Contributed by Manole Capital Management
Manole Capital Management exclusively focuses on the emerging FINTECH industry. Over the last few months, the nine 2020 interns of Manole Capital have conducted our 3rd annual financial services survey. This group is comprised of students from Lehigh University (4), the University of Tampa (3), Indiana University (1) and the University of Florida (1). Like our prior surveys, this research specifically targets the thoughts and insights of America’s younger generations and how they view various categories of the financial services industry -banking, brokerage, digital currencies and the payment sector.
Generations:
Baby Boomers are often characterized as optimistic, idealistic, self-driven and have shown a tendency to be loyal to one company (average tenure is 15 years). After years of climbing the corporate ladder, many are now interested in retirement and sharing their legacy. The Gen-X generation tends to be somewhat skeptical, pessimistic, independent and focused on having a solid work / life balance. This group is often described as resourceful, as they attempt to build a portable career. The two youngest generations are Millennials and Gen-Z. Early analysis shows that these younger consumers are less concerned about brands, labels or even corporate names. They tend to be quite entrepreneurial, ethnically diverse, socially tolerant and environmentally aware. These two segments were taught at a young age to collaborate and embrace flexibility (at school, at home and at work). They are idealistic and focused on advancement, with fairness.
Once again, we targeted Gen-Z (those born after 1995) and Millennials (born between 1980 to 1994) to better understand America’s younger generations. In terms of size, Millennials and Gen-Z are both over 20% of the US population. We feel it is important to understand the perspective of these younger individuals, especially since Millennials have surpassed Baby Boomers, as our largest living adult generation (according to the US Census Bureau).
Our Target Audience:
This younger generation, often called the “Internet Generation”, doesn’t know what life is like without an iPhone or social connectivity. They seek truth, value individual expression and seem to avoid labels. While most of Gen-Z is still in school, a Fast Company survey estimates that this group will account for 40% of all consumers by the end of this year. How will businesses engage, target and attract this group? The three most influential events of their lives are the September 11th terrorist attacks, the Financial Crisis and now this COVID-19 global pandemic. We are attempting to understand how this audience will bank, conduct its payments and invest going forward.
We inquired about four distinct financial services categories and received answers to our series of questions from 247 respondents. Nearly 60% of our responses were female and 40% were male. Those that answered our questions come from 28 different US states and attend 33 different colleges / universities. Our target audience was Gen-Z and we successfully hit that mark, as 95% were between the ages of 18 to 22 years old.
Our Target Audience:
Once again, we targeted Gen-Z (those born after 1995) and Millennials (born between 1980 to 1994) to better understand America’s younger generations. In terms of size, Millennials and Gen-Z are both over 20% of the US population. We feel it is important to understand the perspective of these younger individuals, especially since Millennials have surpassed Baby Boomers, as our largest living adult generation (according to the US Census Bureau).
This younger generation, often called the “Internet Generation”, doesn’t know what life is like without an iPhone or social connectivity. They seek truth, value individual expression and seem to avoid labels. While most of Gen-Z is still in school, a Fast Company survey estimates that this group will account for 40% of all consumers by the end of this year. How will businesses engage, target and attract this group? The three most influential events of their lives are the September 11th terrorist attacks, the Financial Crisis and now this COVID-19 global pandemic. We are attempting to understand how this audience will bank, conduct its payments and invest going forward.
We inquired about four distinct financial services categories and received answers to our series of questions from 247 respondents. Nearly 60% of our responses were female and 40% were male. Those that answered our questions come from 28 different US states and attend 33 different colleges / universities. Our target audience was Gen-Z and we successfully hit that mark, as 95% were between the ages of 18 to 22 years old.
Our Research:
As this chart shows, over the next five to 20 years, the percentage of the US workforce will dramatically shift towards Gen-Z. The questions we asked, as well as the information we received, is summarized below. Where possible, we have attempted to provide our conclusions, takeaways and opinions. While some might be considered controversial, it is simply intended to serve as possible Gen-Z and Millennial perspectives. In addition, since this is our 3rd annual survey, we feel it is interesting to note how certain answers have changed over the last couple of years. Lastly, we have attempted to sprinkle in a few questions pertaining to COVID-19, as this virus was beginning to spread globally, just as our survey had begun.
On Instagram, “influencers” can make millions of dollars for their social influence and popularity. Long before this term became popular, the world has attempted to understand and interpret the thoughts of our younger generations. Young people play a critical role in society, as they create and help shape our future. Older generations may believe these differences are unconventional and progressive, but we believe that understanding different perspectives is critical in adapting to change. By researching the way younger generations think / act, we can provide insight into what the future may hold. We hope you find our research insightful into America’s younger generations. We have identified a series of quotes, which has helped to shape our research. We hope you embrace this adaptability and flexibility, as you read our note.
Albert Einstein “The measure of intelligence is the ability to change.”
George Bernard Shaw “Those who cannot change their minds cannot change anything.”
Edwards Deming “It is not necessary to change. Survival is not mandatory.”
Richard Branson “Every success story is a tale of constant adaption, revision and change.”
Martha Stewart “The more you adapt, the more interesting you are.”
Before we dive into our survey, we thought it might be helpful to provide a basic working knowledge on our subject matter. Since this new technology and asset class is widely misunderstood, we wanted to weave in some fundamental insights and thoughts on currency versus digital currencies.
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