Every generation has its stereotypes. For millennials, they are famed by their hyperconnectivity. Yet, is it really surprising that the first generation to be raised on technology has a fixation with their smartphones?
Older generations see this as codependency, but it’s really a glimpse into our digitized futures. Hyperconnectivity isn’t a bad thing—millennials already know this. They are already accustomed to the connectedness, convenience, and accessibility that technology provides. They just got used to instant gratification—can we blame them?
Every app on their smartphone serves a purpose in their lives: from social interaction and entertainment to useful services like food delivery and fitness tracking. Why would the same not be true for their financial needs as well? And it is true. Finance apps are in high demand with Gen Y consumers, and this is no ‘happy accident.’ The way millennials use these digital solutions to make payments, manage money, and even invest is inherent to how they use already use technology on a daily basis.
The ‘set it and forget it’ side of automation
A busy generation, millennials have always taken advantage of automated services and processes in order to exhaust their energy elsewhere. In lieu of complex financial jargon and traditional systems, millennials will always choose convenience. They prefer to ‘set it and forget it,’ letting their finance apps do all the work. The Acorns app takes your spare change and its smart algorithms handle the investments for you. Clarity Money analyzes your spending patterns and gives you suggestions for how to save money. Millennials can be more passive about their finances because there’s already established trust behind the technology.
Simplicity begets loyalty
What technology has done—and what every app in existence has tried to do—is to improve the lives of its users. Now, take something as intimidating as personal finance. The apps that win out are the ones that can water down the complexities of any finance-related procedure into a straightforward, simple app, while keeping integrity. Think: Venmo. Users can make payments to friends and family in a matter of seconds, transfer funds to their bank accounts, and split bills with their roommates. It even has a social component similar to Facebook. Earn the loyalty of your customers by not only simplifying their lives, but giving them a reason to keep coming back.
Artificial intelligence in the backend
While fintech companies can do everything to make personal finance faster and more accessible for users, it’s impossible to think you can escape talking to a professional when it concerns more complicated processes. Millennials understand this, but they prefer artificial intelligence to be the first line of defense before needing to speak to someone in person or over the phone. AI chatbots and robo-advisors are the perfect solution to this. They can handle more routine questions or requests while ensuring that more individualized or comprehensive questions are passed along to the experts.