Mastercard: Asia's Gen Alpha Learning Finance Early
Asia’s Generation Alpha is getting an early start to finance with knowledge that is new to many of their parents, according to a Mastercard report.
Nearly all (94 percent) children from Gen Alpha — the digital-first generation born 2010 onwards – have access to a financial account, according to a Mastercard report. Many also hold digital wallets (58 percent), investment accounts (49 percent) and credit cards (48 percent).
The report notes that money management is being learned by children as young as seven years old.
Parents Attempt to Keep Pace
Parents are trying their best to keep up with Gen Alpha’s financial knowledge. Nearly half (47 percent) say their children have introduced them to digital financial tools they did not know about with 53 percent admitting that the new generation knows more than they do about payment methods. 63 percent believe their children are more financially savvy than they were at the same age with 60 percent unsure that their financial knowledge is applicable today.
Nonetheless, parents still wish to support their children with strong interest in educational content (67 percent), parental controls (57 percent), seamless account transfers (55 percent), real-world learning simulations (48 percent) and gamified experiences (43 percent).
Financial Institutions Need to Evolve
According to Sandeep Malhotra, executive vice president, core payments, Asia Pacific, Mastercard, banks and financial institutions that hope to win business from this new generation must create payment experiences that «match their vibe». This includes custom digital wallets, seamless in-app payments and secure tools.
«To truly connect with Gen Alpha – and their parents – the payments sector needs to speak their language,» said Malhotra. «These kids aren’t here to play – they’re here to slay, save, and spend smart. They’re low-key money bosses, tapping phones before they can tie shoes and turning budgeting apps into their playground. Cash? Not their go-to. Today, it’s all Tap & Go.»
The report’s findings are based on a study conducted by The Harris Poll on behalf of Mastercard with 19,302 consumers across five regions, including 9,131 consumers in Asia Pacific. Within Asia, the markets involved include Australia, China, India, Indonesia, Japan, Malaysia, Singapore, Thailand and Vietnam.
