[News Terms] The Generation Sincere About Small Investments: 'Zyfinance'

Investment by Gen Z Familiar with Smartphones
Active in Art Piece Fractional Investment and App Tech

[Asia Economy Reporter Han Seung-gon] "Zinance" is a newly coined term combining Generation Z and finance, referring to recent trends in the financial sector. Generation Z refers to those born from the mid-1990s to the early 2000s, who are familiar with digital devices such as smartphones. As a result, they primarily invest using mobile applications (apps).

Since this generation tends to have limited investment funds, they are interested in financial products that divide real assets into small portions and sell them in small amounts. These mainly include ▲Art-tech ▲App-tech ▲NFT (Non-Fungible Tokens).

Art-tech refers to "fractional investment," where art pieces are divided into multiple parts and sold in small amounts ranging from 1,000 to 10,000 won units. App-tech means earning money by utilizing smartphone apps. Users participate in activities such as viewing advertisements or completing surveys provided by companies through apps, earning points that can be redeemed once a certain threshold is reached.

Financial institutions are also launching platforms and financial products exclusively for Generation Z to target the so-called Zinance market. Some banks conduct live broadcasts within their banking apps to introduce financial products, catering to Generation Z who are familiar with YouTube. Another commercial bank launched a dedicated platform to attract Generation Z, allowing transfers using "points" without requiring ID or bank accounts. Additionally, there are Zinance experiential financial services specialized for university student customers.

Securities firms are actively targeting Generation Z by shortening MTS (Mobile Trading System) menus and changing investment terms to be more intuitive. They are focusing on hyper-personalized services such as customized investment recommendations using AI (Artificial Intelligence) and big data. Not only the financial sector but also the insurance industry is targeting Zinance. Some insurance companies have launched insurance products characterized by simple enrollment through digital platforms with only identity verification, intuitive coverage details, and quick principal protection. The marketing industry expects competition to attract the MZ generation to intensify with the implementation of MyData and the metaverse.

This content was produced with the assistance of AI translation services.