How can we disrupt traditional financial services to reach millennial consumers?
A recent study found that “33% of millennials believe they won’t need a bank in the next five years”.* If in a few years the days of waiting in bank queues are truly to be gone for the millennial generation, how can we find new ways to engage and orient traditional financial services around what matters to them?
On the back of rising innovation in AIs, Chatbots and personal assistant platforms, Financial Tech startups are beginning to disrupt traditional banking channels and business models with new solutions that are more mobile and more convenient than anything we’ve seen before.
For example, bill-paying App BillGO recently integrated with Facebook Messenger’s Chatbot to allow seamless bill payments for users through the social media platform, giving them the flexibility of paying any bill at any time any way they want.
While Silicon Valley-based research Lab Kasisto has launched MyKai - a AI powered app that lets users keep track of their finances via instant message.
Aside from changing how we pay bills or even how we bank, how we give is also being given an overhaul. People are increasingly motivated to shop with brands and companies that are committed to philanthropy – a trend also seeping into the world of finance and banking.
We're seeing more and more apps and services hit the market, that enable intuitive charitable transactions (which in the past may have been swallowed up by transaction or admin fees), and as a result, means that any donation will have an impact - no matter how big or small.
Whereas other services are piggy-backing off everyday transactions with seamless micro-donations and investments that make giving to a cause second nature.
FinTech is big business, particularly for the millennial market who are moving away from traditional banking. If “33% of millennials believe they won’t need a bank in the next five years”* the opportunity to create innovative service models is endless. Although incorporating emerging tech such as AI with finance may remain currently on the fringes, enabling technologies are catching up. They have the potential to make the world of finance accessible to a new generation of consumers who are disengaged with ‘big banking’ and fuelled by their mobiles and social media. And... if millennials are more likely to connect with a brand or new service that fulfils a social purpose, we're likely to see more enabling charitable technologies in the future within a myriad of industries and not just FinTech.
Mindset Segmentation, Human insights for the Financial Services of the Future, Accenture & Fjord*