BETTER HAVE MY MONEY
New banking initiatives help Millennial customers save
Seven in 10 Millennials in the U.S. and UK say that they are often stressed about their finances. The following online and app-based banks are helping to ease their worries by launching banking initiatives that cater to this young cohort's passions, ultimately helping them save for a rainy day.
UNITED OVERSEAS BANK
Singaporean bank United Overseas Bank (UOB) is tapping into gaming to help their Millennial customers save. UOB has launched a new mobile app called TMRW that allows users to level up the more they save and unlock different options and items that help them build out their virtual cities. The bank hopes that the app will attract today's digital-first young consumers. Millennials gave rise to mainstream gaming culture, and brands that can align themselves with this cohort’s penchant for gamification stand to win favor in their eyes.
The Millennial-geared online bank Aspiration, which was founded on the premise that customers should only pay what they think is fair for banking services, is now offering rewards to customers who use their Aspiration debit card at businesses with sustainable practices. The company uses a proprietary algorithm to measure a company’s “people” score, which examines employment policies, and its “planet” score, which is based on its impact on the environment. Brands such as Target and Apple are on Aspiration's list of do-good companies. Additionally, the company promises that, unlike some of the world’s largest banks, customer deposits will never go to funding fossil fuel projects.
The savings app Plinqit is rewarding customers for learning. The app features an educational platform called Build Skills, which pays customers for engaging with financially educational content. Users can earn cashback rewards, deposited directly into their savings account, for watching an educational video or reading an article about financial literacy. This initiative taps into young consumers’ proclivity for incentivized engagement, while simultaneously catering to their desire for brands to teach them something new. The app provides a fun and easy way to save, which should resonate with Millennial consumers who worry about their financial security.
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