Around 78% of British Gen Z and millennials are fed up with the low-interest rates of high-street banks and have begun looking for alternative ways to invest, research by fintech app Plum found.
A third of young people are considering setting up a stocks and shares ISA to grow money long term as it offers a tax break and allows for better returns than the 3.6% per year average offered by a typical bank account.
Victor Trokoudes, chief executive officer at Plum said: “Despite the Bank of England increasing the base rate substantially, high street banks have been painfully slow to bring much more interest to their customers.
“They will lose out in the long run as younger customers are tech savvy and have no qualms about switching to a provider that will offer a better return.”
Priorities have already begun switching for younger generations, the survey identified, with investing in the stock market now the third most important reason for youths to save money – behind only holidays and emergency funds.
Two-thirds of respondents said they would switch to new digital banks if they were offered better interest rates, while a quarter are now considering buying company shares as a better route to save.
With an abundance of financial advice available online, younger people are feeling more confident in finding new sources to help manage wealth, Plum added.
One in five under 26-year-olds are exploring investments in cryptocurrencies and valuable metals – whilst 17% have investigated the possibility of matched betting to get a good return.
Despite a tough economic outlook, the youth remain confident about their investment avenues as close to half believe they could become an ISA millionaire one day, the research concluded.