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Finances with benefits attract Canadian Millennials
Based in Vancouver, Canada, Mogo is an online bank focused on helping Millennials develop healthy spending habits and supporting users struggling with debt. The company currently operates online only, but has plans to open a storefront in Toronto. Its online presence and approach is set on disrupting the financial services market. Hoping to allow more middle-income and low-income consumers to get involved in online banking and potential investment, Mogo offers loan consolidation and quick cash services.
Mogo encourages financial literacy through games, offers a free prepaid Visa card with no monthly fee, and in an effort to wean clients from credit cards, the site gives lower rates to those who pay promptly. The company’s motto, as communicated to new customers, is “Welcome to the rebellion. Uncredit card your life.”
Disrupting the banking space
Digital banking and disruptive offerings are gaining attention all over the world: a new digital bank in India is allowing consumers to open accounts with a selfie, PayPal’s commercial during the 2016 Super Bowl focused on how the payment service is the future of money, and Orange is set to open a 100% mobile bank in France.
67% of Canadians would conduct financial transactions via a computer/mobile device if there were an incentive
As consumers find more reasons to try out online banking services, the market will continue to grow. According to Mintel’s report Attitudes towards Technology in Financial Services Canada 2015, 67% of consumers said that they would conduct financial transactions via a computer/mobile device if there were an incentive to do so (e.g. no fees, cash bonus, gift card).
Mogo’s incentives and fee-free services are bound to appeal to individuals who are struggling with debt, as well as those who need help saving, spending, or otherwise developing healthy financial habits. Similar offerings we’ve seen include Savedroid, a German start-up that makes saving money automatic, and TWYP, a new digital payment app from Dutch bank ING that helps track spending.
Final thought
Brands will need to keep innovating as consumers become more comfortable with banking online, and would do well to develop offerings that deliver on convenience but also provide tools that help consumers spend, save, and invest in the ways they want.
Carli Gernot is the Manager of Trends for North America. She’s been contributing to the success of Mintel Trends since 2010, spotting trends and shifts in consumer behavior all over the world. Carli is responsible for creating content for global trends, North American, and EMEA regions as well as ensuring that North American consumer trend content is relevant and insightful.
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