Watch Out Banks—Millennials Would Trust These Brands with Their Money

Young consumers don’t trust banks, and these are the brands they say they would trust with their finances instead…

Traditional banking is struggling with young consumers. The 2016 Millennial Disruption Index revealed that leading banks JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are among the top ten least-loved brands by Millennials, and our personal finance survey found that 37% of 18-36-year-olds say they don’t trust banks. The generation’s predilection for digital financial solutions has made “Venmo” a verb, and they aren’t just using peer-to-peer payment apps for bar tabs. CNBC reports that rent, utilities, and vacation expenses like plane tickets are being charged via fintech services like Venmo as well. Venmo has also invaded online shopping, allowing users to pay with their account anywhere that already takes PayPal—like Lululemon and Home Depot. They’ve also introduced a debit card, inching them ever-closer to banking services. Of course, in the wake of this digital financial invasion, those traditional banks have banded together to introduce their own peer-to-peer competitor, Zelle—but fintech startups might not be the only competition they have to worry about.

That same Millennial Disruption Index found that 73% of Millennials would prefer to handle their financial needs through Google, Amazon, Apple, PayPal, or Square. This year, the Wall Street Journal reported that Amazon might offer “a checking account-like product” that would appeal to young consumers and those who don’t have bank accounts. They have reason to believe consumers would be interested: Thirty-eight percent of Amazon customers told LendEDU that they would trust the online retail giant with their finances as much as they would a traditional bank.

But beyond Amazon customers, would all young…

 
 

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The Newsfeed

Quote of the Day:  Millennials have grown up in a world where consuming wine outdoors—or any location outside of the traditional table—is more acceptable than generations past.”—Kate McManus, VP of Marketing, Delicato Family Wines (Wine Spectator)

Young consumers are “killing the shopping spree.” Whether they’re signing up for the growing number of clothing subscription services (Rent the Runway, Le Tote, Urban Outfitters, etc.), shopping second-hand, or just culling their closets—young shoppers are quitting fast fashion in droves. Some are inspired by Marie Kondo’s joy-sparking brand of minimalism, while others want to help the environment—and still others are just seeking a wide range of things to wear at a lower price. (Vice)

Airbnb is launching “adventures” for experience-seeking young travelers. The site that started with accommodations and moved into one-off “experiences” (like dinner parties) now offers multi-day excursions, complete with guides, gear, meals, and accommodations. The platform already features over 200 trips in 40 countries, including a tiger-tracking expedition in Kenya and a trek through the canyons of Oman. (Fast Company)

Tyson Foods is taking on the fake meat market with plant-based nuggets. The pea protein nuggets are the first in a line of “Raised & Rooted” products from Tyson Foods. The brand's CEO explains they’re catering to the “growing number of people open to flexible diets that include both meat and plant-based protein”—aka young flexitarians, not full-time vegans. But can a company known for its meat sell the idea that “this [trend] is about ‘and’—not ‘or’”? (The Verge)

Snapchatters can shop Levi’s new Pride Month jacket via selfie filter. The Shoppable feature is first enabled by scanning a QR code found at select stores or by getting a special Snapcode from a friend. Then, users can try on the special-edition trucker jacket via augmented reality, customizing it with one of two washes and a selection of six pins and patches. Once they complete the look, users can purchase the Pride Month Jacket—without ever leaving the app. (SJ)

Amazon’s new Echo Dot Kids Edition revamps the original. The new smart speakertakes many cues from the adult version’s second generation (it’s louder and rounder) but adds special features just for kids that go beyond a rainbow-striped color scheme. The device will come with a year of FreeTime Unlimited, a subscription service that includes popular Alexa skills like Pinkfong’s Baby Shark Adventures, as well as an enhanced parental control suite to address growing privacy concerns. (VarietyCNET)

Quote of the Day: “Young people still have an incredible interest in the Olympic Games…But the way they are consuming the Olympic Games—the type of content they are watching and the ways and the platforms on which they are watching—are fundamentally changing.”—Kit McConnell, Sports Director, International Olympic Committee (Bloomberg)

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