More than ever, it is clear that digital banking and app-based financial services are the way forward. Pandemic and social distancing concerns aside, young people prefer to interact digitally rather than over the phone or even in person.
Moreover, younger generations are getting their information and cues from social media, rather than traditional print or other paid media.
Even with these insights and a slew of well-financed digital campaigns, banks and other financial service providers have struggled to acquire young users. Not only do young people distrust banks, messaging and product features from longstanding banks have not amounted to compelling value propositions. Millennial users have particular preferences, few of which align with traditional banking practices. That foundation, combined with the fact that young users are famously disloyal (in Asia, 33% of millennials would be willing to switch banks in the next 90 days), many banks have taken their poor success with youth as a given.
In this context, the Nigerian digital wealth management platform Cowrywise is a model to note. Cowrywise has developed a sticky platform that combines youth-relevant messages, a compelling user interface, and appealing product features like low minimum deposits, to encourage young Nigerians to save and invest. Their unique recipe has amassed over 100,000 users in a few short years, 70% of whom are still active with Cowrywise two years later.