Gen Z take the wheel: What’s driving the next generation of consumers?

What is driving the next generation of consumers? 

Born between 1997-2012, Gen Z are true digital natives having grown up in an age defined by the internet and social media. Their worldview has been shaped by advancing tech, economic crises, the worsening climate, and the pandemic. Let’s explore how each of these events shape their behaviour. 

‍The cost of living crisis

The world is suffering a cost of living crisis as inflation has surged in the aftermath of the pandemic and Russia’s invasion of Ukraine. Unfortunately, those with lower-incomes, including Gen Z, who are navigating the early stages of their career, are disproportionately affected. Nearly half report spending their entire monthly income on living costs. While some are having to move home with their parents as rent and energy bills continue to rise. 

Rapid technological change 

Growing up in the digital revolution, Gen Z is hyper-connected and tech savvy. A huge 98% of Gen Z use social media, with many turning to Instagram and TikTok to research products online before purchasing. This generation also demands seamless digital customer experiences with a preference for brands that offer personalised and engaging interactions. 

Climate change

This generation has grown up in a world where climate change is a prominent issue in media, scientific research, political discussions, and on social media. As a result, Gen Z are much more concerned about climate change than previous generations. We’re seeing this concern influencing their consumer behaviour, with 6 in 10 willing to pay more for sustainable products and services. And 4 in 5 saying they want businesses to help them make more sustainable purchasing decisions. Many are also putting pressure on their employers to be more sustainable, with some citing they are willing to quit and move jobs if their company fails to embrace climate initiatives. 

How financial institutions can engage Gen Z

It is clear that Gen Z care about the environment. But there exists a significant intention-action gap where people want to make a difference but don’t know how to. Gen Z is demanding more personalised, transparent information, and are looking to their banks to provide this support. In fact, our research shows that 71% of under 25s want their banks to support their sustainability journey. There’s a big opportunity for banks to provide these insights to engage Gen Z on topics they care about. 

‍Discover how Cogo's innovative carbon management solutions can help you engage Gen Z and lead the charge.