Romeo and Juliet. Beyoncé and Jay-Z. Ross and Rachel. These are just a few of the great love stories. But should we add millennials and fintech to the mix? Maybe it’s a bit of a stretch, but with Valentine’s Day around the corner, here’s a look at fintech trends that millennials love.
App-based investment products
Sure, Robinhood’s been all over the news since the whole GameStop saga, but there are plenty of app-based investment products to choose from. Who doesn’t love options?
Robinhood, which hasn’t quite lived up to its namesake in 2021, allows users to trade stocks, exchange-traded funds (ETFs), and even cryptocurrency (baader-meinhof!) for free.
Acorns is another popular app-based investment product among millennials. The app allows users to link a credit or debit card to their account, round up to the nearest dollar amount on purchases, and invest the change in a selection of ETF portfolios. It’s passive investment that requires little to no interaction after you’ve set up your account.
There’s an investment app for every personality of investor, whether you want a more serious, professionally managed portfolio or prefer a more gamified investing experience.
Peer-to-peer (P2P) lending
"Can I Venmo you?” is a question heard at many a brunch among 20-to-30-somethings. Peer-to-peer payment transfer platforms like Venmo, CashApp, and Paypal are popular among millennials and Gen Z.
Peer-to-peer (P2P) lending is comparable to this phenomenon. It’s pretty much exactly what it sounds like. Instead of borrowing from a financial institution, you’re getting a personal loan from another individual. This concept is also called “social lending” or “crowd lending.”
Millennials are flocking to P2P lenders, like Prosper, because they tend to like the ease of the online-only and/or mobile platforms and they trust big banks less than older generations.
Cryptocurrency isn’t all about bitcoin anymore. Sure, bitcoin is at the forefront, but other cryptos have made headlines lately.
Chicago Mercantile Exchange (CME) launched ether futures on Feb. 8. Ether, which reached a record high of $1,743 on Feb. 5, is the second-largest cryptocurrency behind bitcoin.
Dogecoin, a cryptocurrency based on a meme that started off as a joke (could there be a more millennial crypto?), is no longer something to laugh at. According to MarketCap, Dogecoin is currently the 10th largest cryptocurrency, with the price up more than 1,600% so far in 2021. Elon Musk is among the many celebrities who have tweeted about the “fun and friendly internet currency” that launched in 2013 with the notorious “Doge” meme on the tokens.
Let’s be real, if you put “Dogecoin investor” on your dating profile, you’re sure to get hella people to swipe right. Or maybe not. I don’t know. I’m single.
From using wearable devices like smartwatches for banking to ditching major banks in favor of green financial services, millennials are at the forefront of saying “Bye, Felicia!” to traditional banking.
Millennials have taken to fintech companies like Revolut, which offers “one app for all things money.” The Revolut card allows users to send, receive, and exchange funds for more than 28 currencies, making it a great tool for travelers. As a generation, millennials are a growing group of travelers.
Aspiration is another alternative banking platform millennials are flocking to, as its priority is fighting climate change with different initiatives like planting a tree every time you round up your purchase to the nearest dollar. According to a Yale Program Climate Change report, nearly 3/4 of millennials said global warming is personally important to them.
Artificial intelligence is the future. Or, well, now it’s the present. Assets managed under the robo-advisor segment are expected to reach more than $1.3 million, according to Statista.
Products like Betterment are popular among millennials because of the hands-off approach to investing that allows you to avoid human interaction. The tool provides personalized recommendations based on your profile, and you don’t even need to leave the couch.