The financial services industry has seen a wave of FinTechs entering the market over the last decade, all competing for a technologically adept demographic.
Generation X have been recognised as key to this market. Credited as entrepreneurial, accounting for 33% of the UK’s newest entrepreneurs. Productive, regarded by 70% of businesses and recruiters as the best workers overall. Generation X have an appreciation for informality and flexibility in their work and financial arrangements. Their movement away from traditional FS&I and a willingness to engage with FinTechs, has driven a noticeable change in the industry.
FinTechs have been successful at capturing the Generation X market, by offering easy, streamlined, and efficient financial solutions, coupled with a sharp marketing strategy, often focused on the use of social media, and providing digital-only services.
As the oldest generation that’s truly open to sharing their financial data through digital channels, capitalising on Generation X means focusing on how they think about loyalty, their openness to technology, payment preferences and the process by which they prefer to transact and apply for various financial products and services.
How can traditional FS&I compete?
Any traditional FS&I organisation that’s looking to compete must use all means at their disposal, from gaining insights through efficient use of their vast streams of customer data, to adopting digital technologies, like mobile and digital wallets, smart phone payments, and also having a strong focus on social media, all underpinned by a deep understanding of their target audience.
However, attracting them is only the start, the key is in retention. No matter how they interact with their FS&I organisation, Generation X want an efficient, personal experience, delivered through a frictionless partnership, based on familiarity and trust. As many Generation X balance multiple work and personal priorities, traditional FS&I organisations need to provide them with high-value content, information and advice that they can trust and relate to.
In today’s world, security, privacy, and compliance are the key drivers that underpin how far FS&I organisations are willing to go in adopting their new digital strategy. However, the start of this journey often involves formulating a plan of how to use the vast streams of data that often already exist within the organisation, data that is often disconnected in traditional FS&I, stored in multiple locations, online and offline.
With 72% of Generation X using the internet to research businesses and spending approximately 2 hours per day on their mobiles and social media, this is a key opportunity to capture this market. Interestingly 54% of Generation X consumers feel overlooked by brands and marketers, therefore by creating messages tailored to their goals, likes and place in life, this will all pay dividends – the growth of Fintech’s has proved this.
Generation X also consider products and services that help society or the environment, in fact when it comes to investing their money, research found 61% of Generation X always consider sustainability factors when selecting an investment sector. FS&I organisations, must therefore consider ways to incorporate corporate social responsibility into their customer experience.
Further recognition by regulators of the movement towards a more digital world and a generation, aligned with FinTechs that have already made the leap, it really is time for all traditional FS&I organisations to come to the forefront, or risk being left behind for good.
The ANS Modern Data Platform Navigator is designed to help FS&I organisations unlock greater value and insights from their data by modernising current data platforms and helping their teams realise value.