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: “Retail should be a facilitator for experience, rather than just selling product.”—Sharmandean Reid, Founder, Wah Nails London (YPulse)

Millennials seeking portable booze are cracking open canned wine. Even though the category still only accounts for less than 1% of the Millennial-favorite alcoholic beverages’ market, Nielsen reports it spiked 69% last year and continues to gain ground. An exec at Delicato Family Wines explains, “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.” (Wine Spectator)

Summer camps are cropping up to teach kids how to become YouTubers. At I-D Tech Camps, Level Up, and Star Camps, kids can learn all about how to, as the latter puts it, “Become an Internet sensation.” They offer courses in how to create and post videos, from shooting clips to editing audio, and how to build their personal brand. But don’t worry, most are framing YouTubing as a hobby, not a career, and setting kids’ expectations accordingly. (WSJ)

A new bill could change the free-to-play profit model that’s made games like Fortnite top earners. Senators have proposed the official ban of “loot boxes,” or items that players can buy (and sometimes must buy) to win a video game, often gambling on what’s inside. Senator Ed Markey explains that “Inherently manipulative game features that take advantage of kids and turn play time into pay time should be out of bounds.” For some, this will eliminate a key revenue stream and open the door to review other in-game purchases.  (The Verge)

A social media overhaul upped Corn Nuts’ sales by 12%—with no paid support.The snack’s sales were stagnant before a new exec took over their Twitter, infusing it with the personable tone food brands have become known for (and sometimes notorious for). Since then, followers spiked from 650 to 21,000, and what they’re calling a “scrappy” strategy “absolutely translated to sales,” reporting that retail sales spiked 12% and Millennials’ repeat purchases rose the same percentage. (Marketing Dive)

The retail apocalypse continues, with 7,000 more stores closing their doors in 2019. CoStar Group estimates that the square footage of retail space closed has topped its own record each year since 2017, and this year they’re “predicting more of the same.” PayLess ShoeSource, Gymboree, Dressbarn, and Charlotte Russe lead the list of number stores planned to shutter this year, as retailers learn to scale down size and up Experiencification for young shoppers. (Business Insider

Quote of the Day: “It’s a really interesting time at the moment in catalog [music]…Sometimes, it’s a question of how we make something out of nothing.”—Tim Fraser-Harding, President, Global Catalogue, Recorded Music at Warner Music Group (Rolling Stone)

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