The generation's ascendance will be increased further by generational wealth transfer, the team led by Haim Israel said. Baby boomers and members of the "silent generation," which appeared before them, sit on approximately $78 trillion of household assets today, offering the youngest even more spending authority as they turn older.
The banks present today would be soon challenged by Gen Z's. Apparently, Gen Z is open to Robo-advisors and mobile-focused investment platforms. Moneylenders would soon face pressure from a lack of homebuyers as the recent generation prefers to live their whole lives in cities only. A very few would prefer moving to suburbs or rural areas, the Bank Of America said.
Gen Zs takeover of the economical power also forecasts great danger for some long-standing trends. For example, More than half of Gen Z members said they did not drink alcohol, compared with one-third of millennials. In India itself, the alcoholic-beverages industry alone in 2019-20 is to the industry of Rs 1.4 lakh crore. Hence the ups and downs are clearly visible. The youngest generation is also likely to turn considerably away from tobacco and rather take up alternative goods including marijuana which at present is illegal in many countries.
In the survey conducted by Bank of America on more than 14,000 Gen Z members said that they had several meat restrictions which in turn would boost the plant-based or vegan industries. Hence scaring the current meat selling giants. Hotel and restaurant sector would also have to renovate to online food delivery.
The industry most happy with Gen Z is e-commerce. Approximately 45% of US teens in a Bank of America study said they were "almost constantly" online. But if we take a look at the current Zillennial data then we would come to know that their top choice of payment is their phone whereas credit cards don't even reach the top three.
Old media houses like TV cable would be dead in front of Netflix and Prime. Hence affecting the shares and asset of both the parties. Telecom service providers will profit from Gen Z operating internet access "as necessary a utility as water or electricity," BofA added.