How Gen Z's digital lifestyle is changing fintechs' ops

Fintechs are now tailoring features to win Gen Z early on in their financial journey

- Sowmya Ramasubramanian & Mansi Verma

Buoyed by higher starting salaries and more disposable income, Gen Z—people born after 1996—are leading the transformation in the financial services business.

Fintechs such as e-commerce platform Flipkart-backed super.money, Grip Broking Pvt. Ltd, and Scapia Technology Pvt. Ltd, are now tailoring features to win them early in their financial journey. From product design shifting from long-term, rigid products to flexible, high-engagement tools matching younger users' short attention spans and appetite for control, fintechs are rethinking their offerings.

Stride Ventures and Anicut Capital-backed retail investment platform Grip Invest introduced the "sell anytime" feature in March, allowing investors to sell bonds at any time after holding them for two months.

Early results show improved retention, higher engagement, and lower customer acquisition costs. Grip's customer acquisition costs dropped by 25% as a result of higher conversion rates from new and existing users, according to Vaibhav Laddha, chief executive of the company.

"Most bonds are considered illiquid due to longer maturity periods. We launched the feature to create instant liquidity as the new generation is averse to long-term investment commitments," Laddha told Mint.