Truist Acquires Fintech Long Game in Bid for Younger Customers

  • Truist buys fintech Long Recreation in an energy to “potential proof” its main company and attractiveness to millennials and Gen Zers.
  • Purchasing nimbler fintechs is typically quicker and much less expensive for incumbents than building technological innovation internally and lets them target far more specialised and tricky-to-arrive at demographics.
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The information: Truist bought fintech Long Game for an undisclosed sum as the US lender appears to improve engagement with youthful buyers, per a press launch.

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This is how it performs: A self-proclaimed gamified finance application, Long Sport employs prize-connected personal savings and everyday gaming to incentivize buyers to better deal with their funds and improve their monetary literacy.

Truist programs to relaunch an enhanced version of the app and make it available to over 15 million homes, in accordance to TechCrunch.

The lender said the acquisition would “potential evidence” its core corporations and improve client engagement, significantly among the millennial and Gen Z consumers.

Youth banking booster: Our investigation has found that Gen Zers have a tendency to distrust traditional fiscal establishments (FIs)—for case in point, just 11% of ladies and 19% of gentlemen have sought fiscal tips from a bank or credit score-union affiliate. But almost 50 percent (47%) purpose to improve their credit rating scores and 46% want to build and preserve to a budget, according to Marcus.

Truist can use the Long Recreation app to better cater to this demographic and shift absent from the stuffy, institutional image that conventional banking companies may perhaps maintain in their minds. Cellular financial equipment and the informal match-like strategy integrated by Extensive Match can help with this.

Other FIs have also aimed to shape a new impression to charm to young buyers. This includes Goldman Sachs, which rebranded its Marcus direct lender to help develop shopper have confidence in inside of the very same more youthful demographic.

The large takeaway: Innovative fintechs can aid banking companies and set up FIs to catch the attention of new and more youthful clients and gain from Gen Z’s above $360 billion paying out ability. Younger customers will be far more drawn to fintechs’ software-like apps than fewer tech-savvy older generations and will be much more familiar with the gamified solution to personalized finance which Truist is embracing.

Acquiring nimbler fintechs is frequently faster and cheaper for incumbents than creating know-how internally and lets them target more specialized and tricky-to-attain demographics. Fintechs can, in switch, advantage from banks’ broader ecosystems and broad methods to scale. Legacy banks have understood that what Gen Z and millenials want is incredibly different from what their parents’ generation wants—and they are adapting appropriately.

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