Gen Alpha’s high financial literacy challenges banking norms

Nearly all APAC children now have financial accounts.

Gen Alpha in Asia-Pacific is entering finance early, with 94% holding a financial account, Mastercard reports. Many also use digital wallets, investment accounts, and credit cards — and nearly half have taught their parents about new financial tools.

Ben Gilbey, Asia Pacific Senior Vice President for Digital Consumer Solutions at Mastercard, says Gen Alpha’s rapid adoption of finance tools starts at home.

“They’re looking at what their parents are doing. They’re copying and mimicking what their parents are doing. They watch their parents pay with phones, pay with QR codes,” Gilbey explains. “They see money not through a piggy bank or through notes, but through a screen.”

In markets like Singapore, children can use tools such as watches and cards to make contactless payments, with parents able to monitor and control spending. Social media, delivering bite-sized financial knowledge in 10- to 20-second bursts, further accelerates their learning.

“They’re actively involved in everything from saving to payments to investing,” Gilbey adds.

For Ashutosh Awasthi, Director at Kadence International Singapore, the driver is not just parental influence — it’s also the merging of gaming and financial concepts.

“The biggest driver of early adoption is the blurring of the line between virtual reality and the real world, and gaming technology has a significant role in this,” Awasthi says. Earning coins, trading items, and managing virtual currencies in games become early, intuitive lessons in budgeting, saving, and value exchange.

“When a Gen Alpha comes across real financial tools, it doesn’t feel scary or confusing. It feels like just another next level of game they’ve already been playing,” he notes.

While early exposure builds confidence, it also opens new risks. Gilbey warns that financial literacy must come with guardrails.

“We need to be teaching kids how to protect themselves with age-appropriate tools… set limits on different asset types, spending thresholds, make sure they’re using age-appropriate platforms,” he says. He also points to AI’s role in flagging unusual spending patterns and online behavior.

Awasthi highlights behavioural risks. “Short attention spans and the constant need for instant gratification create a perfect storm… This impulsivity puts both their money and their trust in serious jeopardy,” he says.

The dominance of super apps — used by 70% of APAC consumers for payments, shopping, and more — is forcing banks to rethink their role.

“Payments need to be embedded within those experiences, rather than trying to bring the consumers somewhere else,” Gilbey says, noting that trust and security remain areas where banks can excel.

Awasthi sees partnership as the smarter path. “Super apps bring the community and banks bring credibility… Instead of reinventing the wheel, banks can plug in these ecosystems offering secure financial services where users already are,” he says.