THE arrival of Generation Z (or Gen Z, for short) in the workplace has brought much intrigue and excitement. While the prior 3 generational cohorts of Baby Boomers, Gen X and Millennials have generally integrated themselves seamlessly into the corporate and decision-making hierarchy, Gen Z's embrace of candour and purpose, alongside a high degree of digital savviness, has led to fresh thinking about their business and consumption behaviours.

But one may be too quick to assume Gen Z as being unrelatable. As the pandemic pushes us deeper into a hyper-digitalised world, distinctions between generations are fading fast. Following the lead of Gen Zs, we've been compelled to adopt digital behaviours and lifestyles that have made us more like them than we realise.

And as Gen Z enters their prime spending years, with disposable income rising by around 700 per cent, it's crucial that brands understand how they connect, what they demand, and why these preferences will soon become a norm across all generations.

Shaping our digital habits

Typically defined as the cohort born between 1997 and 2012, Gen Z is native to all things digital. They have no memory of the pre-Internet world and today spend 60 per cent of their waking hours online.

When the pandemic severed physical modes of communication, it drove the rest of us to become digital natives and our behaviours to converge with those of Gen Z. Remote work and virtual communication became default, and social media our primary channel for news.

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In Singapore, initiatives to digitalise businesses such as IMDA's Go Digital scheme and the government's 5-pronged strategy to develop the city into a global eCommerce hub are shifting more of our lives online and closer to that of Gen Z.

As for frontier technologies, Gen Z is leading the way as early adopters. They are among the most eager participants in cryptocurrency (in the US, 56 per cent believe they will become crypto millionaires) and their obsession with video games like Roblox and Fortnite has inspired a surge in hype and speculation surrounding the metaverse.

Shaping our brand expectations

Along with interpersonal communication, our conversations as a society are shifting.

As the most ethnically and socially diverse generation, Gen Z subscribes to values such as inclusivity and sustainability. In addition, 74 per cent of Singapore's Gen Z feel social media gives them a voice and that they have a responsibility to speak on the issues that matter.

For example, when dining out in Singapore was prohibited in May 2021, 3 sisters in their 20s set up the Instagram account @wheretodapao to support local hawkers, swiftly garnering the support of tens of thousands of followers.

These deeply entrenched Gen Z values have seeped into broader expectations of consumer brands and fuelled the rise of 'clicktivism'. In fact, Gen Zs in Singapore scored higher than the global average when asked if social media gives them a voice (74 versus 50 per cent), and if they believe they have the power to influence brands' actions for good (91 versus 69 per cent). Globally, a majority of Gen Z favours investing in a company that agrees with their personal values, even if potential for earnings is lower.

Gen Z behaviours are redefining brand relationships as two-way conversations. Companies must listen closely to the demands of consumers and gain their trust or, at worst, face the threat of cancellation.

Shaping our financial interactions

By 2030, Gen Z will make up 30 per cent of the workforce and possess US$140 billion in spending power. To capture this segment, financial institutions are moving away from traditional transactions and towards rapidly innovating digital services.

We are already seeing the rise of robot advisers such as Syfe and Endowus - which Gen Z trusts more than their human counterparts - as well as the proliferation of digital banks, with Singapore's first 4 set to launch in 2022.

Currently, Gen Z remains underinvested and underleveraged, largely due to lower levels of financial literacy. For instance, credit card issuers are still spending up to 94 per cent of their media budget on direct mail, when they should be leveraging social media to reach the Gen Z market. These digital dwellers inhabit 6 to 8 networks on average, with 70 per cent in Singapore choosing video-led platforms like YouTube as their preferred means of learning about brands.

Financial institutions need to ramp up online marketing efforts, with messaging that is not just tactical but also informational, engaging and satisfying consumers through educational content.

For once, we're witnessing inter-generation wisdom flow backwards instead of forward as Gen Z influences other generations to adapt to their values. It's time for us to no longer regard their behaviours from a distance, but take heed of their motivations, recognise their market-wide influence, and embrace the adoption of these preferences as our own.

The writer is principal Asia-Pacific economist at Visa