Gen Z: The $74 Trillion Question Your Brand Needs to Answer
With global income projected to reach $36 trillion by 2030 and soaring to an incredible $74 trillion by 2040, gen z is on track to become one of the wealthiest generations in history.
Their spending patterns differ significantly from past generations. Gen z prioritises meaningful experiences, travel, entertainment, and strongly aligns purchases with personal values such as sustainability and social justice.
Key insights about gen z:
- Projected global income: $36 trillion by 2030, growing to $74 trillion by 2040.
- Spend nearly twice their savings, driven by lifestyle choices and rising living costs.
- Experience-focused, significantly increasing expenditure on travel and entertainment.
- Over 40% actively invest in cryptocurrencies and digital assets.
- 90% are concerned about financial stability and inflation.
- Five times more likely to use digital payment tools like Venmo.
This wealth surge primarily results from gen z entering their prime earning years, combined with significant intergenerational wealth transfers from Baby Boomers and Gen X.
Their advanced digital literacy, entrepreneurial mindset, and adaptability position them to rapidly accumulate wealth in innovative sectors such as technology, finance, and creative industries.
The Challenge
Legacy financial brands know the potential of gen z, and they’ve thrown big budgets at slick apps and mobile solutions. But here’s the problem: it’s still not landing. Gen z just isn’t feeling it.
It’s not about looking cool or having the flashiest tech. It’s about being real and actually connecting with how gen z thinks and feels. Embracing a profound cultural shift and genuinely connecting with gen z's mindset.
Why legacy brands stumble:
- Prioritising technology over authentic, meaningful connections.
- Superficial engagement on platforms like TikTok without genuine resonance.
- Underestimating gen z’s discerning nature and preference for transparency.
- Only 30% consistently demonstrate brand loyalty.
- 84% prefer brands showcasing ethical business practices.
- Strongly influenced by authenticity and social responsibility.
A clear example of this disconnect was demonstrated by a large global bank, which recently launched a youth-focused multi-currency app aimed at capturing gen z.
Despite substantial investment and advanced features, the app quickly failed.
Key issues included a lack of clear differentiation in an already crowded market, insufficient authenticity in brand messaging, slow adaptation to market feedback, internal alignment problems, and significant struggles with regulatory compliance.
Simply having advanced technology and trendy visuals was not enough without genuinely aligning with gen z's values and lifestyle.
Brands Getting it Right
NatWest Gets It Right: Building Real-Life Benefits into Products
Their student account offered practical incentives such as rail discounts, seamlessly embedding the brand into daily student life.
Additionally, NatWest provides interest-free overdrafts that scale up each year, and includes a free four-year Tastecard offering discounts at restaurants and cinemas, aligning perfectly with gen z’s lifestyle.
- Provided scalable, interest-free overdrafts to offer financial flexibility.
- Included lifestyle perks such as the Tastecard for dining and entertainment discounts.
- Enhanced user experience through a mobile app featuring budgeting tools and spending trackers.
Crypto.com Knows Gen Z Needs Knowledge, Not Just Transactions
They conduct ongoing research and surveys to develop tailored educational content that addresses users' actual needs and gaps in knowledge.
The intuitive platform simplifies cryptocurrency trading and encourages community engagement through active online forums and social media interactions.
- Conducted targeted financial literacy surveys to identify user needs.
- Developed an intuitive, user-friendly app for accessible crypto trading.
- Fostered a vibrant online community for collaborative learning and sharing insights.
DBS Bank Blends The Physical and Digital
They successfully attracted gen z by blending physical and digital experiences through its innovative "borderless branch."
Situated on a university campus, this branch provided interactive, flexible spaces, integrating lifestyle elements and digital services like chatbots tailored specifically for young consumers.
By understanding gen z's desire for community and authenticity, DBS created an environment that genuinely resonated with their lifestyle.
- Blended physical-digital interactive experiences.
- Created spaces aligned with social and educational lifestyles.
- Relevant digital services integrated seamlessly.
A Rallying Cry: How to Truly Engage Gen Z
CMOs are feeling the pressure.
Everyone’s saying gen z is the top priority and insists big investments and flashy TikTok campaigns will easily win them over.
But you know better. This approach is superficial and destined to fail.
Your "edgy" brand aimed at gen z will be ignored unless it truly resonates. Gen z demands authenticity and emotional intelligence.
In fact, Dentsu’s research reveals 70% of gen z actively seek brands demonstrating emotional intelligence, compared to just 45% of Boomers.
This isn't about trendy visuals or clever campaigns; it's about empathy, genuine transparency, and authentic connections.
It's time to drive these crucial conversations in the boardroom:
- Shift the narrative from superficial marketing tactics to deep, authentic engagement.
- Advocate strongly for genuine storytelling over superficial branding gimmicks.
- Demand transparent practices aligning closely with gen z’s values.
- Invest in creating platforms and tools that empower gen z to shape their own brand experiences.
- Promote long-term community-building initiatives rather than short-term campaigns.
- Challenge leadership to recognise gen z engagement as an integral shift across the entire business, not just a marketing issue.
gen z expects, and deserves, more from your brand than any generation before.
The question is, are you ready to meet their expectations?
