Millenials - this is the first generation that grew up in the world of computers and the Internet. They feel great in the world of modern technologies and expect the same from others, for example from financial institutions. They much more often trust the operators of digital FinTech services than traditional banks.
Therefore, companies that perfectly sense their needs appear on the financial market.
Afterpay and Revolut
Afterpay and Revolut are companies that entered the market three years ago and focused on serving young customers. They offer low fees and create online user communities. The driving force behind the development of these companies is a community of dedicated users, and thus the growth and development of this type of service is ensured.
These companies offer attractive offers targeted at their clients.
Afterpay for example, it does not charge extra fees from customers who pay on time.
Revolut it lowered all fees, including currency exchange rates and, in addition, customers are offered rates for services such as customers on wholesale markets.
trade FinTech and payment brands of the type Apple Pay or Paypal they are becoming more and more known and increasingly used by young users. The most is it can be seen in Australia, where new payment platforms, experience and the ability to manage personal finances are offered. Open banking allows you to compare prices, as well as to change the service provider.
Afterpay has over two million customers and intends to enter the US market.
Revolut However, with its over three million regular users, it plans to enter the Australian market.
Traditional banks remain with the problem of how to charge in the future and how much. If nothing changes in their pricing policy, it may turn out that FinTech companies will gradually take over their clients, lowering the profits of traditional banks.