The next-gen personal finance players attracting Aussie Gen Z and Millennials
The world of personal finance can feel daunting, but a new wave of providers are putting it within reach for savvy Gen Z spenders (and their millennial counterparts, who still appreciate simplicity).
While Australia’s big 4 banks might hold the business of most the population, younger Aussies are just some of the many early adopters looking to try their hands with smaller providers. Often these challenger brands can offer sharp savings too, with fewer overhead costs.
There’s no fooling these smart savers, either. Spending so much time online and on social media has left a younger audience with x-ray vision for scams and an acute awareness of old-fashioned marketing.
Instead, brands like Up and Westpac offer intuitive and exciting app experiences that have seen them winning 2023 Mozo Experts Choice Banking App Awards^, easily integrated into an online lifestyle. Meanwhile, car insurance disruptor ROLLiN’ has waved goodbye to expensive excesses for young drivers and laid out their policies in plain English.
While the housing market might be riding high, prospective buyers can goal-set with Up home loans or the ubank Save Account. Even refinancing is within the reach of younger borrowers, with Unloan offering below market average rates, a sleek design and an attractive loyalty discount.
As the younger demographic grows their hold on the financial market, we can expect to see more of these ground-breaking brands paving the way.
The Gen Z Product Hit List
Up – Variable Home Loan
- 5.90% p.a. variable rate (5.90% p.a. comparison rate*)
- No application, monthly, annual, redraw, or discharge fees
- Free offset accounts available
With a competitive variable interest rate of 5.90% p.a. (5.90% p.a. comparison rate*) and an easy-to understand website, Up offers users a low-fee home loan accessed through their 2023 Mozo Experts Choice Award-winning app^. This user-friendly home loan only needs a 10% deposit and offers free unlimited repayments with a free redraw facility, and up to 50 offset accounts (T&Cs apply). They’ll also cover the first $400 of your property valuation. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank.
Unloan – Variable Home Loan
- 5.74% p.a. variable rate (5.65% p.a. comparison rate*)
- Zero upfront or ongoing fees
- Refinancers only
Unloan is a sleek digital home loan offering built by CommBank which won Best New Home Loan in the 2023 Mozo Experts Choice Awards^. This could be an option for younger homeowners looking to refinance, as owner-occupier refinancers receive a low 5.74% p.a. variable rate (5.65% p.a. comparison rate*) along with a loyalty discount that shaves 1 basis point off your interest every year for up to 30 years (t&cs apply). Loan features include free extra repayments and redraw, and there are no pesky fees to pay (apart from any mandatory government fees). Available for refinance loans of up to $10M with a minimum 20% deposit.
ubank – Save Account
- 5.10% p.a. maximum interest rate
- No monthly fee
- Comes with a linked spending account
ubank’s Save Account rewards savers with an impressive 5.10% p.a. interest rate in return for setting up a linked Spend account and simply depositing $200 each month into either their Spend or Save account. While this account is only accessible through the iOS or Android app, the user-friendly interface and lack of restrictive conditions on interest makes ubank an appealing option for all ages. There are no monthly fees and you can open up to ten Save Accounts for different savings goals and earn bonus interest on them all, provided you meet the conditions.
Up Saver Account
- Earn up to 4.35% p.a.
- Auto top-up, round up, split payment and lock features
- 2023 Mozo Experts Choice Award Winning App^
Up Saver ditches the need for separate savings accounts. Set up multiple Savers based on your goals and as long as you make 5 purchases a month from your regular Up translation account, you’ll earn a competitive 4.35% p.a. across all Savers (conditions apply). If not, the interest rate drops to 0.00%. Your money is 100% managed via the award-winning Up App which is feature-packed with innovative savings tools from auto-top ups, round-up features and payment splitting that will split a percentage of your pay into each of your Savers each payday. There is even a locked option that will block access to the account for a 3 hour period for added impulse control if you enable it. There’s no monthly fees and bonus interest is only available on balances up to $1M, which for most shouldn’t be of concern.
ANZ Plus Save Account
- Earn 4.90% interest on balances up to $250,000
- No monthly deposit, minimum transaction or age restrictions
- Mozo Experts Choice Award Winner 2023^
The ANZ Plus Saver account is only available through the ANZ Plus App but if you’re after a savings account without pesky conditions this account has one of the highest non-conditional savings rates in the market at 4.90%. There are no monthly deposit, minimum transaction or age restrictions to earn the high rate, but your balance must not exceed $250K. You will need to also set up an ANZ Plus transaction account but there are no account fees attached so this shouldn’t be a disincentive. The app also comes with smart tools to help you spend less and save more.
ROLLiN’ – Comprehensive Car Insurance*
- Pay for insurance month-to-month with no cancellation fees
- No high excess for young drivers
- Mozo Experts Choice Exceptional Value Car Insurance Award Winner 2023^
ROLLiN', backed by one of Australia’s biggest insurance companies IAG, has been shaking up the car insurance field with a policy that says goodbye to any lock-ins or cancellation fees. You'll enjoy 24/7 online claims support and a lifetime guarantee on authorised repairs, plus if you accidentally damage your windscreen, sunroof or window glass, ROLLiN' will fix them for free! Terms and conditions apply to all benefits. ROLLiN’ also doesn't automatically charge a higher excess for young drivers, which many insurance providers can do. Just don’t let your mates drive unlisted, as unlisted drivers will run you a $3,000 excess.
Freely international travel insurance*
- Customisable, flexible coverage through the Freely app
- 10% off with a Mozo exclusive discount
- Unlimited medical and hospital cover
- 2024 Mozo Experts Choice Award^ - Exceptional Value Essential Travel Insurance
Freely is a new travel insurance and safety app that gives you ultimate flexibility. Its base policy includes unlimited medical and hospital cover (including Covid) and $1 million personal liability and from there you can customise your policy features to suit your trip such as adding additional luggage or cancellation cover. There’s even the option, once you’ve left on your trip, to add on daily boosts if you decide to do something at the last minute like skiing or going on a cruise. Plus, apply now with the Code MOZO10 and you’ll get 10% off your policy. T&Cs apply.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
*** Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Home Loan Awards
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