How South Africa's Gen Z Is Redefining Financial Wellness

Unlike previous generations, Gen Z is prioritising technology-driven financial solutions, favouring convenience, accessibility, and forward-thinking financial products. Their approach to banking, saving, and investing reflects a shift in expectations.

“Gen Z is redefining financial wellness with a tech-first, savings-conscious mindset,” says Rakhee Naik, managing consultant, Insights at KLA. “Their financial behaviour is a blend of optimism, pragmatism, and a strong preference for digital solutions. Understanding these shifts is essential for brands looking to connect with this next generation of consumers.”

Key insights from YouGov profiles:

• 75% of Gen Z believe their household’s financial situation will improve in the next 12 months, indicating optimism and confidence in their financial future.
• 70% of Gen Z have a savings account, indicating a strong savings culture.
• 44% of Gen Z use their smartphones for banking multiple times daily, with features like instant payments and savings tools shaping their financial habits. Mobile banking is key to this generation.
• 40% of Gen Z use PayPal, while banking apps (38%) and digital wallets like Samsung Pay and Apple Pay (both at 27%) are gaining traction, indicating a rise in digital payments.
• Insurance adoption is increasing, with 47% of Gen Z holding funeral cover and 44% holding life insurance, showing a focus on financial protection of loved ones.
• There is a growing interest in investments, as 15% of Gen Z have invested in stocks or money market accounts, signalling an emerging interest in wealth-building products.

The data highlights a shift away from traditional banking towards digital-first financial management. Gen Z demands seamless, user-friendly, and accessible financial products that align with their digital habits. Financial institutions and fintech companies that provide customisable, tech-driven solutions are well positioned to serve this emerging market.

“Gen Z consumers expect more than just banking services, they’re looking for financial partners who can help them build long-term wealth, manage risks, and navigate the digital economy,” adds Naik. “With growing confidence in mobile payments, savings tools, and investment platforms, brands would do well to offer education, innovation, and flexibility to stay ahead.”

As this generation continues to redefine financial wellness, businesses must embrace digital transformation and forward-thinking strategies to remain relevant. For more information, www.kla.co.za.

Methodology

Profiles: Segmentation and media planning tool. YouGov Profiles makes it simple to find and understand the audience that matters most to you. With data collected daily, it gives you the power to build and customise a portrait of your consumers’ entire world with unrivalled granularity. More than 12,500 variables are available in South Africa.

Dataset: 2024-12-29

Population: South African Generation Z, aged 12-27 years old with access to the internet | n ~ 1094