The $2 Trillion Opportunity: How Gen Z is Transforming India’s Financial Services Landscape

India is witnessing a seismic shift in consumer spending patterns, with Gen Z at the forefront of this transformation.

By 2035, Gen Z's consumption is projected to surge to an astounding $2 trillion, accounting for 50% of India’s total consumption spending.

As this generation embraces financial independence and digital-first lifestyles, the fintech industry stands on the cusp of a significant growth opportunity.

Let’s break down why this shift is so crucial and how it will shape the future of financial services in India.

Gen Z’s Financial Muscle: The Driving Force of a New Economy

Currently, Gen Z contributes $860 billion to India’s consumption spending. This figure is set to more than double, hitting $2 trillion by 2035.

This growth trajectory points to one thing: Gen Z will dominate India's consumption economy in the next decade.

Here's why this is pivotal for the financial services and fintech industries:

1. A Shift Toward Financial Independence:

Gen Z is not just contributing indirectly through family-influenced spending. Out of the $2 trillion they will control by 2035, a whopping $1.8 trillion will come from direct spending, i.e., purchases made with their own earnings.

Today, this direct spending stands at $200 billion, indicating the growing independence of this generation as they enter the workforce and attain higher disposable incomes.

For financial institutions, this means a new wave of digitally-savvy customers who will demand innovative and easy-to-use products.

2. Changing Preferences for Financial Products:

As Gen Z gains more control over their spending, their preferences for financial products will shape the industry.

From digital banking solutions to investment platforms tailored to their goals, the fintech industry must adapt to meet the needs of a generation that prioritizes speed, convenience, and transparency.

Visual Content: The Language of Gen Z

Gen Z isn’t just transforming spending patterns, they’re also redefining communication.

Nearly 80% of Gen Z is captivated by visual content, marking a stark difference from previous generations. The shift toward visual communication represents an immense opportunity for fintech companies to rethink their customer engagement strategies.

1. Immersive User Experiences:

To effectively engage Gen Z, fintech platforms need to invest in immersive visuals. According to recent data, 77% of Gen Z uses visuals as a primary mode of communication, and 78% prefer varied forms such as GIFs and stickers in chats.

Financial platforms that incorporate visually-rich, user-friendly interfaces will have a competitive edge.

2. Enhanced Digital Advertising:

With Gen Z being highly receptive to visual stimuli, fintech companies have a golden opportunity to leverage visual content marketing. Be it social media campaigns, explainer videos, or interactive app designs, capturing this generation’s attention through engaging and informative visual content will drive higher customer acquisition and retention.

Why Fintech is Poised for Massive Growth

The rapid rise in Gen Z's spending power, combined with their digital-first mindset, presents a unique growth opportunity for the fintech industry. Here's how:

1. A Digital-First Generation:

Gen Z is synonymous with digital adoption. This generation is comfortable using mobile apps for banking, investing, and payments. The ease with which they navigate digital platforms will accelerate the adoption of fintech solutions.

Fintech companies need to be ready with seamless, intuitive apps that cater to Gen Z’s expectations of fast, efficient, and secure financial services.

2. Demand for Personalized Financial Solutions:

As Gen Z enters the workforce and accumulates wealth, they will demand personalized financial services that reflect their unique goals, whether it’s saving for the future, investing in sustainable ventures, or purchasing digital assets.

Fintech platforms that offer tailored solutions, real-time insights, and robust customer support will thrive in this evolving market.

3. The Rise of Micro-Investments and Social Trading:

Fintech platforms catering to micro-investments and social trading will become increasingly popular among Gen Z. This generation values community-driven experiences, and platforms that enable peer-to-peer learning, collaborative investments, and social engagement will see significant traction.

Preparing for a Gen Z-Dominated Economy

As Gen Z’s consumption reaches the $2 trillion mark by 2035, the financial services industry needs to prepare for this new era of digital-first consumers. The fintech industry, in particular, stands to benefit immensely by:

Building trust through transparency and providing easy access to information.
Developing intuitive, visually-driven digital platforms that resonate with Gen Z’s communication style.
Creating personalized, fast, and efficient financial products that match their lifestyle and values.

Conclusion: Seizing the $2 Trillion Opportunity

The rise of Gen Z as a powerful economic force cannot be ignored. For the financial services sector, and particularly for fintech companies, this is a once-in-a-generation opportunity to revolutionize how financial products are delivered and consumed.

By focusing on innovation, visual engagement, and personalized solutions, fintech companies can become integral players in this transformative landscape.

The future of India’s economy is bright, and Gen Z is lighting the way.

Viso, with its innovative approach, is perfectly positioned to capitalize on the $2 trillion opportunity created by Gen Z's growing spending power.

With Gen Z's strong preference for digital-first solutions and visual communication, Viso's video call platform offers a unique way to connect with this tech-savvy generation. Through on-demand video consultations with financial experts, Viso caters to Gen Z’s need for quick, direct, and personalized advice.

These real-time, face-to-face interactions give Gen Z the trust and transparency they seek when making financial decisions.

By integrating immersive visual elements into the platform, such as easy-to-understand data visualizations and personalized recommendations, Viso ensures that financial services become more accessible and engaging for this visually-driven generation.

In addition, Viso is leveraging the power of Generative AI to enhance the customer experience and meet Gen Z’s expectations of convenience and immediacy.

The platform's AI-driven Smart Assist tool analyzes individual financial needs, offering tailored recommendations in real-time, further streamlining the decision-making process.

This combination of AI-powered insights and human expertise through video consultations enables Viso to provide a seamless, personalized experience that resonates with Gen Z.

As Viso continues to innovate and adapt to the preferences of this new generation, it is well-equipped to become a leading player in the financial services industry for Gen Z consumers.