The Millennial generation is the largest generation, representing approximately 81 million potential banking customers. Many traditional and fintech firms are now focused on targeting this segment. Below are a few unique products that banks and fintech firms are offering to get Millennials in the door:
1. Radius Bank launched a new debit card product designed to help pay the account holders’ student loans. The Bank has partnered with Gradifi, a student debt-repayment platform, to pitch this debt reduction product as part of a plan to capitalize on the large amount of Millennial debt. Tim DeMello, Gradifi’s CEO stated, “What Millennials really want is for someone to create a rewards program for them and put all that money in their student loan accounts.” The debit card, which is linked to a checking account, applies 1% of account holders’ monthly purchases to their student loan balances and is aimed at high-income, high-credit score, and high-debt Millennials.
2. The Bancorp Bank has partnered with financial technology firm Chime to offer an all mobile checking and savings product. The Chime account allows customers to manage their accounts via a smartphone app, which offers more capabilities than merely reviewing their accounts. For instance, the app allows the user to disable stolen debit cards and chat with customer service agents, and it provides real time transaction alerts and a person-to-person payment feature. Chime also offers an automatic savings feature, where each purchase on the card is rounded up to the nearest dollar and the change is transferred into a savings account. The company pays a 10% bonus on the weekly amount rounded up. The checking and savings accounts are FDIC insured through The Bancorp Bank.
3. Aspiration Fund Adviser, LLC is a digital investment firm that markets itself as “having a conscience.” Investors can decide the fee amount to pay their investment advisors, and 10 cents of every dollar from that fee is donated to charity. The firm also offers products such as the “Redwood Fund” that invests in sustainable and environmentally friendly companies.