In most of the cases, it has been found that Fintech companies often cater to the millennials. They often develop products which are specifically geared towards the millennials. However, the millennial market, after all, is a portion of the entire market. That is why it is high time that Fintech companies should actually think about targeting the entire consumer spectrum rather than just looking at the millennials. When they do that, automatically the market size will increase.
Why do Fintech companies target millennials?
One of the main reasons why Fintech companies target millennials is because the market size is pretty huge. Also, the spending power of most of the millennials is on the higher side. In addition to that, millennials often have a higher grasp on technology. These are some of the reasons why Fintech companies almost always target the millennials.
Moreover, millennials are mostly trying to make it from scratch. As a result, they are looking for such financial solutions which can help the Fintech companies to market their products as well.
The main problem with millennials is that the debt is on the higher side. Owing to this very reason, when the Fintech companies are offering them wealth management services or any other services, the amount of money which they have to spend daily is on the lower side. This is a problem due to which the Fintech companies are actually thinking of targeting the entire consumer spectrum rather than just the millennials.
Many of the Fintech companies are already realizing the shortcoming. As a result, instead of targeting the millennials, they are looking to target different types of consumer so that they are able to tap into the whole of markets as well. With the increase in broadband penetration and also the increasing penetration of smartphone, it is becoming easier for the consumers to use the solutions which are provided by the Fintech companies in order to access their financial products online.
Also, technology is becoming more and easier to use. This is another advantage which most of the Fintech companies have. The easier technological solutions can be used by millennials as well as the other consumers alike. This is ensuring that other consumers are also able to use the solutions which are provided by the Fintech companies. This is helping the Fintech companies as well as the entire banking and finance industry in order to grow.