Social media marketing (SMM) has become a crucial tool in various industries, including financial services. With the global number of users increasing from 4.72 billion in January 2023 to 5.04 billion in January 2024, businesses are recognizing the importance of maintaining an active presence on social media to engage with their audience and promote their products or services. This trend is driven by the increasing number of people turning to social media for recommendations, reviews, and updates from their favorite brands. In the financial services industry, SMM positively impacts customers’ perceptions of Gen-Z's services, increases brand awareness, and drives customer engagement. However, challenges such as maintaining authenticity and managing customer expectations exist. The study highlights the importance of SMM for financial services to Gen-Z customers and provides insights into how they can leverage social media to enhance customer experiences and drive business outcomes. Gen-Z values educational materials and expert insights on social media, with 74.1% of the variance in customer engagement explained by content types. A significant positive correlation exists between financial literacy and social media usage frequency, highlighting the role of education in enhancing engagement. Structural Equation Modelling (SEM) highlights social media's influence on investment behavior (IB) and risk attitude (RA), accounting for 46.3% and 56.5% of the variance, respectively. These findings reveal the interplay between knowledge, trust, and behavioral intentions, with financial literacy and social media emerging as critical drivers of Gen-Z engagement and informed decision-making. Financial service providers should focus on educational content, expert opinions, and strategic use of social media to promote financial literacy, enhance trust, and foster inclusive participation within financial ecosystems.