Generation Alpha and the new reality of banking.

Generation Alpha (born from 2010 onwards) has consumption habits and demands that differ from previous generations. Alphas are characterized by having a strong social and economic awareness, demanding accurate information, diversity, and inclusion, and although they are digitally native, they are not exclusive. They want to operate in both the digital and physical worlds.

This is a challenge that is demanding a new perspective from financial institutions. It's not enough to simply offer good service (digital and physical); there needs to be exchange, purpose, a sense of belonging, and – above all – pragmatism and attention to clients' finances, with personalized, fluid, lightweight, and barrier-free digital experiences. 

Generation Alpha is a more financially conscious and savvy generation, and digital banks are targeting this generation, which is already very attached to finances. Nextjoy (Bradesco), Blu (BS2), Conta Kids (Inter), C6 Yellow (C6), Z1, NG, Mozper, and NuBank itself are examples of financial institutions that already have or are studying products for this generation.

Alphas are young people who manage their own money, naturally have a habit of searching and researching online, and therefore carefully analyze products before making a purchase, especially in the digital environment. Information and knowledge are power, and they are a generation that has had this awareness from an early age.

Thus, financial education for children seems to have captured the attention of financial institutions, and especially digital banks, in the last year, and it's a trend that's here to stay. Financial institutions have realized the need to reinvent themselves and grab a share of this market.

This is not only because the topic is now a mandatory part of the National Common Curriculum Base (BNCC), but also because financial institutions have realized that this audience is becoming a relevant part of the economically active population and strongly value responsible consumption and the expression of their identity.

This month, Powpay, an Edtech/Fintech company that gives Alphas the possibility of having a digital wallet capable of controlling expenses and practicing financial education through content and practical experience (constructivist approach), sponsored the 1st Children's Financial Education Week. The unprecedented and free event was coordinated by specialist Priscila Rossi and featured prominent speakers such as Gustavo Cerbasi, Maya Eigenmann, and Vera Rita de Mello Ferreira.

Generation Alpha will continue to transform many established markets and business models. It's gratifying to see that – even at a young age – this generation is already driving change in the strategies of financial institutions and positively impacting the income generation and maintenance of future generations. Let's hope this trend continues to strengthen!