Can one generation change where people put their money and how the market behaves?
This report sets out why that question matters now. The cohort totals tens of millions in the US and commands vast spending power globally. Those facts help explain why platforms, products, and advisers are rethinking strategy to attract young wealth builders and influencers.
Data show many young investors use fintech first, spend more time on trading apps, and favour low-cost funds and services. These choices already nudge distribution, product design, and engagement across the market.
The analysis draws on account trends, platform use, and behaviour to map likely investment growth paths. It links global evidence to practical insights for UK firms, advisers, and investors.
Readers seeking deeper data and context can consult a focused overview of the future of investing, which informs several of this report’s findings.
Key Takeaways
- Young investors shape demand for low-cost, app-first investment options.
- Platform usage patterns signal shifts in distribution and product design.
- Account choices show a mix of traditional and fintech adoption.
- Near-term trends suggest fresh sources of investment growth.
- UK firms should adapt engagement and proposition strategies now.
The present landscape: why Gen Z matters to today’s financial markets
A large, digitally native cohort has shifted expectations about immediacy, fees, and the role of apps in money decisions.
There are 68.6 million in the US, about 20% of the population, and global spending power close to $450bn (BBC). In the US alone, the estimated spend stands at $360bn. These figures move this group from an emerging audience to a central consumer for product planners.
Investor demographics are changing. Only 66% hold a traditional brokerage account compared with 92% of Boomers; 23% use only fintech, versus 5% for older cohorts. That shift alters where investment flows and product distribution land.
Cohort scale, tech use, and the weight of debt
Mobile activity matters: time on finance and trading apps doubled during the pandemic, and 87% use banking apps regularly. Technology and apps widen access to information and basic tools, speeding first-time participation.
Student loans exceeded $1.7tn in Q3 2020, a factor that affects disposable income, risk tolerance, and product choice. Firms must reconcile legacy systems with modern platforms to deliver seamless account journeys and reliable in-app information.
- Scale and spend make this group strategically important.
- Digital behaviours point to lasting structural change in distribution.
- Debt levels influence saving, investment, and product demand.
How Gen Z is reshaping financial markets with new saving and investing habits.
Younger investors often choose app-centred services that cut friction and lower entry costs.
Fintech-first behaviour versus traditional brokerages and banks
Platform simplicity has shifted channel choices. MacroMonitor finds 23% of this cohort use only fintech for investment, compared with 5% of Boomers. At the same time, 66% still hold a traditional brokerage account versus 92% of older investors.
Design, access, and trust: UX/UI, low friction, and mobile-first platforms
Minimalist interfaces reduce cognitive load. Robinhood is often cited for this design approach, and frictionless onboarding normalises first-time investing through low minimums and clear steps.
Social media, finfluencers, and bite-sized education shaping decisions
YouTube and short-form media dominate search for financial information. Creators influence choices, so transparency and disclosures remain vital to protect users.
Cost sensitivity and financial inclusivity as core values
About 80% seek the lowest-cost services. In-app education, simple tools and easy withdrawals support independence, improve management and widen access financial for those with limited money.
“Clear information architecture supports better decisions and builds trust.”
- App-first approach lowers barriers.
- UX is trust, not garnish.
- Creators shape learning but need clear disclosure.
From saving to strategy: early entry, diversified portfolios and private markets
Starting sooner, even with modest sums, can meaningfully change long-term outcomes thanks to compound returns.
Starting earlier than previous generations: the compounding advantage
Early participation matters. Arta finds 54% of its cohort began investing by age 21, while Millennial Millionaires started at about 23. That head start gives time for savings to grow through compound returns.
Beyond stocks and bonds: alternatives, private equity, and private credit
Younger investors move beyond a simple 60/40 mix. Bank of America reports that three in four investors aged under 44 see stocks and bonds as insufficient.
Among Arta members, roughly half hold at least one private market investment. Better access has made alternatives a recognised option for portfolio diversification.
Balancing opportunity with risk: education, due diligence and credible advice
Access alone is not enough. The Arta advisory team stresses that education, scenario analysis and clear disclosure are essential before choosing less liquid investments.
Good advice focuses on fees, liquidity, suitability and documented goals. A repeatable approach to rebalancing keeps a portfolio aligned to life stages.
| Metric | Gen Z / Younger Cohort | Millennials / Peers |
|---|---|---|
| Started investing by age 21 | 54% | Approx. 23 (average start age for Millennial Millionaires) |
| Hold private market assets | 51% | 47% |
| View stocks & bonds as enough | ~25% (implied) | ~25% (implied) |
Takeaway: early action, a diversified portfolio, and trusted advice improve the odds of steady growth. Regular reviews, realistic expectations, and solid due diligence turn interest into lasting investment outcomes.
Implications for the UK market: platforms, regulation, and investor outcomes
Platforms that combine low costs, clear guidance, and simple journeys will find the biggest opportunity among younger users.
UK firms, advisers and app builders face a practical choice: adapt product design, content and onboarding to reflect digital-first research habits. MacroMonitor data showing higher fintech-only use and wider app engagement suggest that seamless journeys and affordable fees are commercial musts.
Opportunities for investment firms, apps, and advisers to engage a new generation
Design teams should prioritise quick comparisons, easy tools, and timely insights that support everyday decisions.
Advisers can add value by turning complex analysis into clear, actionable advice that supports savings and portfolio management.
Policy, disclosure and literacy: protecting investors while widening access
Regulators and firms should aim for transparent costs, better digital disclosures and proportionate protections. Debt levels and limited money for some users mean affordability checks and nudges will help pace contributions without excluding access financial goals.
“Clear disclosure, simple warnings and practical education raise outcomes and build trust.”
- Test products with multiple generations to refine features.
- Use social media formats that teach, not just attract attention.
- Collaborate across firms, educators and advisers to raise digital literacy.
Conclusion: How Gen Z is reshaping financial markets with new saving and investing habits.
A mix of earlier starts, app-first discovery and appetite for alternatives points to lasting change in how people manage money. These shifts show that earlier participation and digital tools nudge more people from basic savings to diversified investments.
Platforms, advisers and regulators face an opportunity to improve access, clarity and support. Clear information, timely advice and simple automation can help households handle debt and steady contributions.
For the future, the best approach combines practical education, sensible strategies and regular account reviews. That blend gives investors better odds of steady growth and stronger financial independence in a changing market.
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