Overview from Fintech Snark Tank
a new study from morning consultation Unveiled the Fastest Growing Brands of 2021, and the findings demonstrate the growing importance of fintech in the lives of consumers.
The ranking was determined by measuring the increase in the share of consumers who said they would consider purchasing from a brand during the year.
Looking at the results by age reveals insight into each generation’s financial lives and activities, as well as other aspects of their lives.
Gen Z: crypto, cheap food, and hygiene
A look at the fastest growing brands among Gen Z shows the generation’s interest in cryptocurrencies, with Coinbase and Bitcoin (is it really a brand?) coming in at 15th place among the top 10 brands.
Other conclusions we can draw from this list about the Gen Z:
- Gen Xers looking to buy a home—or just looking Feather Them. There is a popular belief that younger consumers are not as interested in owning a home as older generations are. Zillow’s presence among the fastest growing Gen Z brands indicates something else. However, Gen Z’s growing interest in Zillow may reflect their interest in tracking home prices.
- Gen Z does not eat properly. The skyrocketing home prices on Zillow may be frustrating enough to force Gen Z to save money by eating out at fast-food restaurants like Chipotle’s and Wendy’s and snacking on junk food like Snickers and Ruffles (I’m sure that’s a good thing). Those brands would complain about the characterization, and my editors would ask me to remove that word).
- Next to the Gen Z-line is cleanliness. I don’t know why brands like Olay and Dove are on the rise among Gen Xers, but I’m not going to complain about that trend.
Millennials: Paying Later and Worrying About the Consequences
Seven financial brands—including five fintech newcomers—are among the fastest growing brands for Millennials in 2021.
Afterpay and Affirm’s presence in the top 10 brands reflects Millennials’ interest in the Buy Now, Pay Later (BNPL) craze, which will generate $100 billion in retail sales this year.
The presence of Discover and JPMorgan Chase on the list reflects Millennials’ interest in getting more credit than the extra credit they get from BNPL providers.
And then looking at Credit Karma on the list to indicate all the credit they’re taking shows that Millennials are concerned about their credit scores.
Two more payments-related fintechs—Venmo and Square Cash App—make the list, as well, showing how important financial services brands have become to Millennials.
Gen X: smoking, drinking, and having pain
If Gen X’s list of fast-growing brands is any indication of how they spend their time, Gen Xers sit around watching TV (Pluto, HBO Max, Apple TV), smoke Marlboro cigarettes, Bush Drink light beer, and treat their aches and pains with IcyHot.
However, give Gen Xers credit for exiting Theater (Regal) and Universal Studios after collaborating for all of 2020.
In addition to a traditional financial services brand (American Express), two fintech brands—Venmo and Chime—make up Gen X’s list of fastest-growing brands.
It helps dispel the belief that Venmo and Chime—and fintechs, in general—are only for young consumers (because let’s be honest here—at age 41 to 55, Gen Xers are no longer young). .
Baby Boomers: Ruining TikTok for Everyone Else
I do a lot of consumer research and I consistently find that baby boomers are not participating in the fintech boom. So it was surprising to see the Square Cash app on Baby Boomer’s list of fastest growing brands for 2021.
As a baby boomer, I’m pleased to see that peers of my generation are drinking Smirnoff and Crown Royal, not the cheap watery Busch Light beer that Gen Xers drink. But Vizzi Hard Seltzer? OK, Boomer.
growing importance of fintech
In a documentary about Rolling Stone magazine, co-founder Ralph J. Gleason commented on why he and Jan Weiner began publication in 1967:
“We believed that music would have a profound effect on society and we wanted to write about it.”
This may be a bit much to say, but 50 years later, fintech may be poised to have an even deeper impact on society.
It’s hard to believe that before this year, five fintech brands could have made Millennials’ list of fastest growing brands.
Why weren’t so many brands on the Gen Z list? life stage. Eighteen to 24 year olds are not at that point in their lives when their financial life becomes complex enough to warrant the use of too many financial management tools and accounts.
Give them a few years and we will add five to seven fintech brands to their fastest growing brand list.
Growing Fintech Community
It’s more than just consumers’ Use However, fintech tools K.
young people want Work in fintech. They believe (as they should too) that by doing so they can make a positive impact on society.
You could argue (as well as you should) that traditional banks and credit unions have a positive impact on society, too. But community banks and credit unions have never been a talent magnet, especially not to the extent that fintech companies have.
Fintech has become a community.
Photos of fintech get-togethers in different cities attract huge crowds. The authors of some fintech newsletters have become “rock stars” in the community.