Banking at the Dawn of the New Millennials
What happens when a major financial crisis hits just as you are starting to make a name for yourself in the corporate world, and the cause (or one of the major causes) can be traced to the big banking system? And when said system doesn’t begin to meet your needs as a technologically-savvy consumer?
Big banks should be very wary about the future, as the millennials—now the most dominant sector in the workforce and one of the largest generations in history—do not trust their system and are much more likely to give their business to the new financial companies that base their services in a more technology-inclined area (i.e. FinTech).
FinTech is very aware of the potential in the millennial market and numerous companies are specifically targeting their marketing at this section of the population.
GoFundMe is one such example of a successful new startup. Launched in 2010, it is a new venue for fundraising and has raised over $2 billion just in the last year. Described as some as “online begging,” it is a system that allows users to set up a donation page to support an endless number of causes then easily share it via social media. The most successful fundraisers are those set up to offer support after an illness or disaster, but multiple others have set up pages to fund trips, cars, new products or charitable endeavors.
Still (relatively) young and just starting to get the hang of making money and paying bills, there is always the danger of the stress of work causing millennials to be late on bill payments. But don’t worry, as there’s an app for that. Mint (and its sub-company Mint Bills) is a system designed to clearly show Millennials how they can manage their finances. Clients have their bank accounts, bills and other financial information (investments, etc.) synced into one easy account then have the system analyze their accounts to see if improvements can be made at any point. Mint Bills sends reminders to ensure bills are paid in time and creates an easy link-up so those bills can be paid quickly, reducing late fees and also offers an option of automatic withdrawal, so the system pays the bills for you before they are due. Then, bill statements can be kept within the app, allowing clients to review their payment history at a later point.
When entering the investment field, this generation will be very wary of the major players of yesteryear, having been a large part of the Occupy Wall Street movement. Luckily, the ultimate hero is coming to their rescue. Robinhood is a new type of investment player that proclaims its goal “is to democratize access to the financial markets.” The founders, Vladimir Tenev and Baiju Bhatt, were compelled to create the company once they discovered that trading firms charge investors for each trade, even though it costs them nothing to do the transaction. By offering free trading and easy mobile access, Robinhood Investments is the perfect player for people wary of the Too Big To Fail companies.
As the millennial base gains a stronger hold on the market and their income steadily increases, the value of FinTech companies will undoubtedly rise. This is a generation that has grown up on computers and wants the ease that comes with the new technology. Any company that chooses to adhere to old-school values and technologies will be unable to entice the business of this age group, which will be disastrous as the older generations leave the workforce. Watch for it, as the future really is FinTech.
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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech. We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.