How Younger Generations Are Changing the Financial Industry
The higher tendency of millennials to adopt new alternatives for banking and other financial services has been largely documented at this point. The vast majority of millennials have used or use FinTech services and applications on a regular basis, and this tendency is only expected to continue to grow in the next few years. Nevertheless, little attention has been paid to the yet younger Generation Z, which users begin their financial lives with a plethora of financial technologies at their disposal.
A survey recently conducted by the FinTech News portal found out that over a third of Gen Zers skip traditional branch banking services altogether in favor of new financial technologies, in their vast majority driven by the more favorable fees (or the absence of them) and the general practicality and ease of use. It can be pointed that the other two thirds of these users are still sticking partially or completely to their traditional banking branches. Nevertheless, the fact that so many users from the Generation Z never bother touching a traditional bank subverts the narrative according to which FinTechs are far from posing a risk for big banking branches.
With innovation in the FinTech industry growing at an exponential rate, many interesting features are being added to complement banking services, which might range from contactless payments to digital cards and whatnot. It is thus impossible to tell whether there might be a game changing service in the future that could represent a radical shift in people’s preferences when it comes to banking.
Such a radical shift is precisely what SBank seems to accomplish, by being the first in the market to fully implement distributed ledger technologies into a fully functional, streamlined and uncostly online banking platform. These technologies will allow for features that were not previously possible, such as real time global transactions with little to no cost, multi-currency accounts with no added or hidden fees for currency exchange, fully fledged digital loans, intermediated contactless payments and much more.
Once such a service is on the market and able to gain a significant traction among users, it could mean the stepping stone towards the widespread adoption of distributed ledger technologies. This would not just change banking services themselves, but many of the most basic elements of financial transactions, such as the use of currencies, and the way in which people carry out and manage their businesses.