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The relationship between the new generations and money, wealth, and retirement is already directly impacting the structure of the financial sector. Unlike previous generations, Generation Z and Generation Alpha grew up in a fully digital environment, surrounded by artificial intelligence, connectivity, and access to real-time information. This scenario has been pushing banks and financial institutions to develop more intuitive, accessible, and personalized experiences. Keep reading to understand how these generations are transforming the financial sector.
The Shift in Financial Behavior
For decades, people’s financial behavior followed a fairly predictable path: steady employment, conservative investments, and traditional retirement. Generation Z and Alpha are changing that logic. These young people grew up witnessing economic crises, accelerated technological advances, and profound changes in labor relations, and that shaped a different perspective on careers, money, and wealth.
According to the Global Gen Z & Millennial Survey 2024 by Deloitte, financial stability and work-life balance are among Generation Z’s top priorities, surpassing traditional career models. Many already enter the job market looking to diversify their income through freelancing, the creative economy, and digital entrepreneurship. Moreover, 66% of young people in these generations have accounts at digital banks and avoid in-person service, according to data from Anbima.
Retirement and Long-Term Financial Planning
With Generation Z comes a profound shift in mindset around retirement. The idea of working for decades to wrap up a professional life after years of contributions is losing its appeal. For these young people, retirement does not represent the end of a career, but the opportunity to achieve financial freedom throughout their lives, with career breaks, changes in direction, flexibility, and quality of life.
In this context, the concept of digital retirement is gaining traction. Rather than focusing solely on conventional pension plans, many young people are pursuing passive income, digital assets, and supplemental retirement plans as a way to build financial independence over the long term.
Part of this shift is also reflected in the growing interest in consortiums as a wealth-building tool. Industry research already points to a significant increase in the adoption of this model among young people between 25 and 35 years old. Today, consortiums go far beyond real estate and vehicles: the variety of available plans includes travel, services, equipment, and even investments, making them a flexible option for those who want to build wealth in a structured way, without immediate debt and with installments that fit the budget of someone just starting out.
What Investments Does Generation Z Prefer?
The rise of fintechs and digital platforms has broken down the barriers to entry in the world of investments. Today, anyone with a smartphone and a few dollars available can start investing in minutes. The top investments sought by Generation Z in Brazil include:
- Variable income: stocks, ETFs, and BDRs accessible through digital brokerage apps
- Real estate investment funds (REITs/FIIs): a passive income alternative with a low entry value
- Cryptocurrencies and tokenized assets: growing interest, especially among young people aged 18 to 25
- Private pension plans (PGBL/VGBL): used as a supplement, not as a primary strategy
- International investments: global ETFs and automated portfolios through platforms like Warren and Magnetis
AI and Hyperpersonalization Are Shaping the Future of Finance
Hyperpersonalization is the use of artificial intelligence to analyze each customer’s individual financial behavior in real time and recommend products, investments, and credit limits tailored to their specific profile, and it is playing an increasingly decisive role in the new financial landscape driven by Generation Z.
AI-based solutions can create financial journeys that are more aligned with each user’s profile, boosting engagement and trust in platforms. For institutions, this technology also simplifies bureaucratic processes and reduces friction in the day-to-day relationship with customers. The challenge, however, will be to balance innovation, transparency, and human connection in a landscape where authenticity matters more than ever.
How the Financial Market Can Adapt
The transformation driven by Generation Z and Alpha goes beyond the digitalization of services. What is at stake is a behavioral shift: this audience wants autonomy, personalization, and a more honest relationship with brands. To stay relevant to these generations, banks and fintechs need to rethink not just their products, but also how they communicate and create value in each customer’s daily life. In practice, that means:
- Offering intuitive digital experiences: simple interfaces, onboarding in under 5 minutes, and chat support
- Communicating with clear and transparent language: no jargon or fine print
- Integrating financial education into the platform: short-form video content built directly into the app
- Personalizing products based on behavior: not just income profile
- Building communities and digital experiences: beyond accounts and cards
The greatest challenge will be building genuine connections in an increasingly dynamic environment driven by user experience.
Frequently Asked Questions About Generation Z and Finance
What is Generation Z?
People born between 1997 and 2012.
What is Generation Alpha?
People born after 2013.
What is digital retirement?
It is the strategy of building passive income sources through investments, digital assets, and supplemental retirement plans that allow for financial independence before or during one’s professional life, without relying solely on public social security.
Does Generation Z invest more than previous generations?
Yes. The ease of access through apps and the growing popularity of financial education on social media have led Generation Z to start investing earlier, often before the age of 20.
Which bank does Generation Z prefer in Brazil?
Anbima research indicates that digital banks such as Nubank, Inter, and C6 Bank lead in preference among young people aged 18 to 29, due to their ease of use and lack of fees.
Will Generation Z retire through public social security?
Most young people in Generation Z do not count on public social security as their primary strategy. They prioritize financial independence through investments and passive income.
Is a consortium a good option for young people?
Yes. Consortiums have become an increasingly popular choice among young people who want to build wealth in a planned way, without paying interest and without taking on immediate debt. The variety of plans available today, ranging from real estate to services and travel, expands the options for different profiles and goals.
What is financial education for young people?
It is the process of learning how to manage money, invest, and plan for the financial future. For Generation Z, this learning happens primarily through social media creators, podcasts, and investment platforms.
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