-New financial investment methods diversely emerging mainly among millennials interested in small-scale asset management
-Popular options include asset management 'Jaetech platforms' and 'Jjantech' that accumulate small amounts to secure profits
Last year, according to a survey conducted by Rich Planet, a fintech company in the insurance sector, targeting 500 millennials, about 43% of people in their 20s?roughly half of that age group?reported using more than 30% of their monthly income for savings and other financial investments. While young people are often said to prioritize ‘YOLO’ (You Only Live Once) consumption that enjoys the present life, they actually showed a strong interest in financial planning for the future.
As the ultra-low interest rate era continues and fintech advances, investment trends keep evolving, leading to the emergence of various new investment methods targeting the 2030 generation, who are highly interested in financial investments.
Youth with some financial and investment knowledge use ‘online financial investment platforms’ that manage assets for them, while ‘Jjantech’ (a portmanteau of jjada [frugal] + jaetech [financial investment]), which involves saving even small amounts to secure better returns, is also gaining popularity. Additionally, unique forms of financial investment such as ‘music copyright investment’ and ‘sneaker investment’ have appeared.
Winkstone, a financial investment platform startup, is gaining attention among young people seeking alternative investment destinations due to low interest rates at commercial banks, boasting a 0% delinquency rate and an average high return of 8.92%.
Winkstone lowers the barriers for young people, who have been excluded from asset management services, by providing a system that allows easy investment with small amounts and stable returns. Through this, young customers can invest in financial assets easily without complicated investment knowledge and earn higher returns than those offered by commercial banks.
Recently, Winkstone is preparing to launch a service aimed at establishing itself as an investment platform that significantly reduces customers’ involvement, allowing funds to grow automatically without extra attention. The investment solution ‘aMAP™’ is an investment product composed of a combination of various types of bonds. Customers only need to input the investment amount and period, and experts use fintech-based algorithms to create an optimal portfolio, propose target returns, and manage the investment to achieve the target returns without complicated or difficult processes.
Jjantech, aimed at young people with limited income and investment capacity, has recently become a hot topic. Jjantech is a newly coined term combining ‘jjandoli’ (frugal person) and ‘jaetech’ (financial investment), referring to an investment trend that reduces unnecessary consumption and saves even small amounts.
One representative jjantech product is ‘Hanadeo Jeokgeum,’ launched by Hana Bank in February, which recorded a remarkable 1.3 million subscribers within just three days. It offers a savings interest rate in the 5% range, which is rare in the existing financial sector, but since deposits are limited to 300,000 KRW per month, the actual interest income is less than 100,000 KRW. This aligned perfectly with the jjantech trend of securing even small but better returns, causing a frenzy both online and offline for three consecutive days.
Other popular jjantech products include Kakao Bank’s ‘Piggy Bank’ service and Welcome Savings Bank’s ‘Welbang Spare Change Automatic Savings,’ which automatically transfer spare change under 1,000 KRW within accounts to savings. As of the end of January, Kakao Bank’s Piggy Bank service had a total of 1.47 million accounts using it.
Unique financial investments based on differentiated products from traditional financial investments are also attracting the 2030 generation. ‘Musicoin’ is the world’s first music copyright royalty sharing platform, where copyrights are divided into small shares like stocks and can be bought and sold. Investors purchase shares of copyright royalties at their desired price and receive stable and steady monthly royalty income. Of the increased amount from auctions, 50% goes to the creators, and the rest is used to support the K-pop ecosystem, contributing to a virtuous cycle in the music ecosystem.
‘Sneakertech’ (sneakers + financial investment), which involves buying limited-edition sneakers, is also one of the notable new financial investment methods. Limited editions made in collaboration with special figures or brands, as well as vintage products that have been discontinued but remain in demand, tend to increase in price over time.
A representative from Seoul Auction Blue, an online art brokerage firm, stated, "87% of our subscribers are aged 18 to 34, belonging to the millennial and Z generations," adding, "As sneakers emerge as collectible items with value, young people are entering the investment market."
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