Tech-savvy Millennials who want things done quickly and conveniently might face some setbacks when it comes to investing their savings. And investing in conventional asset classes in the market, such as stock and bonds, requires one to jump through several hoops like filling in forms and choosing a brokerage firm, before they start investing.
Furthermore, attractive stocks that generate substantial and stable dividends, require a large upfront cost and a minimum lot size, making investing even more out-of-reach to Millennials. While it takes less than five minutes to open a bank account, savings interest rates are way too low to be considered a viable long-term investment.
The virtual currency craze of the last two years might have turned buying bitcoin and other similar currencies into a speculative activity, not quite geared towards an investment with frequent and steady dividends. What the rise of virtual currency demonstrates, though, is how easy it is to buy virtual currencies. Blockchain enables instantaneous and secure transactions online. A simple user interface on an app makes buying or selling digital currency very convenient.
There is also no minimum amount for investment, as each currency was broken down into a fraction of the original cost, so anybody, regardless of their financial background could own a piece of Bitcoin or Ethereum.
The demand for a straightforward and affordable way to invest is clearly present. Ommer leverages this aspect, but instead of volatile digital currencies, wants to make conventional asset classes more accessible to Millennials. Millennials will be able to buy into prudent investments and get familiarised with financial products, with just a few clicks of an app, and with as little as $10 in the bank.
With a much lower barrier of entry, users can invest more confidently. This is particularly important for Millennials, most of whom are investing in traditional asset classes for the first time.