"Gen Z": Disruptive generation change from "Boomer" to "Zoomer"

With Generation Z (“Zoomer”), a new generation is coming to the fore that has the potential to change traditional behavior and thinking in all areas of life in the long term. Although Gen Z, the age cohort born between 1995 and 2009, is relatively small in number, it has already made its voice heard loud and clear in the global arena – such as at the worldwide “Fridays for Future”. "The 'Zoomers' are not only technologically fitter and more globally connected than any generation before them, but also self-confident and demanding for 'their' issues and values - worldwide and well coordinated through the targeted use of digital media," says Dr. Heinz-Werner Rapp, founder and head of the FERI Cognitive Finance Institute, presenting a current analysis of the FERI Institute on Generation Z.

At home on the World Wide Web

As the first true generation of digital natives who were socialized on the internet from an early age and live “online” around the clock, the zoomers are increasingly shifting interpersonal exchange from the real to the virtual world. As the phenomenon of digital "shitstorms" shows, Gen Z is using the global impact and reach of social media in a targeted manner to express their demands very directly and vehemently. A radical cultural change is in the offing here, which neither companies nor politicians can ignore.

Employers and the financial industry must adapt

Since the shortage of staff will increase significantly after the baby boomers leave, Gen Z has a very good negotiating position with employers, which they are already using with great self-confidence. Self-realization at work and flexible working models are more important to Gen Z than a high salary or social status. Surveys show that every second zoomer wants to work in a company that makes a positive impact. This puts the old work and performance culture of many companies under a completely new pressure to adapt and justify themselves.

Traditional business models under pressure

The appearance of Generation Z will also play a significant role for investors and asset owners in the coming years. In their financial habits, Gen Z have already broken significantly with their previous generations by largely shifting their financial transactions to the digital space. In addition, the next generation has a distinct set of values. “Generation Z expects companies to stand behind goals they can identify with. If this 'purpose' is missing, zoomers are immediately ready to permanently turn their backs on a brand," adds Rapp. In the future, this will result in increased pressure on business models that cannot demonstrate a clear connection to universal goals such as climate protection or diversity. Corresponding risks in affected sectors should be recognized and understood by investors at an early stage.

The publication "Generation Z - potentials of the young generation for global disruption" has been published by the FERI Cognitive Finance Institute as "Cognitive Comment" and is available in German in the download area of this page.