by Lauren Wiseman on February 19, 2021
Collected at: https://datafloq.com/read/5-ways-fintech-companies-targeting-millennials-ai-machine-learning/12591
The millennial generation right now has a big impact on the global economy. In the following years, millennials will own almost 50% of global revenue. So, it’s no surprise that the fintech sector is focusing heavily on innovation geared towards the millennial demographic.
As the millennials continue to drive economic shifts, the financial sector needs to adapt to bring better solutions to the market. Of course, the way to maximize fintech innovation and deployment is through AI and machine learning technologies.
From AI-driven customer service to better targeting and payment methods, there is a lot of innovation going on currently in the sector. Fintech is always racing to bring new technologies to the market, even though the financial sector is struggling to adopt new regulations.
With the millennials pushing for innovation, the financial sector is going to benefit from AI and machine learning in the years to come. Let’s take a look at the five ways fintech companies are appealing to the millennial demographic with AI and ML.
Boosting the potential of algorithmic trading
Algorithmic trading is not a new concept in finance, but it is only now possible with AI and machine learning. This is a process that uses complex mathematical models and formulae to make decisions related to buying and selling. It also requires human oversight and guidance. Algorithmic trading was costly and seemingly impossible to do in a sustainable way without AI.
Now, fintech companies are able to leverage these technologies to unlock the potential of algorithmic trading. AI and machine learning systems are able to create and make sense of complex mathematical formulae to make accurate predictions.
Along with human oversight, this kind of AI-driven algorithmic trading can manage complex variables like time, price, and volume. This way, you can maximize your resources and allocate them quickly to capitalize on the latest millennial trends.
Better targeting with AI and ML
Personalization is at the core of sales and marketing geared towards millennials. For companies to appeal to the millennial demographic, they need to improve their targeting. This helps you personalize the offer even further for millennial users and customers. This is difficult to achieve without AI systems and machine learning.
Fintech companies targeting the millennial demographic are nowadays using robo-advisors driven by machine learning to bring personalized experiences to millennials. Machine learning is also changing Google Ads and how we target this demographic. These ML-driven advisors are capable of replacing human advisors and allow for better and more precise targeting.
By collecting and collating vast amounts of data, machine learning systems are able to make better predictions and solutions. For the millennial, this means getting a personalized experience and an offer curated to their exact needs.
For the fintech company, AI-driven targeting is more cost-effective and replaces human resources for better efficiency and output.
Capitalizing on buy-now-pay-later with AI
The concept of buy now, pay later is not a new one, and you’re probably using it in your business in some form. However, it’s only now gaining the popularity and traction that it deserves, driven by the millennial demographic. The millennials want to acquire products and services now, but they might not have the money to pay immediately.
Rather than losing a sale, you have to employ some form of the buy-now-pay-later principle to motivate them to buy. You can only do this effectively by acquiring deep knowledge about your millennial customers.
For example, fintech innovators like the humm group are targeting millennials with AI systems that analyze millennial trends, assess their buying power, and scale pricing accordingly. This type of optimization allows them to appeal to the millennial with a sensible, personalized offer.
You can use AI-driven solutions in analytics and payment tech to offer better deals to millennials and create loyal customers. Buy now, pay later allows you to scale your offers just right and get the millennials to buy them on their own terms.
Enhanced customer support and service
For years now, artificial intelligence has been making its way into customer service. Currently, chatbots are poised to transform customer service because of their AI and machine learning solutions. Modern chatbots are always learning about customer preferences and compiling customer and market data. Through machine learning, the chatbot is able to learn about the customer and use their browsing data and purchase history to create a personalized experience.
What’s more, an AI-driven chatbot is able to deliver a quick solution to your customers almost immediately. This allows you to automate menial support tasks and focus your human resources on complex issues. In fintech, banking institutions are already relying heavily on chatbots and AI assistants to deliver a seamless experience to customers.
Catering to the mobile demographic
Lastly, keep in mind that AI and machine learning are transforming mobile technology. Now that billions of people are using smartphones, fintech companies need to implement mobile-friendly AI solutions. Mobile apps now have various AI features that machine learning code to help the device learn about the user’s preferences.
Banks, payment platforms, and other fintech companies are using these technologies to minimize customer effort and appeal to the millennial user. The millennials want an intuitive app that gets the job done quickly while providing a personalized in-app experience. You can only achieve this by learning about the user through machine learning and AI systems.
Wrapping up
Fintech companies are always looking for new ways to appeal to the powerful millennial demographic. Using AI and machine learning allows you to target millennials better than ever before and address their unique needs. In the years to come, AI and machine learning solutions will take over as the leading tools in millennial marketing, sales, and support.