Millennials are the fastest growing demographic worldwide and they have unique characteristics which companies must tap into if they want to succeed in the coming decades. Fintech is seizing this opportunity and the banks are failing. There is a major opportunity here for those who win the millennials and the underbanked globally.

1. The Millennial Generation:
Banking’s Big Problem
Opportunities in Digital Finance

2. Why Millennials?
They are the largest generation in US history ~92
million
Fastest growing demographic in the world.
Due to this, they will be a large force behind the
transformation and disruption of the banking
industry.
Their unique habits and preferences will be
responsible for reshaping the global economy in
the coming years.

3. Why Millennials?
If as a corporation or startup you are ignoring this
group, you need a new strategy.
A massive area of growth for any company of
any size.
Companies who successfully unlock the keys to
the habits of millennials will reap major profits.

4. Millennials Hate Traditional
Banking
The Millennial Disruption Index clearly shows
what millennials think of banks….and it’s not
pretty.
This is the time of Fintech.
Innovative companies have stepped in to fill the
gaps.
Banks and financial services are being disrupted.

5. The Millennial Disruption Index
(MDI)
Study done by Scratch, part of Viacom Media
Networks.
A 3-year study of industry disruption at the hands
of millennials.
Survey of 10,000 millennials about 73 companies
spanning 15 industries.
Shows which brands are loved and which are on
brink of disruption.

6. MDI: Key Findings
Millennial believe banking is at the highest risk of
disruption
53% believe their banks offer nothing different from
other banks.
71% would prefer going to the dentist than listen to
what banks are saying.
1 in 3 are open to switching banks in the next 90
days.
4 leading banks (JPM, C, WFC, BA) least favorite
brands.

7. MDI: Key Findings
68% believe accessing money will be different in 5
years.
70% believe paying for things will be different in 5
years.
33% believe banks aren’t needed at all.
50% believe startups will change the way banks
work.
73% would be more excited about financial offerings
from GOOG, AMZN, PYPL, & Square than a
nationwide bank

8. They believe innovation will
come from outside of the
industry.
This is a huge opportunity!!!

9. Millennial Demographics
Born between 1980-2000.
Largest generation in American history.
Millennials: 92 million, Gen X 61 million, Baby
Boomers 77 million. (For comparison)

10. Who Are They?
Goldman Sachs Report

11. The first digital natives.
Millennials have grown up in an “always on”
world.
Internet and smartphones.
IM/Chat
Video Games
Streaming TV/Music

15. Different Priorities: Less Marriage
and Home Ownership

16. Use Technology Differently
Especially financial technology. People who carry
huge debt loads and make and save less money,
can’t get traditional loans and have poor credit
ratings.
Don’t have the same access to capital markets
as generations past.
Own houses less, rent more, marry later, or stay
single.

18. Spawned the “sharing
economy”
They want access, not ownership.
Own less cars, music and luxury goods.
Services that provide access to products but not
ownership.
AirBnB, Uber, Spotify, etc.
The sharing economy has now reached FinTech

19. Millennial Consumer Habits
Study
Elite Daily Study
Companies that want to tap into the largest
generation should understand these habits.
Make it part of customer acquisition strategy.

20. Findings
1. They aren’t influenced by advertising.
2. They don’t want to own houses or cars.
3. They review blogs before making a purchase.
4. They value authenticity over content.
5. Their future inheritances won’t change their
buying behavior.

21. Findings
They want to engage with brands on social
networks.
They want to co-create products with companies.
They are using multiple tech devices.
They are brand loyal.
They expect brands to give back to society.

22. Deloitte Study
“Mind the Gaps”
2015 study on how millennials view corporates
and working.
What tomorrow’s leaders think of business today.
Study collected the views of 7,800 millennials
from 29 countries

23. Deloitte Findings
Millennials think that business needs a reset.
Millennials would focus on people, while in their
view, today’s leaders focus on profit and personal
reward.
Feel what businesses should be doing are not
what they actually are doing. (Purpose vs.
Impact)
Men’s visions vs Women’s visions.

29. Where do banks/financial
services rank?
Businesses millennials regard as showing strong
leadership/values

32. The Great Fintech
Opportunity
Acquiring the Millennials and the Unbanked

33. Half the World Is
Unbanked

35. Half the World is Unbanked

36. What is Fintech?

40. Banks Are Very Worried!
Accenture Report

42. Unequipped to Deal with Digital
Innovations

43. No Real Strategy in Place

45. Millennials surpass Gen X as
largest component of labor force

47. Money Is Pouring Into
Fintech
And it’s about time!

51. Millennials disdain banks
Blame banks for the 2008 financial crisis.
This left them financially scarred and underemployed, while
carrying massive debt loads.
All the big banking scandals that have gone unprosecuted
has also led to their disgust with banks/financial services.
They are highly educated so they still want access to
capital markets but on their own terms: Enter the rise of
Fintech.

53. What Do Millennials Want?
High Transparency
Very low fees
Privacy
Access to global markets

54. How Millennials Invest
Their Investment Psychology (UBS Study)

61. What Are Banks
Doing About It?

64. This Will Not Work!
Because it never does. The Innovators Dilemma!

65. So Where Are We Now?
The Rise and Rise of Alternatives

66. The Rise of Challenger
Banks
A bank that provides competition to the larger
banks.
Virgin Money, Metro, Aldermore, Shawbrook,
Paragon.
BankMobile: no physical presence, mobile-only,
zero transaction fees.
Hoping to capitalize as traditional banks shrink
balance sheets and have increasing regulatory
pressure.

67. Challenger Banks- Profile
Boost options for customers who want better rates.
Carving niches by targeting specific markets. (millennials, unbanked,
underserved, small businesses)
Provide faster and superior service in some cases because don’t have
archaic, layered IT legacy systems.
“Personalize” their services for their customers. Front end when
customers walk in and back end when wanting loans.
Lower fees (in some cases none)

68. The Rise of Digital
Currencies
And Digital Assets too!
Bitcoin and Blockchains and Currencies.
Other Asset Classes Digitized as well.
$790 million raised by Bitcoin-related companies

71. APIs
Open Them Up!

73. Disaggregation of a
Bank
What it Looks Like and It’s Happening!

74. The Leaders
USA
United Kingdom

78. What’s This Look Like?
A clear view of unmet customers needs.
The ability to create a great digital customer
experience.
The use of a startup model.

81. Australia
Now is the time!

82. Intergenerational Report
Australian millennials are very dissatisfied with banking and the
economy in general. (pension system to tax policy)
Finding it increasingly challenging in a low interest rate era to
save enough to purchase homes. Min. entry level $500,000
The Intergenerational Theft- seeing their parents (baby
boomers) acquire all the wealth but knowing they will have to
support them in the future through pensions.
The stranglehold of the big 4 banks and the high fees they charge
for services.

86. $2.29 billion raised over
129 deals
In the US alone!

88. Millennials are getting the
access they want through
innovation“Robo advisors” low cost/fee alternatives.
Lending firms innovating in credit risk.
Stock-picking and automated savings apps.
Leveraging existing social technologies with financial technologies to fit
the millennial mindset.
Project crowdfunding.
Wealth management with zero to low transaction fees.
Micro-payments

91. Ignore At Your Peril
Corporations and startups that ignore the wants,
needs and habits of the millennials will be left in
the dust.
This is the largest generation in history and their
impact on the global economy is going to be
huge.
This is the giant fintech opportunity.

92. Contact Me
Email: george.samman@gmail.com
Twitter: @sammantic