FinTech Update: 5 Financial Apps To Know Next

Millennial research, Millennial insight, Millennial marketing, Gen Z research, Gen Z marketing, Gen Z insight, youth research, youth marketing

These five money apps are banking on Millennials for success…

Young consumers are driving the fintech revolution—according to study after study. Finance company SoFi reports almost 40% of 25-34-year-olds are using apps and digital tools for personal finance a few times a month or more. According to Bank of America’s 2016 Consumer Spending Snapshot, mobile wallet transactions are up 267% with 18-34-year-olds, and spending is up 235%. “Venmoing” has become a verb for a reason. The increasing popularity of the new payment method helps explain why credit card usage is on a decline with consumers between the age of 20-50. But they’re not just making spending and paying mobile, young consumers want their financial institutions to be mobile as well. Research by The Independent Community Bankers of America found that 74% of Millennials say mobile banking is very important to them, and 40% say they’d rather communicate with banks via email and websites. According to the 2016 FIS Consumer Banking PACE Index, 63% of Millennials are accessing their bank accounts on their mobile phones on a monthly basis—they’re also 30% less likely than Baby Boomers to visit a bank location or use a drive-thru, and are 17% more likely to pay a bill from their bank through a mobile device. Of course, investing is another financial space that’s been taken mobile for Millennials—while they may be notoriously risk-averse and financially insecure, they’re finding their own way of getting into the stock market, and mobile microinvesting (investing in “low-maintenance, index fund-based allocation strategies with small, frequent contributions”) has been a fairly safe strategy many young investors are trying out. Startups like Acorns—which we called out back in 2014—and Robinhood have created apps to help young consumers…

 
 

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Quote of the Day: “I don't drink on a typical night, but my choice when I do have a drink is often red wine.”

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13 Reasons Why, the Netflix series about a teen girl’s suicide, has some mental health professionals worried. While some applaud the show for increasing awareness about teen suicide, others fear the series could act as suicide contagion, increasing the risk of an individual engaging in copycat behavior. School districts across the U.S. are sending letters to parents to discuss the show and red flags to watch for in teens’ behavior, while counsellors are having conversations with students and patients. The National Association of School Psychologists has recommended that at-risk youth shouldn’t watch the series, and cautions adults to help teens differentiate “between a TV drama and real life.” (CNN)

U.K. Millennials consider themselves ‘grown up’ at age 27, according to a recent survey by Nationwide Current Accounts. With shifting paradigms surrounding adulthood, Millennials are defining maturity differently, and over half surveyed feel like entrance to adulthood depends on particular milestones rather than age. One in five believe they’re mature when they have children and another one in five when they move out of their parent’s home. Interestingly, Ypulse’s Adulting trend found that paying their own bills is the top sign of adulthood for Millennials in the U.S. (Telegraph)

Millennial shoppers are re-defining retail by purchasing on mobile, returning at higher rates, and ‘showrooming’—selecting clothes in-store then purchasing online—as a part of their “normal” purchasing process.  According to Criteo, as more clothing is purchased online, retailers can expect larger cart sizes at checkout, and return rates as high as 30-50%—which could create an opportunity to get young shoppers back into stores. Successful retailers are ““moving seamlessly between” online and off by covering return shipping costs or allowing in-store returns, innovating their online experiences, and keeping a high volume of product available in both spaces. (MediaPost)

Mexican wine country is becoming a top travel destination for Millennials. Cheaper, artsier, and arguably more authentic than Napa or Sonoma, Valle de Guadelupe is quickly accruing acclaim with twenty and thirtysomethings, who Ypulse has found love their wine. The small strip of vineyards and restaurants is shifting to suit their needs with food trucks, modern art, and even Uber for wine tours, when just a decade ago, the area didn’t even have the necessary roads to facilitate tourism. One winery owner observes, “What used to happen in this part of the world was that no one had anything to do and now everyone has appointments every hour.” (NYTimes)

The restaurant industry currently employs one third of all working teenagers, thanks to a recent uptick in teen employment. According to the Bureau of Labor Statistics, teens made up 35% of all restaurant workers in 2016, the highest percentage since 2009. Teen participation in the restaurant industry was above 50% until the Great Recession when it started a steep downward trend, causing staffing challenges across the industry. But it’s too early to know if the recent boost in employment signals a new trend or is just “a temporary blip.” (National Restaurant Association)

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