Youth Finance

SME Finance Forum member, Strands, shares why millennials are important in banking.

Skills training and technological tools will be provided to 1,000 young coffee farmers in areas of Colombia that were previously affected by conflict. The initiative was launched in partnership Starbucks and the United States Agency for International Development (USAID). This is one part of a range of measures which the coffee chain says forms part of its commitment to sourcing ethical and sustainable coffee.

The world of banking has remained unchanged for decades; when all about them were innovating and disrupting their sectors various, the bank did nothing, managing to continue its unilateral conversation to its one customer. The middle-aged man. The banking sector has done itself no favors by eliminating the woman from their branding strategy; this already eliminates 51% of the world’s population from their message and more importantly, the segment of society who makes the most purchasing decisions -85% to be precise- for the household.

The Report reveals the emergence of the ‘Millennipreneur’, a new generation of entrepreneurs under 35 years old:

• Each of whom has already started on average 7.7 companies, versus 3.5 among the elder ‘Baby Boomer’ generation.

• On average the annual turnover of businesses run by millennials outperform by 43% those by baby boomers.

• 78% of successful Millennipreneurs have a family history in business.

There is a growing gap between banks and their customers…
The Digital Revoluion has shaped a new generaion that is disinterested in banks. To stay relevant, banks must rethink their business models and value proposions.

… and FinTech is rapidly filling it.
From 2013 to 2014, global investment in FinTech ventures tripled to $12.21 billion.
By 2020, more than 30% of banking revenues could be at risk, thanks to new competitors and new trends.