This document discusses the opportunities in banking presented by the millennial generation. It notes that millennials, the largest generation, dislike traditional banks and are open to switching to alternatives. Studies show millennials believe banks offer little differentiation and will be disrupted by innovative startups. They prefer low-fee digital offerings and want services tailored to their preferences for connectivity, access over ownership, and impact investing. Banks risk being left behind if they do not adapt to the demands of this emerging demographic, leaving a major opportunity for fintech companies to acquire millennial customers and transform banking.

1. S
The Millennial
Generation: Banking’s
Big Problem
Opportunities in Digital Finance

2. Why Millennials?
S They are the largest generation in US history ~92 million
S Fastest growing demographic in the world.
S Due to this, they will be a large force behind the
transformation and disruption of the banking industry.
S Their unique habits and preferences will be responsible
for reshaping the global economy in the coming years.

3. Why Millennials?
S If as a corporation or startup you are ignoring this group,
you need a new strategy.
S A massive area of growth for any company of any size.
S Companies who successfully unlock the keys to the
habits of millennials will reap major profits.

4. Millennials Hate Traditional
Banking
S The Millennial Disruption Index clearly shows what
millennials think of banks….and it’s not pretty.
S This is the time of Fintech.
S Innovative companies have stepped in to fill the gaps.
S Banks and financial services are being disrupted.

5. The Millennial Disruption Index
(MDI)
S Study done by Scratch, part of Viacom Media Networks.
S A 3-year study of industry disruption at the hands of
millennials.
S Survey of 10,000 millennials about 73 companies
spanning 15 industries.
S Shows which brands are loved and which are on brink of
disruption.

6. MDI: Key Findings
S Millenials believe banking is at the highest risk of
disruption
S 53% believe their banks offer nothing different from other
banks.
S 71% would prefer going to the dentist than listen to what
banks are saying.
S 1 in 3 are open to switching banks in the next 90 days.
S 4 leading banks (JPM, C, WFC, BA) least favorite brands.

7. MDI: Key Findings
S 68% believe accessing money will be different in 5 years.
S 70% believe paying for things will be different in 5 years.
S 33% believe banks aren’t needed at all.
S 50% believe startups will change the way banks work.
S 73% would be more excited about financial offerings from
GOOG, AMZN, PYPL, & Square than a nationwide bank

8. S
They believe innovation
will come from outside
of the industry.
This is a huge opportunity!!!

9. Millennial Demographics
S Born between 1980-2000.
S Largest generation in American history.
S Millennials 92 million, Gen X 61 million, Baby Boomers
77 million. (For comparison)

10. S
Who Are They?
Goldman Sachs Report

11. The first digital natives.
S Millennials have grown up in an “always on” world.
S Internet and smartphones.
S IM/Chat
S Video Games
S Streaming TV/Music

12. Social and Connected

13. Less Money to Spend

14. Large Amounts of Debt

15. Different Priorities: Less Marriage
and Home Ownership

16. Use Technology Differently
S Especially financial technology. People who carry huge
debt loads and make and save less money, can’t get
traditional loans and have poor credit ratings.
S Don’t have the same access to capital markets as
generations past.
S Own houses less, rent more, marry later, or stay single.

18. Spawned the “sharing
economy”
S They want access, not ownership.
S Own less cars, music and luxury goods.
S Services that provide access to products but not
ownership.
S AirBnB, Uber, Spotify, etc.
S The sharing economy has now reached FinTech

19. Millennial Consumer Habits
Study
S Elite Daily Study
S Companies that want to tap into the largest generation
should understand these habits.
S Make it part of customer acquisition strategy.

20. Findings
1. They aren’t influenced by advertising.
2. They don’t want to own houses or cars.
3. They review blogs before making a purchase.
4. They value authenticity over content.
5. Their future inheritances won’t change their buying
behavior.

21. Findings
S They want to engage with brands on social networks.
S They want to co-create products with companies.
S They are using multiple tech devices.
S They are brand loyal.
S They expect brands to give back to society.

22. Deloitte Study
S “Mind the Gaps”
S 2015 study on how millennials view corporates and
working.
S What tomorrow’s leaders think of business today.
S Study collected the views of 7,800 millennials from 29
countries

23. Deloitte Findings
S Millenials think that business needs a reset.
S Millenials would focus on people, while in their view,
today’s leaders focus on profit and personal reward.
S Feel what businesses should be doing are not what they
actually are doing. (Purpose vs. Impact)
S Men’s visions vs Women’s visions.

29. S
Where do
banks/financial services
rank?
Businesses millennials regard as showing strong
leadership/values

32. S
The Great Fintech
Opportunity
Acquiring the Millennials and the Unbanked

33. Half the World Is Unbanked

35. Half the World is Unbanked

36. S
What is Fintech?

40. S
Banks Are Very
Worried!
Accenture Report

42. Unequipped to Deal with
Digital Innovations

43. Hypothetical Banking Future

44. No Real Strategy in Place For
Digital and Innovation

45. Millennials surpass Gen X as
largest component of labor
force

47. S
Money Is Pouring Into
Fintech
And it’s about time!

51. Millennials disdain banks
S Blame banks for the 2008 financial crisis.
S This left them financially scarred and underemployed, while
carrying massive debt loads.
S All the big banking scandals that have gone unpersecuted has
also led to their disgust with banks/financial services.
S They are highly educated so they still want access to capital
markets but on their own terms: Enter the rise of Fintech.

53. What Do Millennials Want?
S High Transparency
S Very low fees
S Privacy
S Access to global markets

54. S
How Millennials Invest
Their Investment Psychology (UBS Study)

61. S
What Are Banks Doing
About It?

64. S
This Will Not Work!
Because it never does. The Innovators Dilemma!

65. S
So Where Are We
Now?
The Rise and Rise of Alternatives

66. The Rise of Challenger Banks
S A bank that provides competition to the larger banks.
S Virgin Money, Metro, Aldermore, Shawbrook, Paragon.
S BankMobile: no physical presence, mobile-only, zero
transaction fees.
S Hoping to capitalize as traditional banks shrink balance
sheets and have increasing regulatory pressure.

67. Challenger Banks- Profile
S Boost options for customers who want better rates.
S Carving niches by targeting specific markets. (millennials, unbanked,
underserved, small businesses)
S Provide faster and superior service in some cases because don’t have archaic,
layered IT legacy systems.
S “Personalize” their services for their customers. Front end when customers
walk in and back end when wanting loans.
S Lower fees (in some cases none)

68. The Rise of Digital Currencies
S And Digital Assets too!
S Bitcoin and Blockchains and Currencies.
S Other Asset Classes Digitized as well.
S $790 million raised by Bitcoin-related companies

71. S
Disaggregation of a
Bank
What it Looks Like and It’s Happening!

72. The Leaders
S USA
S United Kingdom

75. What’s This Look Like?
S A clear view of unmet customers needs.
S The ability to create a great digital customer experience.
S The use of a startup model.

77. S
Australia
Now is the time!

78. Intergenerational Report
S Australian millennials are very dissatisfied with banking and the
economy in general. (pension system to tax policy)
S Finding it increasingly challenging in a low interest rate era to save
enough to purchase homes. Min. entry level $500,000
S The Intergenerational Theft- seeing their parents (baby boomers)
acquire all the wealth but knowing they will have to support them in
the future through pensions.
S The stranglehold of the big 4 banks and the high fees they charge for
services.

80. S
$2.29 billion raised
over 129 deals
In the US alone!

82. Millennials are getting the access
they want through innovation
S “Robo advisors” low cost/fee alternatives.
S Lending firms innovating in credit risk.
S Stock-picking and automated savings apps.
S Leveraging existing social technologies with financial technologies to fit the
millennial mindset.
S Project crowdfunding.
S Wealth management with zero to low transaction fees.
S Micro-payments

85. Ignore At Your Peril
S Corporations and startups that ignore the wants, needs
and habits of the millennials will be left in the dust.
S This is the largest generation in history and their impact
on the global economy is going to be huge.
S This is the giant fintech opportunity.

86. Contact Me
S Email: george.samman@gmail.com
S Twitter: @sammantic