According to research, millennials are confident, connected, and open to change. This generation is seen as more liberal, more inclined to technology and concentrated on the power of social networks.
It's no wonder the biggest social network Facebook leads directly to a millennial: Mark Zuckerberg. Be it Beyoncé, Kim Kardashian, or Justin Bieber, millennials have successfully registered their presence in the world.
This adaptability of a generation composes of 75% of the world's workforce by 2025, causing some rapid changes in traditional businesses like banking and finance.
However, millennials are struggling in understand the financial products being marketed. In a recent study, it was determined that over 59% of current college students can't even describe a credit score.
With all these changes occurring, it is becoming harder and harder for brands to effectively brand to millennials, especially un-sexy ones like Fin-tech. Here is how to market fin-tech to millennials.
1. Sponsorships and partnerships
These days it is common to see banks like JPMorgan sponsor Serena Williams or partner into unrelated banking products like movies or sports.
What's the power of seeing Serena Williams partnered with a powerhouse brand like JP Morgan?
Simple. The association between a rock star tennis player who has no overlap with banking and fin-tech. Immediately when someone sees an endorsement of Serena Williams with a brand like JP Morgan, the association becomes stronger, and makes people buy products from JP Morgan versus other competitors.
Everyone needs banking, why not do it with JP Morgan and your favorite tennis player who uses JP Morgan?
These new marketing techniques are based on the versatility and need for change that the millennials carry with them.
2. Social Platforms
FinTech is now approaching social media like Facebook, Pinterest, and Snapchat.
Bank of America has been using Pinterest as the platform to reach millennials by creating Better Money Habits, a campaign and a website focusing on personal finance content targeted to the millennial generation.
The bank puts up pins for wedding dresses under the title of "Save Your way to the perfect dress" making a clear marketing strategy and speaking to the frugality of the millennial generation.
Banks are now focusing on the analysis of data from the social platform to judge what millennials expect from them and this gives birth to a multitude of marketing ideas.
According to Goldman Sachs millennials have less income and high depth levels, which is why we can see the new and focused wealth management plans designed and marketed for them.
3. The Tech-Savvy Image
Banks are trying to create an image of versatile and tech-savvy institutions by using mobile or social networking platforms.
It is very common now to see banks have their own mobile application and club their services with other service providers to attract more consumers.
4. Third Party Deals
The banks make deals with e-commerce giants, travelling partners and online service providers to appear as a flexible and intelligent unit Standard Charted and Amazon are one such team we love to play with!
It should not come as a surprise that this sole technique has worked in favor of the banks and as a result, the number of credit card holders in Gen Y has grown rapidly.
5. Social Causes and CSR
It has been found that 89% of Millennials more likely will buy from a company with a social or environmental mission, according to data from Cone Communications.
Thus, the association of banks to such causes is another well-driven marketing strategy. One example of this is of Deutsche Bank's "Buddy Volunteer" in Malaysia.
Fin tech's adoption for millennials is changing dramatically, and is focused more on delivering value to the consumer and being transparent as possible.
The focus has immediately shifted from hard selling consumers, to informing them about their products and services.
What methods have you found work best when marketing to millennials?