Our colleague Juanjo Gómez, Chief Marketing Officer at Coinscrap Finance, had the pleasure of sharing his vision with Pol Martín, founder of Rand App and Iván Jiménez, Head of Innovation at Mutualidad de la Abogacía, at the table moderated by Pedro Manuel Luzón, Senior Innovation Lead & Head of Delivery at Gellify: “New Young Savings”.
We find out how younger generations manage their finances
Pedro welcomed the speakers with several relevant data: “according to statistics, 54% of millennials managed to save during the pandemic months. This, linked to the fact that this generation no longer trusts the current pension system, suggests that they are really looking for new ways to grow their savings”. The Gellify representative indicated that many companies are aware of this and are launching products that help them improve their financial situation.
It was then that he asked Iván about the management of the generational change that Mutualidad de la Abogacía is carrying out: “A change that implies new behaviors and ways of understanding life, which has effects on consumption patterns”, said Pedro. The Head of innovation made it clear that, as a savings institution, they rely on financial and insurance products and remain very attentive to all emerging social trends.
“From the point of view of the legacy, we are verifying that the priorities of the family nuclei are changing. There are more and more singles and we are all more aware of the importance of the environment in our decisions”.
The fact that mutualists are facing a major change at the work level, with relationships that are thought to be short or medium term and the figure of the digital nomad, also influences their savings plans.
“If the relationship with my employer changes, the way in which I receive my income also changes and, therefore, my way of saving.” Iván also wanted to highlight that the label “Gen Z” can be applied to previous generations that adopt their behaviors. And it is that a greater understanding of the customer translates into a better service. “Certain products are already understood as consumer goods and not as property“, he stated.
The role of startups: an ally that provides flexibility and innovation
Pedró thanked Iván for his intervention and gave way to Pol, who commented:
Pol Martín – CEO of Rand App
“People between the ages of 20 and 30 have more financial knowledge than previous generations. In addition, they access information in a simpler way, with videos, tutorials, platforms, etc. Rand App seeks to help people have more savings in the long term and for that it is necessary to think about the compounding effect, to make it really attractive.”
“We try to ensure that people without knowledge of finance or investment, from the moment the App is downloaded, are very clear about its operation. We are giving them information capsules when they need them” continued Pol. The moderator took the opportunity to consult our Chief Marketing Officer: “Juanjo, you are capable of anticipating consumer behavior simply by analyzing his transactions, tell us a little about how you do it.”
“That’s right, Pedro. At Coinscrap Finance we focus on the banking transaction because it says everything about a person”. He then explained how our COCO’s help users to be aware of where, how and when they are spending, in order to regain control of their domestic finances. “Imagine, before you upload a reel of your vacation to Instagram, the purchase of the plane ticket is already reflected in your transactional” he pointed out.
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Savings and investment go hand in hand, especially for the youngest
Coinscrap Finance has been perfecting transactional categorization for years so that we can all understand that bank data and draw up the best strategies. This is the case of integration with Mutualidad de la Abogacía. Thanks to the #YoSíAhorro module, mutualists use automatic rules to achieve their goals effortlessly. In addition, the tool uses gamification techniques that reward perseverance and encourage the achievement of objectives.
Juanjo Gómez – Chief Marketing Officer at Coinscrap Finance
“Our categorization engine uses artificial intelligence to understand the data. You can find out in which shops and in which categories you are spending regularly. It is possible to detect even the type of insurance contracted and its expiration dates. Our second layer of analysis goes further and detects predictive moments, for example: a first purchase in a pet store followed by a visit to the vet can lead to the opportunity to sell pet insurance”.
Regarding the new trends in investment, Pol wanted to highlight that they are seeing “increasingly” how people who start to collect a salary “at the end always keep 20% that they invest in variable, because they predict that in the long term they will have a return.” According to the CEO of Rand App “young people are increasingly ashamed to ask their parents for money” and that is why they are looking for ways to be financially independent.
The financial changes brought by the new social and cultural context
Pedro took advantage of the moment to emphasize the need to adapt products and services so that they meet consumer expectations. The role of technology is crucial in this task, since it allows launching innovative developments that disrupt the market. And not only for end users: “Juanjo,” Pedro continued, “in your b2b model you work with banks and insurers, how do you manage to connect with the new generations?“
“The reality is that the average age of our team helps a lot, as in the case of Pol.” said our CMO. “We are very close to the end user and are always alert to discover what are the trends that are coming to the sector.” Juanjo wanted to take the opportunity to comment that Richard Thaler’s principles on behavioral finance guide the developments in Coinscrap Finance. “We help people make decisions that improve their financial health.”
Iván then highlighted the importance of obtaining a 360º vision of the user’s situation in order to offer them a better service: “We have a super important alliance with Coinscrap Finance. If we give intelligence to the data and offer incentives for young people to save in a different way, we will be able to detect patterns that allow us to shape products in the future”. He also talked about the importance of innovation ecosystems between companies and FinTechs.
It has been an exciting discussion in which we have discovered many common points and also many new opportunities to improve the population’s ability to save. We want to thank all the participants at the table for sharing their experiences and knowledge.