FinTech has been making the headlines for all the right reasons. In fact, if you are using a smartphone, you are probably using some FinTech apps. Numerous startups have been investing in this industry to come up with novel products. But, the target obviously is the tech-savvy people. More importantly, it has become the choice of millennials, who are the spenders currently. These are the people who handle different technologies in their daily lives on an everyday basis. So, it makes sense that it will appeal to them, right?
But, there’s more to this than meets the eye. There are in fact a lot of reasons why FinTech has become the choice of millennials. Here are a few reasons why it has become so popular among this generation.
Just because it is a piece of tech, does not mean it needs to be complex. Simplicity is the key that lies at the heart of FinTech. The more difficult it will be the lesser audience it will have. So, it is no wonder that there are so many adopters and the primary ones are the millennials.
One thing that this generation likes about FinTech is that it not only provides a simple user experience but it also simplifies complex processes. It streamlines the difficult processes like applying for a loan and makes it accessible to everyone. The primary reason why FinTech is an obvious choice of millennials is that it focuses on the customer rather than the company.
#2: Clear Overview
Millennials like their data. This is the age of big data anyway! So, FinTech companies help people to have a clearer understanding of things. They have become so popular because these apps give a clear overview of all their financial activities. This is very important in this day and age when every single person out there has an infinite number of expenses. This helps them keep track of their finances and access specific information at any given point in time.
Smartphones and apps rule our world now. So, one thing that a good app needs is integration. More so when it comes to FinTech apps. You might be wondering why.
Well, in order to make mobile payments and transfers easy FinTech apps need to start thinking about integration. It is important that customers can avail their services via other apps when they need to make a payment. It should also allow them to keep track of purchases made on other apps so that it ultimately reflects on the views. So, millennials find this extremely convenient when transferring money or making purchases. It makes things easier for them and even lets them track everything.
#4: Value-Added Services
FinTech is not only limited to stand-alone apps. Almost all millennials have bank accounts. And, in order to access the bank account, most of them use their bank’s mobile app. The core function of such an app is to help save, transfer and borrow money. In order to attract customers, most banks have started tying up with FinTech companies to help provide value-added services to their apps. This can mean a wide variety of things. Some banks have taken this opportunity to let people track money in real-time. Some allow reducing forex charges. Others allow smooth payments of bills and other necessary services. In fact, the options are endless. But, this makes lives easier for a lot of people.
#5: Artificial Intelligence
Artificial intelligence or AI has been with us for a long time. It is not a distant possibility like we see in movies. In fact, many FinTech companies use AI to analyze their data and detect all sorts of changes. But, the best thing about this is that they have not limited the use of AI only to themselves. They have made it accessible to their users. So, now you can find out answers to complex questions like how much you can save or how much should you ideally save.
For millennials, this means a lot because they have so many expenses and need to keep track of their spending. AI helps users to understand their spending patterns and ensures your financial well-being.
FinTech is, after all, a revolution unlike any other. It is making a lot of things easier. It is helping people to access financial services that they would have never dreamt of. Loans for businesses and personal use are being granted without much hassle. It is changing how people use banks and at the heart of their audience lies this generation. So, now you can understand why FinTech is the choice of millennials.