Reasons Why Millennials Love Fintech — Money for the people, by the people | Punk Money
On the whole millennials tend to be bold, opinionated and open minded which undoubtedly ruffles the feathers of the generations that have gone before. This ‘disrupter’ mentality is a match made in heaven for the world of financial technology. Like their most loyal advocates, Fintech is all about shaking up the system, innovation and a ‘lets have it all’ kind of attitude.
Whereas Generation X and the baby boomers were big on the ‘like it or lump it’ type of mentality, both fintech start-ups and millennials are bold enough to push the envelope. They’re asking ‘why are we putting up with outdated services?’ ‘why can’t we live a life that we love?’, travel the world and not have to follow the crowd. Millennials and fintech share a love of freedom, non-conformity and hope. They’re about challenging old hat social norms and creating positive change in the world.
Millennials are the generation born between 1981 and 2000, who have grown up with the tech industry. For some that meant using pre-google encarta to research homework projects, or dial up internet with Connie from AOL. Those born in the late nineties will remember their first 2G mobile phone and the first USB. The thing with the millennial generation is that they’ve witnessed first hand what is possible when it comes to technology and innovation. They know what it means to live without the sophisticated technology we have today and their personal experiences have allowed them to see how it has positively impacted their lives. By 2025, millennials will make up 75% of the workforce and represent the most powerful drivers in our economy today.
Millennials Don’t Want to Feel Tied Down
In contrast to the beliefs of their predecessors, millennials are all about living as freely as possible. For many, they’ve witnessed their parents be weighed down by mortgage repayments and a ‘job for life’ attitude and they’re doing everything possible to avoid subscribing to the same life. This in turn means that for many millennials the most long-term commitment they have is with their student loan. Freedom is a priority when it comes to their job, relationships, utilities, and banking is no exception. Millennials are always on the look-out for the next innovation which gives them even more independence.
For Millennials Community is Essential
For millennials peer-to-peer and collaborative networks are a massive plus point. It’s not enough to simply sign up for a product or service, they want to feel as though they are part of a positive movement. Community and sharing is a vital aspect of the digital experience for the average millennial. Studies show that they are more generous and less ownership focused than previous generations. Fintech companies on the whole are purpose-led meaning that their services are driven by a clear social objective. Fintech companies are all about creating solutions to issues within society that have long been in need of addressing. Millennials love the fact that fintech companies are inspired by progressive attitudes which align with their own. Like Punk Money, many fintech founders and teams are millennials themselves meaning that the services created connect with users in a very personal way.
Memories of the Financial Crisis are Haunting
The global financial crisis and its impact left lasting psychological scars on millennials, reminiscent of those imprinted on their great grandparents after the great depression. Not only did the financial crash have a very negative impact on the job market, it also highlighted the failures of many large banks and financial institutions. As a consequence, when it comes to banking and insurance millennials are far more hesitant than previous generations to put their trust in conventional services. Fintech companies cater to this need, providing innovative and progressive alternatives to these long serving institutions. 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.
Fintech Supports the Millennial Mind-Set
When it comes to how millennials like to operate face to face communications are far from top of the list. This generation are all about cutting out the small talk (literally) and getting the job done. Millennials have been criticised for being ‘antisocial’ due to their preference to text over talk, shop online over an in-person experience. Rather than being rude, it seems more to be the fact that millennials view personal space and autonomy as a big priority. They’re conscious of maximising their time and simply put often don’t have time to have long conversations as their lives are on the whole very busy and demanding. When it comes to managing their money, priorities are no different. Millennials are always on the look-out for the next fintech app that gives them even more efficiency and ease.
It’s easy to see why millenials and fintech are a match made in heaven. Both share a love of pushing boundaries and challenging the status quo. Punk Money is driven by our purpose-led mission to:
1. Decentralise the banking model and put the people back at the heart of the financial system.
2. Revolutionise wealth distribution to give instant access to cash to millions.
3. Remove the fat cats in the middle and put the power back in the hands of the people
With over 50% of the U.K population currently experiencing financial hardship we knew we had to step up and create a service and community that would radically change the narrative. Punk Money is a solutions focused service that puts you at the centre. We are all about creating positive and lasting change in the world of finance and beyond and we are so happy to have you here. You’ve placed your trust in us and we won’t let you down.
Until next time, thanks for reading.
