Financial Products You Can Pitch To Millennials And Gen Z

People born between the early 1980s and the mid 1990s are the generation called millennials, and they currently make up a large percent of the workforce. The oldest members of the next generation, called Gen Z, have also recently started joining the workforce. Thus, it is safe to say that millennials and Gen Z manage their own finances and are planning for their future, making them the largest current customer base for financial products and services.

However, the generation gap between millennials and their predecessors – the baby boomers – is very real. This is because the former’s priorities and perspectives are very different from the latter’s. Therefore, the methods used for and the products sold to the older generations will not necessarily work as well with millennials and Gen Z. This is especially true when you consider the advancement of digital banking, which is the preferred form of banking for these two generations.

Thus, millennials and Gen Z are reworking the financial industry, and that makes it extremely important for financial planners and institutions to learn to connect with them and adapt to the changes they bring. One way to do this is to offer trustworthy financial advice along with the financial products themselves, as millennials and Gen Z are more receptive to working with financial professionals. They need trustworthy advice because in spite of possibly earning more than previous generations, their income cannot keep up with the inflation rate and they are poor as a result. In fact, according to a study done in 2020, millennials are ten times poorer than baby boomers, although they make up the majority of the workforce today.

Now, let’s take a look at what financial products are best suited for millennials and Gen Z.

Financial Products For Millennials And Gen Z

Millennials have gone through more than one recession and even a global pandemic, while just starting out in financial planning. All of this has affected their views on finance and that is why certain financial products like personal loans, fixed deposits, and credit cards are better suited for them.

Following is a list of financial products best suited for millennials and Gen Z:

• Savings Bank Account: A savings bank account is a safe and easy solution to store and save money for millennials and Gen Z. It offers a small percentage of interest on the money put in it and also allows for easy access to that money when needed.

• Fixed Deposits: Fixed deposits or FDs are also a good choice of financial product for millennials and Gen Z. It allows them to save their money for later and earn better interest than in a savings account. Thus, it is a low-risk investment option and can even be used to secure a credit card, which will allow the use of the FD money at a 7% interest rate.

• Credit Cards: Credit cards are a great way for millennials and Gen Z to purchase goods and services, build and improve credit history, and earn rewards points that can be used to redeem various benefits. It is easy for anyone with a good credit score to avail a credit card.

• Personal Loans: Quite a large percentage of millennials and Gen Z prefer to travel and study abroad, but may not be able to afford it on their own. In such a situation, availing a personal loan is a great way to finance their dream. With a good credit history and score, it should be quite easy to avail of a personal loan at a reasonable interest rate.

• Health Insurance: Health insurance is an essential financial product for millennials and Gen Z. It offers security against health conditions by allowing access to quality health care. This is particularly necessary for mental peace in this post corona pandemic world.

• Life Insurance: Life insurance is another important financial product for millennials and Gen Z, as these generations are increasingly becoming the breadwinners of their families. Life insurance offers their dependents and loved ones financial security, should anything happen to them. Thus, their families will be taken care of financially even if they are no longer there.

• Mutual Funds: Mutual funds are a great investment for millennials and Gen Z. They are a relatively safe option for long-term investment and retirement planning. Moreover, there are a great number of apps and websites that make investing in mutual funds much easier to understand and do. This also makes it an attractive option for millennials and Gen Z, both of whom prefer online banking and investment to traditional forms of the same.

• Gold: Gold is a great investment option that allows millennials and Gen Z to diversify their financial portfolio. It is also a low risk, secure option because gold will always be valuable.

• Real Estate: Real estate is another long-term investment option that millennials and Gen Z should consider. It provides opportunities for capital appreciation and rental income over a period of time.

• Government-Backed Savings Schemes: In India, there are many government-backed savings schemes like the Public Provident Fund (PPF) and the National Pension Scheme (NPS). These are great long-term investment options for millennials and Gen Z, especially when planning for retirement.

To conclude, the millennial and Gen Z generations make up a large part of the workforce today, and yet they are poorer than their predecessors, the baby boomers, due to the increased inflation rate. Moreover, millennials have also gone through multiple recessions and even a global pandemic just as they were starting out in their career and financial independence journey, and it has caused them to have different perspectives and priorities than their predecessors. Additionally, with the advent of the internet and digital banking and investment, the need for financial professionals and institutions to update themselves is quite evident, especially since these forms of banking and investment are the preferred ones for millennials and Gen Z.

All of these factors show that certain financial products, like savings accounts, fixed deposits, credit cards, personal loans, health insurance, life insurance, mutual funds, gold, real estate, and government-backed savings schemes are better suited to meet the needs of millennials and Gen Z than others.

Andromeda Loans is a great place to find many of these products, especially loans, credit cards, and insurance. We are known for integrating our market experience with the trends and developments in digital technology to help customers find the financial products most suited to their needs. Head to our website to know more!