Analysts at UnaFinancial predict a significant shift in Southeast Asia’s fintech user demographics, with Generation Z and Millennials potentially comprising 79 per cent of the total user base by 2030.
This is a substantial increase from the estimated 65 per cent in 2024.
This growing influence necessitates fintech firms to adapt their strategies to cater to these younger generations’ preferences and financial behaviours.
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The analysis, which considered six Southeast Asian nations – the Philippines, Indonesia, Vietnam, Thailand, Singapore, and Malaysia – estimated approximately 400 million unique fintech users at the close of 2024. Of this total, Millennials accounted for 31.8 per cent (127 million), Gen Z represented 33.4 per cent (134 million), and Gen X and Boomers constituted the remaining 34.8 per cent (139 million).
Looking ahead to 2030, experts at UnaFinancial anticipate the total number of fintech users in the region could reach 505.6 million. Among these, Millennials are projected to make up 40.9 per cent, Gen Z 38.5 per cent, with the remaining users accounting for around 20.6 per cent.
The analysts, drawing on public data and surveys, highlighted several key trends in the financial habits of younger demographics. A prominent observation is the demand for maximum flexibility and personalised approaches, with both generations placing a high value on customer experience and convenience.
Notably, Millennials are inclined to pay for an excellent customer experience, while 77 per cent of Gen Z in Singapore indicated a willingness to pay more for solutions that simplify their lives. This underscores the importance of investing in bespoke offerings and superior customer support for fintech companies.
Furthermore, the report suggests a growing trust among young individuals towards fintech companies, paving the way for developing alternative financial products, such as lending and payment solutions. In the realm of investing, the availability of educational resources to facilitate informed decision-making is crucial.
A survey revealed that while 80 per cent of Gen Z and Millennials engage in investing, six in 10 respondents described themselves as “very new to” or possessing “a basic understanding of” investing.
Additionally, 38 per cent of Millennials and 26 per cent of Gen Z in Singapore expressed a perceived lack of knowledge in managing finances.
Interestingly, 79 per cent of Millennials and 75 per cent of Gen Z consider sustainability to be important. This presents a significant opportunity for environmentally and socially conscious fintech companies to develop solutions that align with these values.
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“Financial habits of Millennials and Gen Z are having a significant impact on the development of the entire fintech industry. In this context, it’s crucial for fintech companies to understand how the needs of these generations are changing in order to adapt their services and remain competitive. Those who take into account digital demands, provide a high level of personalisation and customer service, and consider requests for sustainability and innovation have higher chances of leading the market,” UnaFinancial analysts said.
UnaFinancial is a group of companies focused on developing user-friendly digital financial solutions across Asia and Europe. It aims to provide accessible and reliable finance through innovative technologies, prioritising customer needs. Since its inception, UnaFinancial has served over 19 million clients and facilitated loans worth over US$2 billion.
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