The share of fintech users belonging to Generations Y and Z in Southeast Asia could rise from 65% in 2024 to 79% by 2030, and their influence on the development of financial technology firms ( fintechs ) is becoming increasingly important, meaning that companies should take their preferences and financial habits into account, according to a recent analysis.

In considering six Southeast Asian countries – the Philippines, Indonesia, Vietnam, Thailand, Singapore and Malaysia – analysts at Latvia-headquartered fintech UnaFinancial estimate that, at the end of 2024, there were about 400 million unique fintech users. Among them, 127 million belonged to millennials ( 31.8% of the total ); 134 million, Gen Z ( 33.4% ); and 139 million, Gen X and boomers ( 34.8% ).

By 2030, the total number of fintech users in the region, the analysts say, could grow to 505.6 million. Meanwhile, the share of millennials among them will reach 40.9%; Gen Z will make up 38.5%; and the remaining users will account for around 20.6%.

Based on public data and surveys, there are several trends related to financial habits of younger generations, the analysts point out, for instance, both generations demand maximum flexibility and personalized approaches, valuing customer experience and convenience.

Millennials are likely to pay for the excellent customer experience, whereas 77% of Gen Z in Singapore say that they are willing to pay more for things that simplify their lives. This means fintech companies should invest in personalized solutions and offer high-quality customer service.

Young people, the analysts also point out, are increasingly trusting fintech companies, which creates opportunities for the development of alternative financial products, such as lending and payment solutions. In terms of investing, an important factor is the availability of educational materials that help users make informed investment decisions.

And, while 80% of Gen Z and millennials invest, a Fintech News Singapore survey finds, six in 10 respondents were “very new” to or have a “basic understanding” of investing. Additionally, 38% of millennials and 26% of Gen Z in Singapore believe that they are lacking knowledge in managing finances.

Remarkably, 79% of millennials and 75% of Gen Z believe, according to an IBM Institute for Business Value survey, that sustainability is important. This  presents opportunities for environmentally and socially responsible fintech companies to integrate solutions meeting such requirements.

“Financial habits of millennials and Gen Z are having a significant impact on the development of the entire fintech industry,” UnaFinancial analysts conclude. “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 personalization and customer service, and consider requests for sustainability and innovation have higher chances of leading the market.”