“Millennials, and the generations that follow, are shaping technology. This generation has grown up with computing in the palm of their hands. They are more socially and globally connected through mobile Internet devices than any prior generation. And they don't question; they just learn.” - Brad D. Smith
Financial tech is not a new concept, it has been around for a while now. However, the technological advancements and increased demand for online financial services have completely changed the dynamics of this industry.
The Millennials (25-40 years old in 2021), in particular, are a major reason behind this shift. Here’s how their distinct behavior has completely revolutionized fintech software development.
Interesting facts:
- Millennials spend $600 billion annually in the US alone.
- They contribute to more than half of all online purchases.
- Millennials are more influenced by online marketing & reviews than any other generation.
Millennials’ Contribution to Fintech Software Development
They prefer the Digital Space over Brick-and-Mortar
Millennials were born with smart devices in their hand and believe in the notion, “Why go out when it can be done online?” They consider a physical trip to a bank to open an account to be too much of a hassle. They prefer doing that through a mobile app, from the comfort of their homes.
The convenience-hungry generation and its increasing demand for Fintech applications have paved the way for many new online-only banks. Higher interest rates & low to no fees are some of the major benefits of online banking and they can do that due to lower overhead costs. Big names from the banking sector like Barclays are also honing in on the benefits of fintech software development .
Millennials demand Exceptional service
“If banks cannot truly be customer intimate, they are doomed to be just dumb commodities, acting behind the scenes, like utilities.” - JP Nicols
This generation digs convenience but that doesn’t mean they overlook the quality. According to a survey, Millennials reject online banking services if they are faulty or take ages to process. They are likely to switch to a better & faster user experience.
The competition has forced key players in the banking sector to invest heavily in on-demand mobile app development and providing great UI/UX to the clientele is a norm now.
Millennials get Distracted Easily
There’s a lot of competition in the fintech world. A plethora of new apps is available on Apple App Store & Google Play Store as a result of Improvements in fintech software development. This means customers have a variety of online banking apps & services to choose from. So how do you retain a customer amid the distraction? “Engagement” is the keyword here.
Businesses’ marketing efforts should go beyond the initial download. Talk to your users. Keep reminding users of new offers or features via Virtual Assistants or ChatBots. This will translate into customer loyalty and a long-term relationship.
Benefits of Fintech for Millennials
Everything is Instant
Sending or receiving money or withdrawing cash isn’t a worry anymore. Millennials can now do that an instant, with a finger tap. They can even score discounts and other rewards for performing online transactions.
Security
Pick-pocketers are out of business. Advancements in fintech software development have allowed Millennials to go cashless, who prefer owning a digital wallet over a real one. The fear of someone stealing your physical currency is almost non-existent.
Convenience
This perhaps is one of the biggest benefits of Fintech. This tech-savvy generation wants everything done from the palm of their hands and this tech allows them to do exactly that.
Be it applying for a loan, sending & receiving money, or managing personal finances, everything can now be done through a smartphone.
The constant increase in demand for online financial services by Millennials is shaping the future of financial technology. To be successful, companies need to understand Millennials’ behavior and design policies around them. As long as they’re doing so, the future of Fintech looks bright.
“The more a business is able to develop and articulate a core purpose and engage with millennials, who equate purpose with business excellence, the greater chances for long-term success.” - Punit Renjen