A recent survey conducted by Coinbase (NASDAQ:COIN) has shed light on the profound dissatisfaction that pervades the United States’ financial system. According to the survey findings, a mere 9% of Americans express satisfaction with the nation’s financial infrastructure, with only 22% believing it to be superior to other countries.
The younger demographic, in particular, appears deeply disillusioned with the financial system, as noted in the Coinbase report. A mere 7% of respondents from this group claim that the financial system works well for people like them, and a significant 52% acknowledge that they either never or only occasionally use it.
Comparatively, fewer than one in five (17%) younger participants regard the US financial system as superior to those of other nations, in contrast to the 26% of those over the age of 40 who hold a similar opinion.
The research conducted by Coinbase delves into how young people interact with and access the financial system, where they perceive its shortcomings, and how they are proactively creating economic opportunities for themselves. Notably, over 100 million Millennials and Gen Z adults have grown up in a world replete with the internet, mobile phones, and applications.
When Millennials faced the setbacks of the 2008 financial crisis and the subsequent Great Recession, they popularized marketplace apps to transform their free time and unused possessions into additional income, giving rise to the global sharing economy. Gen Z, in turn, had to adapt during the COVID-19 pandemic, leading to a digital existence marked by online learning, socializing through gaming, and valuing digital assets.
These younger generations desire legacy financial institutions to adapt to their lifestyles, allowing them to manage and transfer their finances at the pace of the internet, irrespective of geographic boundaries. Only a mere 5% of Gen Z and Millennials perceive the financial system as “speedy,” and just 11% consider it “innovative.” In contrast, they are more inclined to describe it as “political” and “expensive.” Among all generations, Millennials are the most likely to deem the system as “outdated” (29%), while Gen Z is more inclined to label it as “confusing” (28%) and “exclusionary” (29%).
In light of the perceived shortcomings of the current system, young people are taking matters into their own hands and creating alternative paths to financial prosperity. They are more inclined than older generations to seek multiple income sources (45%) and engage in side gigs (32%). The drive to work relentlessly to achieve their goals is most pronounced among Millennials (48%). A striking 77% of Gen Z aspire to forge their own unique life paths rather than adhering to conventional markers like college education and homeownership.
Furthermore, approximately 38% believe that crypto and blockchain technologies have the potential to create economic opportunities beyond the scope of traditional finance, in contrast to 26% of older demographics. Notably, over one-third (31%) of young people already own cryptocurrencies, compared to 12% of their older counterparts.
The younger generation demonstrates a greater interest in cryptocurrencies, citing their appeal as a global currency that can be accessed and sent across the world (16%, as opposed to 10% among older respondents). A substantial 51% of young participants express a likelihood to support crypto-friendly candidates in the upcoming 2024 elections, underscoring the growing influence of digital currencies on political preferences.
