Investing for the next generation

Younger generations are more engaged in managing their wealth and building portfolios that reflect their values.

Their attitudes to investing are shaped by social media and online communities. More than 50 per cent of Gen Z and 44 per cent of Millennials cite social media as the top reason they’re more actively involved in investing.

“For the next generation of investors, their first instinct is to turn to online platforms, communities and apps. They are more comfortable tapping into this huge explosion of information,” explains Lay Choo Ong, Global Head of Segments, Sales & Client Propositions in our Wealth & Retail Banking business.

Almost a third of Gen Z begin investing in university or early adulthood, compared to 15 per cent of Millennials, 9 per cent of Gen X and just 6 per cent of Baby Boomers.

Lay Choo attributes this to “greater financial education and easy access to investment opportunities”.

>50%
of Gen Z cite social media as the reason they invest more

This approach is working. Almost half of Gen Z are on track to maintain their current lifestyle in retirement, the highest of any generation (compared to 40-42 per cent for older generations).

“The next generation is not just starting to invest earlier, they’re also diversifying beyond traditional assets,” explains Lay Choo. “They’re very keen on digital assets, fractional investing, and impact investing”.

Almost half of Gen Z expect to maintain their lifestyle in retirement 

Three-quarters of younger high-net-worth investors (HNWIs) – those with more than USD1 million in assets – believe that relying solely on traditional stocks and bonds to achieve above-average returns is no longer feasible.

For Gen Z and Millennials, cryptocurrencies are more popular than traditional bonds and funds, although shares remain their top asset class. For Gen X, and Baby Boomers, cryptocurrencies were the least popular out of these four types of assets.

Younger generations have also adopted a more values-driven approach, using their portfolios as expressions of identity and purpose. Close to three-quarters of Gen Z and two-thirds of Millennials across North America, Europe and Asia Pacific were “very interested” in sustainable investing, according to a recent survey, compared to less than a quarter of Baby Boomers.

“Our Next Gen clients are articulated around purpose – what they want to achieve, how they want to achieve it, and the type of partners they want to work with to get there.” explains Mohamed Keraine, our Global Head of Digital, Wealth & Retail Banking. 

~70%
of Gen Z and Millennials are very interested in sustainable investing.

Through a range of alternative and sustainable investing options, including ESG-focused funds, we support clients looking to incorporate their values and personal priorities into their long-term portfolios.

Younger generations manage their money from smartphones, across borders, and with real-time support when needed – using investing tools and platforms that fit their lifestyles.

“As well as being digital natives, our Next Gen clients are also the most globally connected,” explains Lay Choo, Global Head of Segments, Sales & Client Propositions in our Wealth & Retail Banking business. “They value the ability to live, work and invest across borders more than previous generations.”

50% 
of Gen Z HNWIs have recently relocated or plan to imminently

According to a survey reported in the Financial Times, 50 per cent of Millennial HNWIs moved their principal tax residence in 2024, or said they intended to do so the following year. In the same survey, half of Gen Z HNWIs had recently relocated to a new market or planned to do so imminently.

With dynamic and cross-border identities, they expect support and platforms that travel across markets as seamlessly as they do.

“Younger generations expect mobile-first experiences, hyper- personalisation and instant interactions.”

Mohamed Keraine
Global Head of Digital, Wealth & Retail Banking

According to Accenture’s Global Banking Consumer Study 2025, banking customers typically hold two bank accounts and two digital wallets on average, across all generations.

While research shows digital banking has now become mainstream across generations, there’s a real divide around expectations. 

“Younger generations expect mobile-first experiences, hyper-personalisation and instant interactions.” adds Mohamed. 

“For them, mobile is the most natural and intuitive channel to discover new products and insights, understand market trends and get an aggregated perspective on their finances.”

This extends to their embrace of digital tools and platforms, which they expect to help them by default, supported by government policies in many markets around the world such as auto-enrolment for workplace pension saving.

Take the Gen Z trend of soft saving – the idea of ‘living in the moment’ while also saving for the future. The behaviour is driven by automated saving tools available on digital apps – such as SC Mobile – which remove the friction of monthly deductions to make saving easier.

Balancing digital convenience with personalised and human touchpoints remains crucial in building lasting relationships.

Our International Banking business does just this, blending international access with personalised support for our globally mobile clients.

Next Gen investors may start their research independently and use AI tools in their everyday lives, but they still want to talk to a financial adviser when the stakes are high.

Next Gen are open to innovative ways of getting the support they need. More than two fifths of Gen Z and Millennials report that they would allow an AI assistant to manage their investments, highlighting their comfort with new technology.

Even so, the explosion of readily available online advice will only get Gen Z and Millennial investors so far – and they know it. Despite bolder attitudes towards risk and trying new things, Next Gen investors understand the value of investing expertise.

“We’re advising many young entrepreneurs who are currently moving or restructuring their business models to become something that is more AI-enabled,” according to Yibin Huang, a Senior Relationship Manager for our International Clients, many of whom are Gen Z and Millennials.

She says that younger generations clearly understand the need to balance risk and opportunity, seeking in-depth research and asking more questions where necessary.

While they are comfortable sourcing information and guidance from a range of sources, including AI, social media or online communities, they often make investment choices collaboratively, with a human adviser.

This is especially true in complex or high-stakes decisions, such as experiencing financial shock events or volatility for the first time, according to Yibin Huang.

“That’s typically when Gen Z and Millennial clients turn to us for deeper and more meaningful discussions, to see how they can manage their business and personal risks,” she says.

“I really believe in a hybrid model, where the Relationship Manager is a continuation of the insights we deliver digitally,” explains Mohamed Keraine.

“Technology can be an amazing enabler of a differentiating customer experience. But human expertise remains critical, and it’s irreplaceable in many ways.”

Mohamed Keraine
Global Head of Digital, Wealth & Retail Banking

Our Wealth Solutions proposition brings together investment, advisory and financial planning capabilities to support clients across their wealth journey, balancing personalised guidance with global reach.