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Informist, Wednesday, Aug. 12, 2026

 

MUMBAI – Generation Z, or Gen Z, is opting for financial technology apps over banks for their investments. This shift in behaviour is both a major challenge and an opportunity for banks, experts said at a panel discussion.

"It is one of the biggest risks to the banking industry... today's Gen Z first journey in finance is quite often with a discount broking app. The bank account is completely incidental," Anthony Heredia, managing director and chief executive officer of Mahindra Manulife Investment Management Pvt. Ltd., said at the Financial Institution Benchmarking and Calibration 2026. He said around 60% of new flows through systemic investment plans over the last two years have come from just four fintech apps, and 80% of these flows were from Gen Z. "... that's a massive challenge going forward. It is also an opportunity simply because... the fintech apps have moved beyond products to talking solutions," Heredia said.

 

The new generation needs more seamless and tech-oriented banking services, which banks need to adopt, experts said. "Virtual relationship managers will understand what a customer wants and reply in the same fashion," Rajiv Mishra, executive director at Bank of India, said. Heredia said these challenges facing banks also present an opportunity for them to address the changing needs of customers.  

 

To serve Gen Z customers, commonly defined as those born between 1997 and 2012, banks and other financial-services players have to understand their needs and adapt to their requirements, panellists said. "... finding next generation super sharp, they want product access and have no patience for the relationship manager to tell what they know," Satheesh Krishnamurthy, chief executive officer for high-net-worth business at 360 ONE Wealth, said at the discussion.

 

Panellists agreed that the use of artificial intelligence in relationship management will build institutional memory over time. "Technology helps us to build that future memory intact. And once I have that distribution memory, build the technology stack around it and the trust which is there with banks, I don't think there will be an issue to address any generation," Mishra said.  

 

Ambuj Chandna, managing director and head of the consumer banking group at DBS Bank India, said the role of institutions will depend on their investment in relationship managers. He said the role of technology in analysing client portfolios will increase the efficiency of relationship managers.   End

 

Reported by J. Navya Sruthi

Edited by Saji George Titus

 

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