What are some ways that the fintech industry needs to evolve to better serve younger people today? originally appeared on Quora - the knowledge sharing network where compelling questions are answered by people with unique insights.
Probably the biggest hurdle the fintech industry needs to overcome is educating consumers. Managing your finances can be a tricky thing, especially for younger people who are often not given a course in financial literacy growing up. And even when people take those courses, research has proven almost all of those lessons are forgotten within six months. The financial system itself is also unnecessarily complex in many ways which only adds to the confusion.
The best thing the fintech industry is doing and needs to continue pushing is transparency and making sure we adapt our communication styles to something the average consumer can easily understand. Teaching people exactly how these systems work can be transformative in changing people's behavior and getting them on a path to financial wellness.
It's also important to create a direct link between actions we take to outcomes they cause. Often with finances, making little changes can have exponential effects over time so we may not fully grasp exactly how this will change our financial picture in 5,10,20 years. If the only thing a person gets out of EarnUp is a better understanding of how their loan works, I think it's a win. (Obviously we want to help them with all of their loan management, but at the very least an educated consumer is good for everyone).
Thankfully a lot of groups are already doing these things. Groups like Bee, Remedy, WiseBanyan and of course, EarnUp are providing the tools needed to make a positive change and truly educate the consumer. As Fintech grows and becomes more accessible to everyone, I think we are going to see a major growth in financial literacy causing a lot of the old institutions to either change or die out.
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