Based on the overall buying power of millennials, which accounts for $200 billion annually, it is no secret that the younger generation is of great significance.
The issue involved here is making millennials change their attitude toward banks, which remains in the center of their transactions. There is an undeniable distaste and distrust among millennials towards banks, and GlobeOne intends to reinvent the standard set.
GlobeOne is a new fintech company looking to transform the banking industry into an engaging activity in which we interact with on a daily basis. As opposed to a mundane chore that is thrust upon us, and is ultimately unpleasant, GlobeOne wants to add an element of social value to the process.
In an attempt to become more “millennial friendly”, banks are increasingly shifting their services to adhere to their up-and-coming customers. In a world where countless services are accessible through a swipe to the left or right, it only makes sense that banking would follow suit.
Backed by an ever-growing, global network of financial institutions, GlobeOne optimizes the banking experience for millennials, while also acting as a social conduit, making an impact on multiple lives just by making a simple deposit.
Through GlobeOne’s SocialBoost technology, banks return around 50% of the interest they actually earn on individual deposits back to the “GlobeOne Community.”
To learn more about this movement backed by GlobeOne, Payment Week spoke with Les Riedl, the CEO of GlobeOne to dig deeper:
Q: Why is there such an emphasis on the “millennial” consumer? What do they offer?
Millennials are poised to become the largest generation in history. They represent $200 billion in annual buying power, yet they are the largest age group among underbanked Americans. According to a Javelin Strategy & Research report, nearly half of 79.4 million who are underbanked in the US are under the age of 35. With the first wave of millennials still in their early thirties, most are at the dawn of their careers and are poised to drive our economy in the decades to come. Banks need to be in a position to serve their needs and help them grow their economic potential.
And, while millennials are one of GlobeOne’s primary areas of focus at launch, we also see a much broader demographic that GlobeOne and SocialBoost™ will serve, including anyone who can benefit from a low-cost, mobile-accessed suite of financial services that include:
· International and domestic transfers within the GlobeOne network at no additional GlobeOne cost (other than a max 2% foreign exchange fee)
· A line of credit that establishes a credit profile/history
· Income generation through SocialBoost™
How difficult will it be to tap into the Gen Y lifestyle? What needs to be done to appeal to them?
The banking industry has its work cut out for them to appeal to Gen Y: The traditional banking industry does not meet the needs and expectations of millennials, which are completely different from generations before them. One in five millennials say they’ll never open a bank account and according to Viacom’s Millennial Disruption Index, the nation’s four leading banks are millennials’ least favorite brands.
As a first generation of digital natives, millennials’ affinity for technology helps shape how they do business and make choices. Gen Y is also the demographic that is the most disenfranchised from financial services. That is why GlobeOne uses technology to bridge the growing gap between millennials and the services they need through a digital platform that provides access to essential financial services backed by growing, global network of financial institutions.
Many banks and banking alternatives are already “going mobile”; however, we haven’t yet tapped into this generation’s social consciousness, which is a critical factor in how they conduct their everyday business and with whom they choose to do business. In response to millennials’ expectations that businesses should have a positive social impact, GlobeOne is transforming banking into an activity that has a social purpose.
Another highly effective tool for millennials is a gamification model, which is an inherent part of GlobeOne’s mobile app and allows our members to track their independent performance against their local peers as well as the Global community. This is not only informational but also encourages positive financial habits, as the app will allows users to track their savings and income and watch it build and grow over time.
Q: Can you explain more thoroughly the SocialBoost technology from GlobeOne and the interaction with the GlobeOne Community?
SocialBoost™ is GlobeOne’s patent-pending program that enables members to earn a residual income stream simply by helping build the GlobeOne community. Because GlobeOne mitigates the marketing costs for banks through its crowd-sourced P2P model, Member Banks have agreed to return revenue into the GlobeOne community. Through SocialBoost, GlobeOne’s Member Banks return 50% of interest charges to the GlobeOne community; 25% to the GlobeOne Individual members (based on the people they have directly invited to join GlobeOne and who have become members), and 25% to the global community members. GlobeOne Individual Members can increase their SocialBoost income by growing their personal community. As Individual Members build their personal community, their share of the SocialBoost income grows. SocialBoost creates income flow between developed and developing countries, creating social banking on a global scale. The intention is to create a cycle of long-term financial change that has a cumulative, positive economic impact globally.
Q: What are the projections pertaining to the growth of the GlobeOne community?
GlobeOne is projected to launch in Mexico, the United States and Vietnam soon. We expect to be in 30 countries by 2020, making the GlobeOne community truly global and inclusive.