The generation most pessimistic in history about the modern economic system is also the one that starts investing earlier than any other.
The proof comes from the Charles Schwab Modern Wealth Survey 2024, according to which Gen Z starts investing at 19 on average. Millennials at 25, Gen X at 32, Boomers at 35.
The proof? The CFA Institute and FINRA found that 82% of young Gen Z Americans made their first investment before the age of 21. This is no niche: 45% of them invest actively.
A generation that grew up amid the 2008 crisis, the pandemic, inflation and the housing crisis (the same crisis that denies them the chance to buy a home at prices comparable to those of the past) is entering the financial markets en masse.
A paradox that makes sense once you consider that this very distrust is what drives so much investment.
Why distrust leads to early investing
Boomers could wait until 35 to invest because they had a structural safety net: company pensions, jobs for life, an accessible property market, a robust welfare state. The system had reasons to earn their trust, and they reciprocated.
Gen Z does not enjoy the same privilege. State pensions are seen as uncertain. Many employers no longer offer job security. Buying a home is out of reach in the big cities. In this context, investing becomes a defensive choice.
Gen Z invests early because it does not trust the system. Those who cannot count on pensions, employers and institutions build, as early as possible, a reserve that depends on none of them. Investing early is an act of self-reliance, not of faith in investment itself.
The market has changed channel. Institutions have not
Yet, despite the big numbers, financial brands have not yet absorbed this shift.
62% of Gen Z say they rely on influencers for financial guidance more than on traditional advisers. 71% say social media has had a positive impact on their financial decisions. #FinTok, TikTok’s finance community, has generated billions of views on topics that banks still handle through physical branches and downloadable PDFs.
A creator on TikTok explains how ETFs work in three minutes, without jargon, with instant visuals, while answering followers’ questions. Banks, by contrast, offer an appointment with an adviser whose diary is full for the next two weeks and who has a sales target on the institution’s products.
In short, the problem is not that Gen Z doesn’t trust banks: it is that banks are not where Gen Z looks for information.
The cost of absence
All this comes at a cost.
Gen Z learning from finfluencers does not always receive accurate information. In fact, 70% of finfluencer videos on investing were found to be non-compliant with disclosure rules.
Are these figures to blame, or those who leave the main communication channel of the modern era uncovered?
Every financial institution absent from these conversations leaves the space to those with fewer scruples about filling it. In short, an active surrender of ground to unregulated voices.
A financial brand that does not take ownership of Gen Z’s financial education is, for this reason too, a brand that has chosen not to take part in shaping its future clients, leaving it to anyone else willing to do so.
What do financial brands need to change?
Imitating finfluencers is the wrong answer.
A regulated institution cannot and must not behave like an independent creator promoting investment strategies without disclosure.
If anything, what needs to be done is to build a value proposition that makes sense in that context. To find a way to communicate as a voice that brings credibility, real instruments and regulatory protection to an environment where these things are scarce.
Distrustful as it may be, Gen Z is not stupid. Traditional institutions retain credibility when they are visible and relevant. The crisis they face, then, is not one of trust but of presence.
The retail financial market of the next decade is being decided now, as Gen Z forms its habits, chooses its platforms and decides who deserves its attention. Institutions that understand this can still enter that conversation. Those waiting for the public to come looking for them as Boomers did are waiting for something that will not come.
New Connections (FAQ)
Is Gen Z genuinely putting its investments at risk, or simply diversifying differently from its parents?
Both are true, in different proportions. High exposure to cryptocurrencies increases portfolio volatility compared with those who invest mainly in index funds. The fact that 19% of Gen Z investors hold only cryptocurrencies signals insufficient diversification. At the same time, investing early partly offsets the risk: someone starting at 19 has decades of potential recovery ahead. The more concrete problem is the quality of the information on which decisions are made, often lacking context on the real risk.
Can financial brands really compete with finfluencers on TikTok?
They should not aim to compete on the same ground. A finfluencer can promise returns, display aspirational lifestyles and speak without regulatory disclosure. A regulated institution can do none of these things. What it can bring, however, is something no finfluencer can: deposit guarantees, regulatory protection, real instruments and legal accountability to the client. The value proposition is not the same as the finfluencer’s: it must be complementary. Those who grasp this distinction can build an authentic presence on these channels without breaching their institutional mandate.
How can a bank communicate with Gen Z without losing authority?
A bank should not imitate the language, promises or lifestyles of finfluencers. It can, however, adopt more accessible formats, answer the questions that genuinely arise on social media and explain instruments, risks and costs with greater clarity. Institutional credibility becomes an advantage when it is made available where young people look for information.
Bliss can help banks, fintechs and financial operators define a positioning suited to Gen Z, building an editorial strategy that coordinates language, formats, creators, compliance and brand identity. The aim is to make the institution present and understandable without weakening the safeguards that set it apart from unregulated players.
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