Gen Z and the future of investing: What financial institutions need to know

The next wave of investors in Hong Kong is young, informed, and eager to start their financial journey. As more youth seek financial freedom, they’re not waiting until later in life to start investing. In fact, 21% of young Hongkongers begin their investment journey as soon as they join the workforce, while 7% dive in even earlier—even before entering the job market. Financial institutions are facing a generational shift in how investment is perceived and approached, and knowing how to engage with this group is more important than ever.

These insights were revealed during a private lunch hosted by Yahoo Finance at the MARKETING-INTERACTIVE’s Digital Marketing Asia Hong Kong conference. Based on a survey conducted by Yahoo in September 2024 with over 1,500 respondents aged 18 and older in Hong Kong, the findings offer a clear picture of how today’s youth are shaping the future of finance.

A new generation of savers and investors

The survey results highlight that young investors in Hong Kong are driven by long-term goals: wealth accumulation, increased savings, and smart investment choices such as time deposits. Gen Z values steady, sustainable growth over quick, short-term profits. They want their investments to work for them, even if that means taking a bit more risk in exchange for bigger returns.

However, what’s particularly interesting is their willingness to explore international markets. Many young investors are actively looking to diversify their portfolios with competitive products such as exchange-traded funds (ETFs) and bonds. They're keen on risk distribution, not just within Hong Kong, but globally.

“Gen Z is incredibly proactive when it comes to accessing foreign markets—whether it’s the US, European, or Japanese stock markets. They are searching for better returns,” says Francis Fung, senior market research manager at Yahoo. “They are willing to take on higher risks, particularly in sectors such as artificial intelligence, new energy, electric vehicles (EVs), and ESG (Environmental, Social, and Governance) investments.”

How to engage Gen Z: The power of authenticity and relevance

While Gen Z’s enthusiasm for investing is clear, reaching them in a meaningful way remains a challenge for marketers. This demographic is bombarded with stimuli at every turn, making it harder for brands to cut through the noise. The key to success, however, lies in authenticity and relevance.

The study reveals that when Gen Z does their research, they turn to a variety of sources: websites, social media platforms, and reports from banks. In fact, marketers are finding that social media is still a pivotal channel. However, as platforms evolve at a rapid pace, determining which ones truly resonate with this generation has become increasingly complex.

Reiko Kwok, executive vice president of marketing Asia and GM of Hong Kong at Exinity Group, points out that the constant evolution of platforms makes it difficult to predict which ones will engage Gen Z meaningfully. “New platforms are popping up every day, and marketers have to figure out which ones will lead to actual conversions,” she explains. “While influencer marketing is critical, it’s only a matter of time before the tide shifts, as consumers become more critical of paid content.”

Despite the challenges, Kwok emphasises that brands must continue to create powerful, authentic content that fosters community and drives conversion. Similarly, Ingrid Safoncik-Berry, ex-chief marketing officer at Saxo, believes that Gen Z responds best to authenticity and relevance. "Creating content and communities that feel organic, that they can share with their friends and followers, works best. It's all about trust."

The ‘Sea of Stimuli’: A constant challenge

Indeed, keeping up with Gen Z is a constant challenge. “The quest to keep up with Gen Z’s lives can’t stop—because Gen Zs never do,” adds Safoncik-Berry. With their habits and preferences evolving rapidly, brands need to stay agile.

For companies such as AGBA Group, adapting to this shifting landscape is key. Corum Chu, acting head of marketing at AGBA Group, notes that the brand’s focus for 2025 will be on emerging platforms such as Threads, which has become increasingly popular among Hong Kong and Taiwan's Gen Z. “We’re also putting more emphasis on influencer marketing, particularly with influencers who resonate with Gen Z's values.”

Johnson Chan, associate director of digital marketing at Avo Insurance, stresses the importance of aligning brand messaging with the values of Gen Z, such as sustainability and diversity. He also points out the need for tailored marketing that reflects individual preferences. “Gen Z’s preferences are constantly changing, so we must stay adaptable. Using data and analytics is critical to track the effectiveness of our campaigns and make informed decisions,” he says.

Conclusion

Understanding and connecting with Hong Kong's Gen Z is a journey that requires insight, authenticity, and a willingness to embrace change. As this generation continues to drive financial trends, financial institutions must remain ahead of the curve. Whether through targeted social media content, influencer partnerships, or adaptive marketing strategies, brands must focus on what truly matters to this young, dynamic audience: trust, relevance, and long-term growth.

“At Yahoo, we view Gen Z not just as the next generation of investors, but as a dynamic group that is fundamentally redefining how financial decisions are made. As they grow more financially literate, it’s crucial for financial institutions to recognise that traditional methods of engagement won’t suffice. To connect with this generation, institutions must embrace transparency, adaptability, and a deeper understanding of their evolving values—offering not just products, but long-term financial partnerships,” says Matthew Chan, head of advertising business, Yahoo Hong Kong and Yahoo Taiwan.

This article is done in collaboration with Yahoo Hong Kong.