Australia’s Millennials—those born between 1981 and 1996—now make up the largest working-age cohort in the country. As of 2025, they’re not just consumers of financial products; they’re trendsetters, digital natives, and policy influencers. Their approach to money is redefining everything from property markets to superannuation, and their choices are sending ripples through the entire financial sector.
Digital-First Banking and the Rise of Fintech
Millennials have grown up alongside the internet, making them the most digitally savvy generation yet. In 2025, their embrace of technology has pushed Australia’s banking sector to new heights of innovation. Here’s how:
- Neobanks and Digital Wallets: The continued growth of neobanks like Up, 86 400, and Volt has forced the Big Four to ramp up digital offerings. Over 70% of Millennials now use digital wallets as their primary payment method, according to the latest RBA data.
- Open Banking: With expanded open banking regulations in 2025, Millennials are leveraging data-sharing to access tailored budgeting tools and competitive loan offers, breaking down the barriers to switching banks.
- Buy Now, Pay Later Evolution: Although the sector faces tighter regulation in 2025, Millennials still favour flexible payment options, with platforms like Afterpay and Zip evolving to offer budgeting features and responsible spending tools.
Investing: From Shares to Sustainability
Millennials are investing earlier—and differently—than previous generations. The 2025 ASX Investor Study highlights that nearly 60% of new investors are under 40. What sets Millennial investors apart?
- Micro-Investing and ETFs: Platforms such as Raiz and Spaceship make it easy for Millennials to start investing with just spare change, democratising access to the share market.
- ESG and Impact Investing: Ethical and sustainable investing is a priority. Over 70% of Millennial investors consider environmental, social, and governance (ESG) factors when building their portfolios, influencing super funds to increase green asset allocations.
- Crypto and Alternative Assets: Despite regulatory uncertainty, Millennials remain the most active crypto investors, with over a third holding digital assets alongside traditional portfolios.
Housing, Debt, and Financial Challenges
While Millennials are often portrayed as a generation priced out of the property market, the reality in 2025 is more nuanced. Recent ABS data shows Millennial home ownership rates are rising modestly, driven by government incentives and new lending criteria.
- First Home Buyer Schemes: Expanded government schemes like the First Home Guarantee and the Shared Equity Initiative have helped Millennials overcome deposit hurdles, with over 25,000 Millennial households accessing assistance in 2024–25.
- HECS-HELP and Student Debt: Indexation changes and rising education costs remain a burden, with the average Millennial carrying over $25,000 in student loans. This debt influences borrowing capacity and delays major financial milestones.
- Cost of Living Pressures: Inflation and housing affordability remain top concerns. As a result, Millennials are more likely to rent long-term, co-buy with friends, or invest in fractional property platforms to get a foot on the ladder.
Superannuation and the Future of Work
The gig economy and flexible work arrangements are reshaping how Millennials approach retirement savings. Super funds are responding with more flexible products and digital engagement tools tailored to this cohort.
- Gig Workers and Super: 2025 policy changes have expanded superannuation coverage for gig and casual workers, addressing gaps in retirement savings for Millennials with non-traditional careers.
- Digital Advice: Robo-advisers and app-based super management tools are making it easier for Millennials to consolidate accounts, choose investment options, and track progress towards retirement goals.
What’s Next for Millennials and Money?
Millennials’ influence on Australian finance is set to grow, with their digital-first mindset and demand for transparency shaping products and policy. As they enter their peak earning years, expect continued disruption—and innovation—across banking, investment, and property.
