Spanning a cohort born between 1980 to 2000, millennials broadly make up one of the largest generations in history (bigger than the baby boom generation). Millennials are also investing, lending, and sharing money much differently than their parents, and they are assisted by a growing set of tech-driven tools to do so.
The changing ways in how millennials manage their money is top of mind for many of the largest financial institutions in the world. In February, Goldman Sachs released an infographic on how millennial habits in health, marriage, housing, and more are impacting the economy.
Now, a host of fintech startups, and the investors backing them, are banking on millennials as a key demographic for their success. Fintech startups prominent in the millennial demographic range include “robo-advisors” offering low-cost alternatives to brokerages, to lending firms innovating in credit risk, and stock-picking and automated savings apps.
Many of the fintech startups are leveraging existing technologies already popular among young adults such as social networks and mobile messaging. Project crowdfunding sites GoFundMe and Andreessen Horowitz-backed Tilt, for example, mirror or take advantage of social networks and are largely popular among college audiences. Google Ventures and General Catalyst-backed HelloDigit transfers money directly via text message.
The graphic below breaks down the set of primarily US-based fintech companies appealing to the millennial generation including Robinhood, Acorns, Wealthfront, Earnest and more. (As we’ve also highlighted separately, startups in the digital banking market have attracted more than $10B since 2010.)
Check out the full list of the companies on the graphic broken down by target area Here