New fintechs that understand and seek solutions for this audience should unlock even more of this generation’s financial potential
*Petrus Arruda is founder and COO of NG.CASH
Bank accounts opened by young people between the ages of 15 and 24 have grown by 50% in the last decade, according to the Banking Economy Report published by the Central Bank of Brazil. The survey showed that a total of 23 million accounts were opened by this age group.
But what then would be the reason for this growth and what can we expect for the next 10 years? To answer those two questions, I’ve separated a few charts that made me even more excited to build the largest finance solution for Generation Z in Latin America. First of all, let’s define what Gen Z is.
GenZ is widely recognized as the generation born approximately between the years 1995 and 2010, which currently corresponds to young people between 12 and 28 years of age. In Brazil there are more than 50 million young people of generation Z.
In Latin America, this group represents about 160 million people, or 25% of the total population of the region. The distribution by age group by country is represented in graph 1. Note the growing relevance of the group highlighted in yellow, young people between 15 and 24 years old, who are a good approximation of the generational profile we are studying in this text.
By 2030, 100% of this generation will be in the job market and will form the main customer and worker base for companies in the region by 2050, representing more than 1/3 of Latin America’s GDP. See graph 2 of how rapid and representative this generation will penetrate the economically active population.
Another characteristic of Generation Z in Latin America is financial awareness, underlined by the need to have savings for the future from an early age and their little appetite for unbridled consumption, a striking characteristic of the previous generation, also known as Generation Y or Millennials (referring to those born after the early 1980s to, approximately, the end of the century).
The percentage of young Generation Z investors in the most populous countries of the region (Brazil, Mexico, Colombia and Argentina) is higher than that of Millennials. Also observe in Graph 3, the comparison of the adoption of cryptocurrencies between the two groups. Generation Z represents 46.2% of Brazilians who invest in cryptocurrencies, according to data released by the Brazilian Association of Financial and Capital Market Entities (Anbima).
In a survey conducted by VICEa popular digital medium among young people, 35% of Gen Z respondents said they started saving for retirement in their 20s, compared with 12% of respondents born between 1982 and 1994.
The long-term stagnation of GDP growth in Latin America, as we can see in graph 4 and the development experience in an environment of uncertainty and socio-economic challenges, is nurturing an entire generation to be more independent and smarter with their money .
With technological and regulatory advancements, it is safe to say that new fintechs that understand and seek specific solutions for this audience, such as NG.CASH, will be one of the main mechanisms to further unlock the financial potential of this generation across the Latino Americas region. .
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
