How Fintech is Influencing Millennials’ Financial Literacy
For years, the financial services industry has remained stagnant; that is to say, the industry hasn’t changed too much for centuries. From banking to accounting to investing, the entire industry had essentially figured out a way of performing their services, and stuck to it for decades. However, this is the 21st century, and the technological and digital revolutions are impacting every facet of our society. And the financial services sector is no exception.
Enter the world of financial technology, or fintech, as it’s more commonly known. Fintech is, in essence, any form of technology that is used to assist or produce any financial service, ranging from computer software to mobile applications. And recently, in only the past few years or so, this incredibly young industry has managed to make a major impact on financial services. According to Financier Worldwide, last year alone saw huge interest in fintech, with over $15.2 billion in global investments. Newer fintech companies, such as Stripe, a mobile payments processing company, are becoming incredibly popular in the financial services industry, with Stripe having accrued a whopping $450 million in revenue last year alone, according to a report from Forbes.
As millennials, and even younger people, continue to rely more on their smartphones and mobile applications, fintech is becoming more powerful. This, in turn, is having a profound effect on the way that millennials use their money.
Recently, in an article from Forbes written by the co-founder of fintech startup Exeq, Isaac Kassin noted the huge gap between millennials and traditional banking services. According to the article, the Millennial Disruption Index, which surveyed over 10,000 millennials through the course of over three years, found that 33% of those surveyed do not think that they will need a bank at all. And another survey from Blumberg Capital found