#9. Fintech for Millennials neglecting Older Generation – Grey Matter-December 28,2021-

“That is no country for old men. The young in one another’s arms, birds in the trees – Those dying generations at their song,…Whatever is begotten, born, and dies. Caught in that sensual music all neglect Monuments of unaging intellect”- William Butler Yeats

Most Neo-Banks, NBFCs and Fintechs have focused and furthered an ecosystem where ‘youth and masses’form the universe. Older customer base (say 50 plus) , Retirees, Women , Specific Regional products, it is felt have been cold shouldered.

👍. प्रस्ताव / For the motion: 

  1. The fintech adoption rate in Asian Countries is the highest in the world. Older generation too have taken a plunge into the digital world but Millennials are low hanging fruitswho are tailored for the new business. There may be consequences to this new fast and easy lending experience. The availability and appetite for convenient loans (mainly unsecured loans) has pushed debt levels among millennials and Generation Z to concerning levels. Now borrowing is shifting towards debt consolidation. Older generation believed in the virtue of saving to borrowing.
  2. Women make up 55% of the world’s unbanked population, meaning they have no access to banking or insurance products. Baby Bloomers (born World War -II to 1975), and Women – especially those living in poor and marginalised communities – are most likely to be on the wrong side of a persistent digital divide.
  3. Women face many barriers to accessing the financial products and services they need – mobility constraints, lack of collateral and limited mobile phone ownership, to name a few. One of the persistent and lasting barriers is that financial products are not designed with the needs and constraints of low-income women in mind, because little is known by financial institutions about these customers. In India, banks have been at forefront in bridging the divide in the form of financing Joint Liability Groups (JLG) and Self Help Groups (SHG). Though the format is still mostly traditional physical way. 

👎अप्रस्ताव / Against the motion:

  1. Millennials are more receptive to the changes in the financial and technology world. Millennials, having grown up with the internet, are more receptive to new technological and digital offerings. They prefer tech products for anything and everything, on which FinTechs are betting. According to Salesforce Research, about 37% of millennials have financial relations with a tech company, the highest among all age groups.
  2. Millennials (born 1981-1996) and Generation Z, typically born at the fall of the last millennium, doesn’t just want to buy products instantly and seamlessly but they are always looking for an experience. Experiences, which they will share on Instagram and other apps at the same time. They tend to have a high-risk appetite. They are also looking for attractive investments, may be not tangible e.g., Non-Fungible Tokens(NFT), Cryptocurrency quite away from traditional investments and retirement planning. Older generation, more likely,  would weigh in risks in terms of tangibility. Older generation by virtue of experience, probably have let go convenience at the altar of safety and prudence. With the increasing prevalence of online transaction, the impact of digital scams has been significant. TransUnion (Credit Bureau) company found that the percentage of suspected digital fraud attempts originating from India against financial services businesses had increased by 89 per cent. Globally, financial services fraud attempts increased 149 per cent.
  3. There’s increased adoption of mobile phones and availability of affordable internet tariff is only going to facilitate the transition from traditional to digital banking. Digital banks, enticed customers with mobile-friendly experiences, 24/7 customer service which appeal to newer generations.. FinTechs are also boarding rural youth as banking correspondents, offering those means to become self-reliant and earn a livelihood or additional income

Names given to different generations:

Name of the GenerationBorn during the period
The Lost Generation1883-1900
The Greatest Generation1901-1924
The Silent Generation1925-1945
Baby Boomer Generation1946-1964
Generation X1965-1980
Generation Y1981-1996
Generation Z1997-2012
Generation Alpha2013-2025

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