The tech which powers finance today is enabling Millennials and Gen Z-ers to master their money in ways previous generations would not have thought possible in the past.

Exploring the advantages of fintech and how this applies to money management is a good way not only of understanding the opportunities that are out there at the moment, but also how far we’ve come in a short timeframe.

Here are just a few examples of the revolutionary impact that fintech has had, and continues to have, on the fast-maturing Millennial marketplace.

Earning extra cash is straightforward

Making money is an important part of managing your finances, and fintech has fuelled the availability of online side-hustles so that people aren’t stuck with nothing more than their salary from their 9-to-5 job.

A quick look at PlainFinances guide to money making apps reveals just how large and varied this market has become. 

From simple processes like earning cashback when you make online purchases, to full-blown freelance opportunities from platforms like Fiverr, Millennials can tailor their earning to suit their needs.

And because all of this is accessible via the web, it’s incredibly accessible as well as endlessly convenient to top up your paycheck.

Banking is a breeze

Traditional banks have been forced to up their games by fintech upstarts in the past decade, and the result has been transformative when it comes to online money management.

All-digital banks in particular have shown that having a bricks and mortar presence is no longer a necessity to attract customers. And with automated features like tracking spending and expenses, as well as fraud detection and exceptional mobile app design, it’s easy to see why.

In turn this has made other businesses pay attention to the habits of modern consumers. Integration with web-powered payment platforms and banking apps is changing the way we pay for goods and services both online and in person.

Decentralization is disrupting the market

Cryptocurrencies are more popular among Millennials than any other generation at the moment, and as investments skyrocket, the concept of decentralized finance is becoming more mainstream by the day.

This is both a problem and opportunity for traditional banks, because while there has been animosity towards the crypto movement for most of its lifespan so far, there are increasing signs that this relationship is thawing.

It all comes down to demand; if enough customers are interested in trading crypto, or using it as a payment method, then banks have little choice but to listen.

And moreover there are myriad services arising which make this market child’s play to navigate, empowering a generation that has had to put up with both the 2008 financial crash and the pandemic.

Understanding is expanding through transparency

All of these factors influencing the way younger people manage their money have come together to provide increased transparency as well as more control for average consumers.

And with this has come a deeper understanding of the ebb and flow of the financial pressures which they face.

In the past, lots of people were loath to check their bank balance for fear of what it might reveal.

Today, since anyone can look this up online and see money flowing into and out of their accounts in real time, it has helped to demystify finance and make it less scary.

This does mean that there is a greater reliance on connectivity and interoperability than ever before. But again, if there is demand for banks, payment providers and businesses to work more closely together, barriers will be broken down time and again.