuring them to purchase a product or services. Therefore, this behaviour requires banks and fintechs to adapt their approach and make sure that changes come from continuous interactions. In other words, companies need to reach out to Generation Z, explain and provide advice on all important aspects of payments, including budget, how to make saving and manage credit, and where to invest.

Fast-paced way of living

Z-ers usually do not have much time and their focus shifts fast because of the fast-paced and ever-changing world. It means that banks and fintech need to generate shorter forms of communications, including articles, papers, video, movies, text messages, and calls, etc. Otherwise, they will change their mind and fast-moving trends don’t help much. If companies don’t have a fast-moving cycle, Generation Z will get impatient and more likely get out of the game right away.

The on-the-go generation wants convenience – simple and fast services of authentication, identification, and payments. Good examples are social networks, like Twitter with its 280 symbols or Instagram, which was built around visual content. The same approach must be transmitted to fintech – fintech platforms must be always open, always accessible and have the flexibility to connect different kinds of services.

Price matters

Generation Z is much more sensitive to price and their preferences are changing fast in comparison to other generations. Therefore, it is difficult for businesses to raise brand loyalty and retain the customer base.

There are a handful of trends fintechs and banking players can consider reaching a billion of Gen Z members. For example, the purchasing decision of Z-ers is usually influenced by referrals. Loyalty rewards and other incentive programmes can be helpful, but it isn’t enough. Another important aspect is that Gen Z shoppers are committed to social values and sustainability. If a fintech platform wants to grow a brand base beyond price, it is recommended to work more towards socially responsible and environmental projects and initiatives. To sum up, there are three tactics you can use to tap into Generation Z – price, loyalty, and social responsibility.

Technologically and social media savvy generation

Generation Z is digital natives, because the Internet and social media have always been there for them. Most of them have had smartphones since they were very young and barely speaking. That explains why social media has a huge impact on how Gen Z sees and interacts with the world and technologies. In fact, it is difficult for them to spend even 60 minutes without checking their phone or Facebook. This is a relevant point, when fintechs are looking for ways to interact and influence Gen Z. Social media are the eyes and ears of fintech brands, whereas communications via the Internet and mobile apps, in general, are the tools of focus right now.

Driving innovations

Gen Z was born in a world where innovations and functionality matter. New digital technologies drive the way Gen Z lives. It means very soon their future will be fully automated with cars having autopilots, refrigerators with a food ordering system, smart cities and IA taking over all the industries.

Gen Z was born in a world where innovations and functionality matter. New digital technologies drive the way Gen Z lives. It means very soon their future will be fully automated with cars having autopilots, refrigerators with a food ordering system, smart cities and IA taking over all the industries.

When it comes to means of payments, Gen Z is positive and more willing to follow this evolution and innovation in banking and payment services – smart payments, smart banking, smart apps. Also, another trend is cryptocurrencies. Under the condition that companies educate Gen Z about the use of cryptocurrencies in their everyday life, Gen Z consumers will be more open and willing to use cryptocurrencies as a means of payment. So, the conclusion is that fintechs companies must continuously reimagine the products and services they offer – they must innovate and create new value for customers..

FinTech started its revolution to bring transformative innovation to financial services through the application of new and emerging technologies which address consumer needs. But consumer needs differ from one generation to another. So, the main ability of Fintechs must be adaptivity and flexibility to changes. This is what Advapay offers for Fintechs – our Core Banking and Payment solution can grow along with your business. You can start from basic solution and add functionalities as you need.


Advapay is a technology company providing the Digital Core Banking platform to empower fintech clients or digital banks to start their businesses and accelerate digital transformation. The platform delivers all essential functionalities, a front-to-back system and a set of tools to customise and bring new integrations. With Advapay, potential and existing customers can connect either to the cloud-based SaaS or on-premise software. Besides the technical infrastructure, the company provides business advisory and fintech licensing services. Interested to learn more, please drop us a message.

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