OBSERVATIONS FROM THE FINTECH SNARK TANK
According to one banking industry expert:
Traditional methods for financial education are a waste of time when it comes to helping Millennials plan for their financial futures–instead, credit unions should share financial advice that helps Millennials get through the week or month, and relaying that information through mobile platforms and real-time alerts.”
There are four problems with that statement, the first three being:
- Not all Millennials need help “getting through” the week or month. The oldest Millennials are 38 years old already. Many have actually moved out of their parents’ basements, believe it or not.
- Real-time alerts have been around for a long time and haven’t solved anything for anyone because they don’t address the root cause of someone’s financial troubles.
- Traditional methods for financial education are a “waste of time when it comes to helping Millennials” because they’re a waste of time for all generations.
How Fast Can We Turn Millennials Into Baby Boomers?
The fourth problem is that delivering advice on smartphones might backfire. A study on financial literacy from the TIAA Institute revealed some surprising findings:
Millennials who make mobile payments and/or track their spending with their smartphone are more likely to overdraw on their checking accounts than other consumers.
The study went on to assert that improving levels of financial literacy would lessen the negative effects of using smartphones to make payments and track spending.