Gen Z gets a lot of flack over the state of their finances, often unfairly. The truth, however, is that Gen Z is huge, making up more than 1/4th of the entire workforce by 2025. And with that comes significant economic power and influence. Like previous generations, though, members of Gen Z rarely learned about personal finance in school.
That’s where this week’s guest on the Fintech Growth Talk podcast comes in. As the CEO and co-founder of Mooch, Richard Velasquez sees it as his Fintech’s mission to empower people—particularly Gen Zers—to have a better relationship with personal finance.
Not only does Mooch accomplish this digitally, enabling partners (their term for users) to more easily manage their finances, but it also rewards them for meeting their budgeting goals each month. “It’s a bonus for being a good budgeter,” says Velasquez.
The good news for partners who come to Mooch without any budgeting knowledge or experience is that the app will also guide them through the budgeting process, recommending amounts to set aside for things like an emergency fund, savings funds, etc. It also offers tracking features to help partners stay focused on their budgeting goals.
The bonus Mooch pays partners helps, of course, and the firm is looking for new and unique vehicles that will expand how and where bonuses are paid out. For example, some partners are interested in investing their bonuses, and Mooch is exploring investment vehicles. Others, though, want physical gifts like concert tickets. While these features are still being worked on, Velasquez believes that the key to their success will be to provide things that add value to customers.
For Mooch, it’s not only about helping partners save, but to build their financial house. It’s also about helping to grow their financial literacy by making things simple and easy to understand. Eventually, says Velasquez, improving financial literacy builds confidence in their partners’ budgets, and ultimately in their own money management skills.
“Simply handing them the tools to succeed is not enough,” says Velasquez. “You really have to hold their hand through the whole process and bring them to the financial success story.”
Listen to our full interview with Richard Velasquez here: