How Fintech is Changing the Way Gen Z Manages Money with Lilah Raynor

Americans are feeling the pinch in their wallets, with fears of a government shutdown looming and prices for everyday goods and services rising. Consumers have been on an economic roller coaster for a few years due to COVID-19, which left millions jobless, and George Floyd's murder, which sparked national protests for social justice. These events have caused a ripple effect throughout the economy, leaving many people struggling to make ends meet. During the COVID-19 pandemic, many consumers went from overspending to spending far less as household incomes fluctuated. Those who could afford to spend increased their e-commerce purchases and invested in new financial instruments like cryptocurrencies. However, with the continuing economic uncertainty, consumers are generally being more cautious with their spending. Generationally, Gen Z consumers aged 16 to 25 have proven resourceful when it comes to personal finance, particularly “Zennials” (also known as “Zillennials”), older Gen Z and younger Millennial consumers on the fringes of their cohorts. But unlike Millennials, who as a generation are struggling to catch up to where they should be from a savings perspective due to factors like student loan debt and pandemic losses, have struggled to plan. But their younger siblings, Gen Z, have watched and learned, leaning into advice from family and friends on what to invest in and leveraging fintech tools to manage their money. Fintech is addressing the gaps in financial planning by meeting consumers where they are – online. Thus, the rise of fintech apps enabling consumers to forgo traditional banking models and embrace digital tools to handle money matters. This has become particularly important to underserved consumers who experience banking differently. Younger generations are open to using AI-based tools for money management, but they still value human input from parents and financial advisors. On this episode of The New Mainstream podcast, Lilah Raynor, CEO of Logica Research, explores the money management habits of Gen Z and Millennials and sheds light on AI's impact on financial services.