PETALUMA, Calif., May 10, 2018 /PRNewswire/ -- The appeal of marketing FinTech products and services to millennials is that they are a generation rooted in technology. With social media and an inherent inclination to try out new technology, millennials seem like the perfect audience for FinTech companies. However, they also don't have as much wealth to throw at such companies. Brandon Frere is CEO of a few companies that market their services to millennials and others with similar needs. Frere believes a company should establish an audience based on who would benefit from its services.
"There's value in marketing FinTech services to millennials because they are a big demographic that will be around for years to come," said Frere. "But when the success of a company depends on its customers, like they usually do, they might do better to target a variety of demographics who can both benefit from the service and pay for it."
Millennials are the largest living generation today. The more than 75 million millennials spend $1.3 trillion annually. But they hold much less wealth than older generations. While Baby Boomers hold 50 percent of the wealth and the Silent Generation holds 33 percent, millennials hold only four percent of the nation's wealth. Some experts suggest that companies should target those older generations that can spend more money on their products and services.
Brandon Frere prefers to focus on the problem that FinTech companies aim to resolve. Companies that offer mortgage lending services may market to older millennials or younger Gen Xers, those who may have a good balance of income and desire to buy a home. FinTech companies focusing on student loans may target younger adults. Other companies offering financial services involving retirement should market to Baby Boomers and other older generations.
"It can be tricky figuring out who to market to when you have to balance demand with potential revenue," said Brandon Frere. "When millennials make up so great a portion of the population but represent so little wealth, companies might hesitate to target them. Or, they might go all-in and fail to get enough revenue. I believe the trick is balance, and to achieve that I focus on the services my companies offer and who might benefit from them the most."