What does Fintech mean to the next generation?

Fintech. The growing industry that millions of people engage with on a daily basis.

According to www.distruptivefinance.co.uk there are over 5000 start-up Fintech companies worldwide today

Now as what you would call a ‘millennial’ I feel that I have embraced the age of ‘Fintech rather well. Raised with the world as my television set and in an age where my first phone was a Nokia, I feel as if I’ve embraced this new technology era with open arms.

 “But what is Fintech?” I hear you cry! FinTech Weekly defines it as “A line of business based on using software to provide financial services.” But what does this mean to the users? And more importantly, what does this mean for Banks? I have been recruiting into the Fintech industry for the past 18 months and I am very interested in what Fintech means to the next generation and how they use it in day to day life.

My first stop was a tech savvy 13 year old who was eager to tell me about every gadget and app on her brand new iPhone 5c. One of these many apps included her Mobile Banking. She proceeded to tell me that the majority of her peer group have a bank account and use online banking.

I was slightly taken aback by this figure, at such a young age they were already fully engaged with their local banks but what I was interested in was how they engaged. She explained that she preferred the face to face aspect of going in to her local bank (Not to mention all the free pens/lollies and various other knick-knacks!) but above all the freebies, it was the chance to actually speak with someone face to face.

 Online banking has its technical downsides, for example, not being able to access it if you aren’t always connected to the internet. There are also the risks that come with storing this data online but the upside for a 13 year old from her perspective is ability to bank on the go for those emergency transactions, for example that must have pair of shoes from Topshop! On top of this it offers the opportunity to track transactions in real time.

So what does this mean for the world of FinTech and the youth of today? Remembering that online banking is only a small part of this industry I believe that if banks continue to bring forth an exciting face to face approach, there will be room for both online and face to face banking in the years to come.

How do you think the next generation will use Fintech?

For further information please contact Natalie Winterton on 01628 857330 or natalie.winterton@bps-world.com