Millennials – The New Wave That’s Changing the Face of Pretty Much Everything about Money
Millennials are now officially adults. To be more specific, millennials are stepping into their spending years. A study by Goldman Sachs indicated that millennials will reshape the economy, and yes, there is truth in that.
Just last September, Singapore hosted the Millennial 20/20 Summit. The summit’s intention was to help brand names and businesses stay relevant to the exclusive preferences of millennials and their monetary preferences on finances, spending and their lifestyle. This year, the Millennial 20/20 will take place in Singapore in October – more details are available here.
Mobile and Commerce Becoming One
Fergus O’Hare, the head of Facebook’s Creative Shop elaborated on how mobile and commerce had a symbiotic relationship. A good number of micro businesses were using Instagram as their shop’s front. The Bank transfers that followed the purchases were done via Private Messages (PMs) on Facebook’s platform.
Another part of the mix was on how smartphones would become a valuable shopping assistant. Shopping would no longer involve creating a note with a list of items to be bought. Instead, a virtual helper would compile the different prices of an item and let the buyer know the place to get the best deal.
Teresa Condicon of Snapcart pointed out that pretty soon online and offline worlds would work in unison, and that it would take a series of algorithms to gel the two together.
On a separate note, a study by Connected Life indicated that 46% of millennials in Asia Pacific spent their time browsing social media platforms, and 12% used their time online to shop. Given the way millennials seek out information and reviews on a product before considering a purchase, it would be wise for retail businesses to have a holistic, multi-faceted customer support system in place.
Transacting With Banks
Millennials consider banks a safe haven for their money and the most regarded source for personal finance advice, with a soaring 88% as indicated in a report from Oracle Financial Services and Wharton Fintech. This particular human segment also had a high mobile dependency, with as much as 68% of millennials across the world leaning towards mobile and desktop means for communicating with banks.
The future for digital banking will be reigned by banks that have a Mobile-First banking application. Seeing that millennials have high standards in all things fintech, the crowd would be a tough one to please. Mature Millennials (aged between 26 – 30 years) and Young Millennials are potentially more open to non-bank options with individuals dabbling in mobile wallets, mobile money, alternative payment providers and peer-to-peer payment modes.
According to the report, millennials don’t consider their banks lifestyle-enabled to date. They are, however, supportive of banks that provide them with the means to reach their financial milestones and monetary needs. It is up to the banks to zoom in before all is lost, the Oracle Financial Services and Wharton Fintech study concludes.