The Gen Z Effect: Sustainability, technology, and the future of finance

Tearsheet Podcast: Exploring Financial Services Together

This episode of the podcast explores how Gen Z’s penchant for bringing social issues to the forefront impacts the financial services they use and their choice of providers. We look at one particular partnership between Klarna and Good on You that demonstrates the power to serve Gen Z via a collaboration that combines sustainability with financial services. We’ll also explore how some of the largest financial institutions can navigate this new generation by more deeply understanding them – it will require some evolution, though. This conversation is part of a special podcast series where we explore the fascinating Gen Z deeper: their relationship with money, how they like to save, spend, and borrow money, their fears and aspirations, and their connections to social issues. Joining me on this episode is Salah Said, Head of Sustainability at Klarna, Dave Donovan, Head of Publicis Sapient’s Financial Services Practice in North America, and JD Shadel, Editor at Large at Good on You, which publishes data on 5,000 fashion brands’ sustainability. Tearsheet thanks our sponsor Publicis Sapient for their support. Read more and download customer research about Gen Z and financial services at SteezLife. Now, let’s talk about Gen Z, financial services, and social issues. **The big ideas** * Gen Z's Impact on Financial Services: Gen Z is reshaping the financial services industry through their strong focus on sustainability, ethical practices, and social impact. Financial institutions must adapt to meet the values-driven demands of this generation. * Sustainability as a Key Driver: Sustainability is no longer just a buzzword; it's becoming a key driver in financial decision-making for Gen Z. They prioritize financial health, social impact, and making investments that align with their values. * Technological Solutions: Technology, particularly fintech, is playing a significant role in promoting sustainability within financial services. Digital-only banking platforms, eco-friendly credit cards, blockchain, and crowdfunding are some examples of tech-driven sustainability solutions. * Collaborations for Impact: Collaboration between companies and organizations is crucial to drive sustainability efforts forward. Partnerships, like the one between Good On You and Klarna, are instrumental in making sustainability accessible and empowering consumers. * Fashion Sustainability: Sustainable fashion is gaining popularity among Gen Z, influencing their lifestyle choices and financial decisions. A growing emphasis on circularity and expecting brands to communicate their sustainability efforts are key trends. * Consumer Empowerment: Empowering consumers with information is essential. Tools that help track carbon emissions, round up change for sustainability projects, and promote ethical credit cards are becoming increasingly relevant in helping consumers make sustainable choices. * Inclusion and Affordability: Accessibility to sustainable products and financial services is vital. Large enterprises should aim to provide more inclusive financial instruments, ensuring that sustainability is not just an option for those with financial means.