Why Millennials Love FinTech (And Why This Matters)

 

Millennials: The generation born between 1981 and 2000, grown in a technologically-enhanced society and just coming into the stage in which they are the true drivers of the economy. (By 2025, millennials will be 75% of the workforce.) Any industry that wants to cater to this 100 million person market (and that’s just North America) that will be worth $7 trillion by 2020 needs to know how to properly entice them.

When it comes to banking, this is the generation that will fully embrace FinTech. The leading bank names all appear on the list of their least loved brands and 70% would choose to get financial services from one of the major technology companies (Amazon, Apple, Google, Paypal, etc.) over one of the national banks. This is very good news for the FinTech crowd.

As this is the generation that grew up in the digital age, it’s not surprising to learn how vital mobile apps are becoming in the modern financial age. Modern financial institutions need to fully embrace how 24/7 the world has become and offer the technology—both through mobile apps and internet banking—that allows users full control over their financial access. This is one of the areas in which FinTech is excelling while the retail banks lag, which explains why the millennials seem poised to abandon typical big bankers in favor of FinTech.

Winning over a millennial consumer is important, as these customers are brand loyal and nearly half (43.5%) say they spread the good word on social media—meaning their business can help bring in more customers.  One way to win them over is to have an active presence on social media yourself, bringing (potential) customers in the know via posts and videos illustrating the benefits of your company. Coinify, for example, uses its Facebook group to advertise services, promote events and share articles detailing the importance of bitcoin and the like. The simple act of interacting with followers on your page can do more than an advertising blitz when it comes to maintaining a loyal customer base, especially when you consider the diminishing returns that come with commercials.

The age of FinTech is upon us. As the millennials age and gain more control and as the current stranglehold of the big banks weakens FinTech will be the system people use to manage their money: You can bank on it.