How does the asset management industry persuade Gen Z to save? Who is influencing them? Who do they trust? And which financial players look poised to gain, or lose, the most?
More than 50 percent of the world’s population is under the age of 30. But raging global inflation means most of Gen Z, born in the late 1990s to late 2010s, can barely afford to pay rent and food bills. However, Gen Z is starting to harness its increasing buying muscle (see Fig 1) and the way they view their financial choices is different to previous generations. So, who are Gen Z listening to and trusting?
Dr Michael Harrison is a senior lecturer in economics and finance at the Royal Docks School of Business and Law at the University of East London. His expertise spans microeconomics and econometrics. He warns that Gen Z have never known a ‘normal’ financial sector in their entire adult life – so far. “They have seen consistently low real interest rates and consider that to be normal.” However, thanks to a new era of brutal inflation, among other pressures such as the cost of living, the real rate of return on any asset or investment has been negative.
To discover Sigita Kotlere’s insights from Nectaro, a fintech investment platform company, click here
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