From buying the best-in-market smartphone to the most popular hangouts in the city, or even that trending meme on social media, millennials are up-to-date with all the latest developments in the industry. A millennial is typically the go-to person in social circles on different issues, and highly capable of influencing peer and family decisions. Despite their internet-savvy lifestyle, the world of finance has remained largely elusive to them.
The millennial's relationship with finance- the saga so far
Millennials exhibit a disproportionate understanding of finance, unlike previous generations who had a reasonably good grasp on their finances. While millennials are technologically literate, the previous generation trumps when it comes to financial literacy.
As per the Deloitte Global 2021 Millennial and Gen Z Survey, 38% of Millennials and Gen Z said that their day-to-day finances contributed to their stress levels. This number was even higher in the 2020 Deloitte Millennial Survey conducted in India, with 50% millennials and 37% Gen Z identifying day-to-day finances as a stress driver.
This gap has little to do with the abilities of millennials, and more to do with the current financial services ecosystem.
All other sectors, from healthcare to education, have all adapted to changing consumer behaviour with time. It is possible to buy clothes, order food, book a ride at your fingertips. It is even easier to upskill, take an online course or treat your health today with the help of user-friendly tech. However, this sort of convenience is absent in the banking sector, making it difficult to manage money.
Experts at life; interns at money
According to the online campaign Deloitte PixelTM, which engaged 40 individuals in five days of interactive "missions" to better understand millennials' financial decisions, millennials exhibit little or no confidence in planning for and achieving their personal financial goals. The banking and financial services industry is heavily jargonised and difficult to comprehend. Add the lack of transparency and hidden terms & conditions, and millennials become even less confident when it comes to money matters.
Another Deloitte survey reveals that 80% of Millennials and 74% of Gen Zs in India often worry or get stressed about their general financial state. The worry or lack of confidence is triggered by a fear of the unknown and results in a lack of initiative/interest.
Millennials, who are digital natives, also tend to have a higher disposable income making them exceptionally skilled in the art of 'money comes, money goes'. However, despite great career growth and expertise in other aspects of life, they continue to feel like interns at money management. This means higher reliance on external advisors, either a financial consultant or anyone in the social circle, for guidance on money.
Redefining the relationship with money
In order to adapt to the changing times and evolving consumer needs, it is high time that the banking industry reimagines its offerings to simplify the financial journey. The emergence of neo banks as a category and their suite of end-to-end digital offerings is the first step into the future of the industry.
Launched earlier this year, Fi delivers a smarter banking experience to working professionals. The Fi app comes with a savings bank account and is designed to keep the sensibilities of digital natives at the centre. It helps them spend intelligently, maximise savings and demystify finances.
Apart from the savings account, Fi offers a host of features to empower millennials to become better at managing and taking ownership of their money.
The coolest assistant in town: Ask.Fi
One of the first steps in demystifying a user's finances is to make their current finances easily accessible. Customers often have to do a manual check to find specific transactions on their mobile banking app. Ask.Fi is a virtual assistant created by Fi helps with this and also helps automate payments in milliseconds. Want to know how much you spent on Amazon last month? Ask Fi.
Get your money in shape
Fi gives users insights specific to their personal money behavior in the form of smart statements- clear summaries on balance, spends and savings presented with visual representation such as icons and graphs- that make tracking money movement easier. The app helps you understand your spending patterns and nudges you in the direction of your saving goals.
Save on your terms
Fi's Smart Deposit (Jars) combines the best of the much loved Fixed Deposit (FD) and Recurring Deposit (RD) to help users save towards their goal on their own terms at great interest rates. A Smart Deposit gives you the flexibility to choose the amount and frequency of investment. Customers can set up a Jar for different occasions- holidays, emergency, birthdays, early retirement, etc.
With the user at its centre, Fi has identified the need for banking services to analyse customer behaviour and design insight-driven financial products that are intuitive. Fi builds on existing banking infrastructure and takes it to a whole new level!
For a glimpse into banking 2.0, check out the smarter banking experience delivered by Fi. Get early access here- https://fi.money/