Why Many People Prefer Alternative Financial Solutions TodayFast Action Finance
The news lately has been showing that more and more people of the younger generation are starting to look into financial products that were unconventional with the previous generations. Such financial products include having prepaid cards, auto title loans, payday loans, signature loans and things like check cashing. Experts in the financial sector are starting to think that there is a trend with this habit and the market. They believe that the economic market is being affected by two main factors which are associated with this growing habit- one would be the portfolio of the younger generation who indulge in the newer financial products and the other would be the advantages and versatility of these newer financial products in manoeuvring the market.
Fact and figures
Nearly forty five percent of those from the Generation Y have chosen their newer financial products as an alternative compared to other conventional types of financial help, like institutional loans. This is because they tend to find these new range of financial products more convenient to use and also more trustworthy in their own opinion. This is supported by the numbers attained from the studies done in this matter.
Although such a huge proportion of the Generation Y choose to use these newer financial products, not all of them turn out to be happy with it. Although 83 percent have assured a positive response towards these products, one in five people still are unhappy with the new methods of financial help. But out of those who are positive about these methods, they believe that such a help is very important as a source of financial income during their times of need and emergency.
Insights from the portfolio of a millennial
Many experts think that the growing market of newer financial products compared to the older methods is driven by the opinion of the Generation Y that they want things to be done in a quicker way. The newer financial help methods please them in the way that they are instant to attain. But sometimes other things matter much more than time.
The newer generation, of all people, have witnessed the major economic crashes in the United States of America like the Great Recession and many others that involved other countries as well. These events have probably changed their ideas of how money should be handled and might have been a triggering factor to why they entertain the newer and quicker financial help methods so much.
A research done by the UBS Investor Watch mentions that thirty four percent of the younger generation people called themselves more conservative when it came to money matters. They claimed to save at least half of their total wealth in the form of cash. At the same time, two thirds of the younger generation was found to be negative about their forecast on the stocks and shares because of the ever changing economic balance.
More than 80% were also found to think that the economic status is going to head downhill soon. The way they are more closed in terms of their ideas and prediction and their general negativity towards the economy might have been a good reason why they choose to indulge in these alternative financial products.
The allure of benefits and other alternatives
Other than the opinion of young people on the topic of money and finances, there is also another reason why these people end up choosing alternative financial products. This is because of the numerous perks and advantages provided by these alternative financial products which act as a good bait to attract more and more people to use them.
Such alternative and newer financial methods have fees which are more transparent, easier to understand and easier to accept compared to conventional financial help like bank loans. When people choose to go on alternative financial methods, they end up understanding better what exactly they are paying for. They are also easily eligible to take up these financial help, so there is not much of a restriction of which group amongst them is better able to attain this help.
Let us take for example, signature loans. When someone wants to take up a signature loan, the application can be done over the internet or by getting over the phone with the institution. The company offering the loan has people to get this application process done within 15 minutes or even less sometimes because the eligibility requirements and information needed are very limited. It takes less than half an hour for you to end up with money – it is that easy and that fast to get some money rolling in when you are in need; so that is definitely going to be a great selling point for young people.
Such alternative financial products come hand in hand with the way young people manage their money, so it plays out well and more convenient for them to use such methods. They also provide a lot of benefits to young people to keep them lured in to these methods of financial help.