Asset management industry targets Gen-Z

PARAGRAPH 1 --- What happened: JPMorgan Chase (JPM) is launching a new banking app, waiving fees, and allowing 17-year-olds to open accounts to attract Gen Z customers. Meanwhile, Capital Group's CEO, Mike Gitlin, advised Gen Z investors to focus on long-term investing instead of 'hobby' trading, as the asset management industry courts this generation. Ambrico Ranginui, a 16-year-old, exemplifies Gen Z's investing boom, having started with cryptocurrencies at age 12.

PARAGRAPH 2 --- Market impact: Traditional banks like JPM are adapting fintech strategies to capture Gen Z, a 30 million-strong market. Asset managers are also targeting this generation, driving a shift in investment behavior towards long-term strategies. This narrative impacts the banking and asset management sectors, with established players like JPM and Capital Group adjusting their offerings to cater to Gen Z's unique preferences.

PARAGRAPH 3 --- What to watch next: In Q2 2023, monitor JPM's earnings (April 14) for signs of Gen Z customer acquisition success. Additionally, track Gen Z's investment trends and their impact on asset management flows. Lastly, watch for regulatory developments (e.g., SEC's review of fractional shares) that could further shape Gen Z's investing landscape.