Financial Tech Trends: Plant Seeds

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Financial Tech Trends: Plant Seeds

 For many millennials, the stock market is a vague, powerful entity that their parents are involved in, a concern for the future. It’s not that they don’t understand the stock market, they just have no need to at their current socio-economic stage: it’s oft-perceived that the stock market is for the wealthy, not the Starbucks baristas, students, and entry-level workers that make up the 18-34 demographic. Several companies are trying to change that. Acorns is trying to get millennials in an investment mindset by investing the rounded up totals of purchases for them (if you buy something for $1.73, it’ll invest $0.27 on your behalf). As a millennial, I’ve tried the service myself; in the first week I made a 400% return on my invest of $1.00, but it’s since then levelled off to little more than breaking even. Although it doesn’t allow for much freedom, it gives young consumers a taste of what their money can do for them if invested, and may leave some of the more ambitious users wanting more. If that’s the case, they might check out Robinhood, a retail brokerage app with an average user age of 27. Robinhood charges no commission, and requires no account minimum to start trading.

While the quantity of millennials ready to jump into trading stocks is unknown, lowering the cost and convenience barriers will encourage younger participants to give it shot. Credit unions that offer investment management and counseling can be a friendly guiding hand in these early investment stages so that millennials look upon them favorably when their money management needs are inflated. By adopting and adapting to these technologies, your CU can establish itself as a guiding light for other financial institutions to maintain technologically relevance.

Check out the other posts in our series below!

Part 1: Selfie Pay and Part 2: Branching into Digital