Millennials Outpace Gen Z in FinTech Adoption, Study Finds

According to the newest study conducted by FIS, the leader in financial services technology, millennials in the United States lead the FinTech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term adoption within the country, outpacing not only the older generation of Baby Boomers, but also younger Generation Z colleagues.

Research carried out in the US shows that people born between 1981 and 1996 are the most open to adopting digitally-oriented financial experiences, including embedded finance, metaverse, loyalty apps and neobanking.

More than 50% of surveyed millennials are making or are willing to make a direct purchase through one of the social media channels and 49% of them are likely to access the metaverse in 2023. Moreover, 32% of millennials want to use neobank or fintech company financial services in the next 12 months. In every presented statistic, Millennials surpass Gen Z and decisively outclass the Baby Boomers.

“While the general wisdom is that the youngest consumers are most likely to adopt new technologies, Millennials—who have greater spending power—are leading the adoption of many new digitally-oriented payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term and financial services, according to our new research,” Taira Hall, the Senior Vice President of Embedded Finance, B2B & Strategic Innovation at FIS, said.

The survey was conducted in September 2022 on 1,000 consumers from the US across Baby Boomers (55+), Gen X (41-54), Millenials (25-40) and Gen Z (18-24).

“Between the desire to tap into seamless shopping experiences like those in social media apps or taking advantage of the discounts and savings available through loyalty apps, the signal from Millennials and Gen Z is that there is significant potential for businesses to embed financial services within these channels,” Hall added.

Millennials Are Crypto-Friendly

According to a separate survey conducted by Alto in July 2022, almost 39% of questioned Millenials currently hold any kind of cryptocurrency. That is significantly more than their investment in mutual funds or other ‘traditional’ forms of assets.

Both surveys show how the habits of savers and retail investors are changing through the generations. Millennials are much more likely to hold cryptocurrencies and include them in their retirement portfolio. Alto reported that over 70% of people aged 25-40 who own cryptocurrencies hold them in their IRA accounts.

Tax benefits, high-return potential and diversification are the main points on the pros list of Bitcoin IRA. On the opposite side of cons, we can find higher than average volatility, high fee structure, complexity and exchange restrictions.