Although almost anyone can benefit from fintech, Millennials have often been the earliest adopters of some of the more successful fintech products.
This makes sense. Young people who have grown up with the internet, smartphones, and Netflix all expect a degree of convenience that many organizations can’t offer. Startups that leverage the newest technology to deliver improved service are much more attractive to this type of customer.
Of course, the end goal is to develop a customer base that spans generations. However, as with many other businesses, fintech startups usually succeed in part thanks to word of mouth. Young people may be the first to embrace new services, but as they recommend companies to family and friends, the startups they find useful will grow in popularity.
That’s why many fintech startups benefit by targeting Millennials. The following are some ways they can make sure their products reach those essential early users.
Utilizing Effective Branding
When comparing the branding of fintech businesses to traditional banks and similar financial institutions, an interesting trend becomes clear.
Although this isn’t the case universally, the brands of many established banks evoke a sense of authority. These companies position themselves as experienced financial experts that have been trusted for decades, sometimes even centuries. That type of branding has been extremely effective in the past. However, now, instead of simply conveying a deep history, it often simply conveys something that young people don’t find appealing: these companies are unnecessary and outdated.
Fintech startups, on the other hand, adopt friendlier-seeming brands. Venmo, Mint.com, Paypal – they all strive to impress upon customers that their services are easy-to-use and cutting-edge. This type of branding is ideal for a startup looking to attract Millennial customers. In this industry, a primary goal of most companies is to improve upon an existing service by using the latest technology. Branding that communicates this value helps businesses make the right first impression.
Using Tech to Attract Customers
If fintech startups leverage technology to offer more convenient financial services than traditional banks can, it makes sense that they would also leverage technology to attract and retain customers. For instance, many organizations across a wide range of industries have started to implement chatbots as a means of driving conversions, offering improved customer service, and fostering brand loyalty.
Millennials want their services to be efficient. Young people who have heard about a new fintech startup may have some questions before deciding to adopt its product. They may visit the company website to get initial information, but they might not find all the answers they’re looking for.
A chatbot is available 24/7. It also costs less than maintaining a team of customer service representatives. The chatbot could answer questions a potential customer might have, while also acquiring data that can be analyzed to boost the effectiveness of marketing campaigns, address common user concerns, etc.
Because AI is so effective at analyzing data, it can also help companies determine what type of marketing content appears to resonate most effectively with Millennials. Marketing teams can not only generate stronger content, but also determine when and how to share it for maximum ROI.
Understanding Their Audience
Although Millennials are sometimes depicted as “spoiled,” it’s important to remember that this is the generation that came of age during the greatest financial crisis since the Great Depression. As a result, they’ve been statistically more conservative with their money than past generations.
Startups marketing themselves to this demographic often make the mistake of assuming their branding should convey a fun, carefree attitude. “Buy our app that makes it easy to split the bill at happy hour!”
This is effective to a degree, but it doesn’t account for the desire Millennials often have to play it safe with their money. That’s why the branding of any fintech organization should make it clear that they can be trusted. More importantly, the actual services they provide must be legitimate and trustworthy.
Obviously, that means abiding by all regulations and implementing the most effective safety features. However, it can also mean exploring the latest technologies and determining how they can further improve the quality of a company’s services.
For example, some startups have begun using machine learning to help customers invest their money wisely. Once more, AI has the ability to analyze data far more efficiently than any human ever could. That means the idea of an artificial financial advisor is one that many Millennials find appealing. They like knowing that an effective, intelligent machine is handling their funds and helping their net worth grow.
While the best way to market a startup to Millennials varies, these general principles are still applicable to just about any fintech organization. By capturing the Millennial market, your business can then branch out to others.