The world of FinTech is booming. In fact, in the last 6 months UK FinTech companies have received £300 million in funding from VCs.
This is hardly surprising given the recent success stories we have seen emerge within this space; just look at the meteoric rise of TransferWise since it was founded in 2010. They have already raised $32.4 million from a total of 7 investors, the most recent (and notably including Richard Branson) series B round raising $25 million. This year the peer to peer currency exchange platform hit a milestone of £1 billion processed transactions, which equates to an eight fold year on year increase as they continue to make the banks hot under the collar via successful campaigns (social media and newsjacking) which expose them as being greedy and out of touch (take a look at their latest YouTube ad)
Just a quick look at some of the stats on millennials makes it easy to understand why they would rather choose a root-canal over listening to a banker:
- Post-recession and encumbered with debt; typically students now leave university with debts averaging more than £44,000. According to research most students will still be paying back loans from their university days in their 40s and 50s. This is mirrored In the US where there is estimated to be $1 trillion worth of student debt.
- Digital natives intuitively use technology centred around the internet, mobile tech and social media to carry out day to day activities. Nearly half of the 18 to 30 year olds surveyed in the UK believe they have an excellent knowledge of technology compared to just 30 per cent worldwide.
- Mobile phones, in particular SmartPhones are a necessity not a luxury. According to eMarketer UK millennials have a much higher level of smartphone ownership and usage than any other age group in the country.
- Millennials are far less attached to organised politics and religion, but hyper connected via social media platforms, forming wide networks of friends, colleagues and other interest groups.
- Unsurprisingly, millennials love brands that are authentic and disruptive (with a good dose of humour).
As millennials continue to seek out innovative new products and services they are increasingly turning to technology based businesses to cuts costs, deliver services when and how they want them and offer them a more transparent approach.
TransferWise is only the tip of the iceberg when it comes to FinTech. You only have to take a look the FinTech 50 to see other rising stars. And of course there are many who have not yet made it onto this list. Start-ups such as Kwanji who are at the beginning of their journey, levelling the playing field for SME’s who are looking for simple, straightforward and cost effective international payments.
Continue to expect more disruption and more investment in FinTech – we will be watching with interest here at DWC.
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- Innovation in Utilities and the Role of Intelligent Automation - July 13, 2020
- The future of retail Part 3: digital transformation in retail - November 26, 2019