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Why GenZ and DeFi Make the Perfect Match

Genz & DEFI

This article is contributed by CEO & Founder, Kreatorverse, Yuvaraj Thanikachalam


As founder and CEO, I constantly interact with people from all walks of life and demographics. Especially in the talent acquisition efforts, I find myself in the company of those with varied career experiences – both in domains and career spans. We’re always looking for fresh, vibrant talent, so I often speak with the digitally-native GenZ workforce.

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During my interactions, readings, and research, I found that GenZ—born between 1996 and 2010—and decentralized finance-based products and solutions perfectly match. For financial institutions and fintech operators, here’s a market ripe for the plucking – provided you innovate and meet them where they are.

Knowing Generation Z

This is the first generation to grow up with the internet as a daily routine. With technology at their fingertips—right from their infant days—they are naturally savvy with everything digital. Consequently, they expect the same from the brands and services they consume.

GenZ represents about 60% of the user base in the metaverse.

Source: Deloitte x VentureBeat

Also known as Zoomers—thanks to their fast-paced embracing of everything from social issues to tech and innovation—this generation has a Millennial outlook on life in some parts and a unique outlook that makes them, well, GenZ.

  • They view consumption more from the lens of accessibility rather than outright ownership.
  • That said, they value autonomy and complete control over what’s theirs.
  • The capitalistic charms of the world disillusion them and hence demand transparency.
  • They care deeply about inclusivity – in social change, policies, education, and day-to-day life.
  • Speed is a mandate, not a good-to-have. They look for brands and services that can keep pace with their desire for innovation in a sustainable manner.

It’s why GenZ and DeFi make such a good match – the value systems align perfectly.

According to McKinsey, GenZ accounts for the biggest share of fintech users. 29% of GenZers using fintech hold more than one account.

GenZ seeks platforms that resonate with their desire for transparency, ethical investing, and, importantly, user-friendly experiences that mesh seamlessly with their digital-first lifestyle. Beyond the now, they’re deeply invested in securing a financial future that’s stable and inclusive and can adapt as rapidly as their tastes and the world around them do.

Moreover, it’s Finance 101. The closer we are to our retirement years, our investments should be more conservative. GenZ is the youngest in the workforce. They can satiate a high-risk appetite that Boomers cannot.

Retirement Investment by Generation

What does GenZ yearn for in their quest for a secure financial future?

They crave security, yes, but not at the expense of flexibility and innovation. They’re not content with the slow, opaque processes of traditional banking.

They want real-time, on-the-go financial solutions that offer control over their investments, insights into their spending, and, most importantly, the ability to contribute to a sustainable and equitable global economy.

Amongst GenZ investors, 42% have put money into crypto, compared with 38% of millennials, 22% of Gen X, and 7% of boomers. GenZ women are 50% more likely to invest in digital assets than other generations.

Source: World Economic Forum

This is where DeFi steps in, bridging the gap between GenZ’s ideals and the current financial offerings. By throwing open the doors to financial inclusivity, bypassing traditional gatekeepers, and offering a transparent, efficient, and egalitarian approach to finance, Web3-powered finance holds the potential to serve this generation effectively.


Financial Institutions and Fintechs: Embrace DeFi to Stay Relevant

Failing to do so risks alienating the GenZ market, a demographic that’s not just the future of finance but is already starting to dictate its direction.

By integrating DeFi principles and technologies, you can align yourself with GenZ’s values and expectations, offering innovative products and services that resonate with this generation on a deeper, more personal level.

Scaling to Web3 is the way forward, but it’s a path that’s not free from challenges. To embark on this journey, you need a partner – a trusted co-creator with deep expertise in Web3 tools and tech and a proven track record of delivering successful DeFi projects for innovators across the globe.

To wrap up – don’t ignore GenZ’s appetite for novel financial products and services, and don’t try to get them to conform to traditional systems. Instead, adapt to their needs, and they’ll reward you with loyalty. After all, they are one-third of the world’s population.


This article is contributed by CEO & Founder, Kreatorverse, Yuvaraj Thanikachalam


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