Gen Y—84 million strong, dwarfing 10 million Baby Boomers. By 2025, Millennials will hold 75% of the global workforce. FinTech service companies drool over millennial financial marketing possibilities.
Born between 1982-2000, these digital natives never lived without the Internet. They expect instant information and entertainment. Millennials desire personalized financial services, driving FinTechs and traditional financial firms to innovate.
The Millennial Disruption Index, a three-year study that surveyed over 10,000 Americans at 73 companies in 15 industries, concluded that millennials expect more from financial companies. For example, the findings show that one in three Millennials would switch banks in the next 90 days; ten thousand + respondents think all banks are alike.
Even more astounding, Goldman Sach’s reported that 33% of Millennials believe they won’t need a bank in five years.
Omidyar Network, an investment firm, jumped on this trend. In 2014, 12 billion dollars was invested in financial technology. According to a report from Accenture, investment in the FinTech space will grow.
Millennial Financial Marketing Spend Rising for New Services
Many companies have successfully addressed online shopping processing, student debt needs, and mobile money services for unbanked adults.
Other examples include:
- Wonga: small consumer loans eliminating costly payday loans in Europe, Canada, and South Africa
- Lenddo: financial services to emerging middle classes using social media behavior to determine creditworthiness
- MatchMove: virtual payment cards without a credit check or a minimum income requirement
Relationship-Building Key to Winning Market Share
FinTech and banks have launched targeted word-of-mouth social media campaigns that create clarity, trust, confidence and engagement, a requirement for today’s socially conscious Gen-Y’ers. Millennials saw their parents struggle with finances during the dot-com boom/bust and after the housing market crash. No more.
The Pew Research Center reports, “Among Millennials, there is a broad agreement across major demographic subgroups that today’s young adults face greater economic challenges than their parents’ generation faced when they were starting out.”
Millennials now demand a different relationship with financial institutions. They expect faster, more personalized products and services.
If dissatisfied, Gen-Y’ers will tweet or post to social media. The word spreads quickly.
Millennials are Socially Engaged
89% of Millennials more likely will buy from a company with a social or environmental mission, according to data from Cone Communications.
Take the successful B-Corp, Tom’s, a company valued at 625 million dollars whose remarkable growth came from the idea of giving back. Millennials get engaged when their feel they’re making a difference.
Hope for the Future
Despite financial uncertainty, Millennials believe in their financial and job futures. They inspire FinTech startups and banks to offer excellent products and services. They also demand honest, convincing Millennial financial marketing.
Moving forward, Millennials point the way to improved business and commerce.
If you’re a millennial, you’ll want to learn more about the future of financial technology. Discover your future by clicking the image below: