Understanding the Next Generation: How Financial Institutions Can Adapt
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Keynote given at "The Future of Global Fintech Summit" in Beijing, China on March 23, 2018. Millennials are entering their prime income and spending years and have finally surpassed the baby boomer population as the largest generation both in the US and China. Millennials total 79 million people in the US, and 400 million people in China. In this presentation we touch on US fintech trends starrting with demographic shifts, lifestyle preferences, to opportunity areas (across consumer apps, insurance, blockchain, real estate, and asset management) for financial institutions and fintech companies.
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Understanding the Next Generation: How Financial Institutions Can Adapt
- 1. Understanding the Next Generation How Financial Institutions Can Adapt Andrea Lo Beijing, China March 23, 2018 了解下一代:金融机构必须考虑如何吸引年轻一代
- 2. 我的名字是盧定佳 (Andrea Lo). 我是美国华侨.出生 在硅谷. 我做过风险投资家也创办过企业.
- 3. Who are millennials? 八零 -九零后 In China – 10 years segments, in US – 20 year segments
- 4. Population: USA vs China 329,256,465 1,384,688,986 ( x 4) ~79,000,000 Population # of Millennials 人口 ~400,000,000 ( x 5) 八零 -九零后 Source: https://therealdeal.com/2018/02/18/china-has-5x-the-number-of-millennials-than-the-u-s/
- 5. Why is this important? 2015 in USA - 最大的人群: 八零 -九零后 八零 -九零后
- 6. Table of Contents I. US Demographic Shifts II. Lifestyle Differences III. Opportunity Areas
- 7. I. US Demographic Shifts 人口变化
- 8. Millennials will soon make up majority of the US workforce 八零后 + 九零后会变成最多的办公人员 八零后 + 九零后
- 9. We’re more multicultural than ever 白种人 西班牙人 黑人 亚洲人 其他人 Source: Pew Research Center
- 10. We’re more educated than ever 更多教育 男 女 受过大学教育 Source: Pew Research Center
- 11. We’re getting married later than ever 从未结婚 从未结婚结婚 寡 我们结婚比以前晚了 Source: Pew Research Center
- 12. II. Life is different for Millennials 我们的生活很不同的
- 13. 97% (1) 90% (2) % with smartphones Millennials 八零后 + 九零后 Their Parents We’re digital natives - 使用很多技术 有智能手机 他们的父母 Sources: 2016 Numbers: (1) http://www.nielsen.com/us/en/insights/news/2016/millennials-are-top-smartphone-users.html, (2) http://dmb-shanghai.com/mobile/chinese-millennials-mobile/, (3) https://www.emarketer.com/Article/Boomers-Underindex-Smartphone-Ownership-by-Wide-Margin/1013177, (4) https://www.statista.com/statistics/257045/smartphone-user-penetration-in-china/ 69% (3) 53% (4)
- 14. Wages are down since 2008
- 15. Costs have skyrocketed 美国的八零九零后负担很重指数 成本很高 放租 健康保险 教育 + 11% +34% +32% - 4.6% + 26% +72% +60% + 3% Vs. Gen-X Vs. Boomers Source: http://adage.com/article/adagestat/stat-day-generations-spent-20s/233684/
- 16. 1/3与父母同住More are living with their parents
- 17. We want to own real estate but are buying later Peak Home-Buying Age 45y/o Source: Goldman Sachs Global Investment Research 25y/o
- 18. Transfer of Wealth & Responsibility • 50M are entering their prime income earning years • Inherit $30T from their parents over next 30-40 years 继承30万亿美元 转移财富和责任 五千万人进入主要收入年 Source:, Goldman Sachs Global Investment Research, https://www.accenture.com/gb-en/insight-capitalizing-intergenerational-shift-wealth-capital-markets-summary
- 19. III. Opportunity Areas for Financial Institutions 金融机构必须考虑
- 20. Millennials are interested in fintech and want to work in the industry • Investments are #1 finance topic they talk about online • Top university talent is choosing blockchain even over artificial intelligence Top universities with blockchain courses: Top universities with fintech classes:
- 21. Millennials want to be their own bosses “Best job security comes from owning your own business” Millennials – 61% Gen X – 40% Boomers – 30% Universities are creating entrepreneurship programs / incubators as a career track 更喜欢成为老板 Source: Center for Generational Kinetics: America's SBDC study
- 22. Consumer apps: Make things easy for them online Little patience for bad user experiences or paperwork Don’t like talking to people on the phone Insurance Real Estate Currency Exchange
- 23. Insurance: Millennials expect personalized experiences. Use our data to make our lives easier. Car insurance by the mile Better health insurance rates for healthy lifestyles Student loans for high earning potential students
- 24. 92% of US Millennials Don’t Trust Banks 92%美国人不相信银行 Blockchain: Shift towards decentralization Source: Facebook IQ: Millennials + money: The Unfiltered Journey, https://fbinsights.files.wordpress.com/2016/01/facebookiq_millennials_money_january2016.pdf
- 25. Top 20 stocks held by users: 15 – Technology (75%) 1 – Bank 1 – Fintech 1 – Chinese Company Asset Management: Millennials invest in products they understand Source: https://www.nasdaq.com/article/these-are-the-top-20-stocks-millennial-investors-are-holding-says-robinhood-cm909089
- 26. Cryptocurrencies: Millennials invest in products they understand
- 27. What will they invest in? Gold Equities Hedge Funds Cryptoassets
- 28. Millennials prefer “affordable luxuries” or buying experiences Source: http://www.alizila.com/millennials-money-to-drive-chinas-consumer-market-kpmg/
- 29. FinTech: Technology that disrupts traditional financial services OR TechFin: Technology that enhances existing financial services
- 30. Big opportunity for those who will adapt!
Editor's Notes
- In America we look at generations by 20 year segments. In China you look at generations by 10 year segments. Today we are going to talk about the Millennials people born 1981-1996.
- Why is this important? They’ve become the biggest projected population and are coming of age.
- In some ways it’s been easier, in some ways it’s been harder
- They’re spending less and paying more for housing, insurance, and education
- They want to use the products and want to work in the field
- With higher costs, lower salaries, but high end tastes,
- Percent. Example =
- 3 million users, $100B transacted through the APP
- In America we look at generations by 20 year segments. In China you look at generations by 10 year segments. Today we are going to talk about the Millennials people born 1981-1996.
- With higher costs, lower salaries, but high end tastes,