Millennials are the largest age group in the United States currently, accounting for 80 million people in the United States alone. As with social and political norms, Millennials are bucking traditional banking practices and pushing financial institutions to integrate technology into their business practices even further. While their parents and grandparents would prefer to visit branches in person and balance their checkbook with a pencil and paper, Millennials are checking their accounts via a bank’s mobile site and keeping track of their spending through apps. With this in mind, let’s take a look at five ways Millennials are shaking up financial technology.
1. Banking on the Go: Mobile
In fact, 18% of Millennials only use their mobile device. While financial websites have bolstered their online presence, making it possible to perform complex trades, open accounts and much more, mobile apps and websites will need to eventually have these capabilities as well.
According to a recent study by competitive intelligence research firm Corporate Insight, Millennials and mobile devices go hand in hand, so financial services firms must make mobile innovation a priority if they want to win and retain Generation Y customers.
2. Banking “Moneysupermarkets”
Banking institutions are positioning themselves as a one-stop shop for all financial needs. This includes checking balances, paying other people, applying for a loan or mortgage, and investing in their future.
Millennials are looking to everything they need to be in one place.
3. The Use of Robo-Advisors
Many Millennials are also unlikely to invest their money the way other generations have. Take, for example, the robo-advisor trend. Instead of using a financial advisor alone, robo-advisors take into account algorithms and statistical trends, which will help them invest, or will invest their money for them to earn the best yield possible.
With low minimum investments, low fees, and automatic rebalancing of investments, robo-advisors are offering Millennials a new way to build a financial portfolio.
4. Using Gamification for Finances
The generation that grew up with Nintendo and PlayStation is quickly finding out that their finances can also be fun and games. Through gamification, Millennials have been able to boost their credit score or increase the amount of money they have in savings. If financial institutions can do to saving and investing in their future what a FitBit has done for running and staying in shape, financial institutions will have a great new way to attract customers.
5. Wearable Tech
Wearables are already changing the way Millennials interact with technology, and they will soon change how they interact with their money. Mobile wallets and “tap to pay “are becoming far more popular and accepted ways of performing transactions.
More financial institutions are rolling out apps for smartwatches and thinking about how wearable technology can impact millennials saving, spending and investing habits.
So what would be next for millennials and the financial technology world? Have an idea you’d like to bring to market that could change the fintech world? Contact Ciklum! We’d be happy to help you make your idea a reality!