Dear Reader,

What did I tell you?

Australia’s banks are getting ‘Craigslisted’.

‘The engine room of the big four’s combined annual profit of $30 billion is at risk of being picked off by a combination of fickle consumers and a category killer like Uber according to a panel of experts,’ reports The Australian Financial Review.

The driver of this change?

The next generation of banking customers — the so-called millennials and Gen Z age groups.

PwC director Jim Christodouleas told the FINSIA Conference in Melbourne recently:

‘You are looking at a whole generation who has fundamentally changed their relationship with a relatively small corner of the financial services market. The lessons for mortgage providers is extremely important.’

Don’t underestimate how powerful this group of people can be in driving wholesale change in entire industries.

Take Uber, for example…

Millennials and Gen Z customers embraced the idea of ride-sharing apps like Uber faster than any other demographic.

And turned the cosy taxi monopoly on its head.

Or how about Airbnb?

Rather than complain about the high cost of hotels or the dingy deals offered by hostels, this savvy generation discovered and supported a completely new way of travelling.

That’s the thing about this younger generation.

They cop a lot of flak sometimes, but I think they’re actually pretty ingenious.

Rather than ‘sticking it to the man’ and protesting the status quo like their parents did, they simply find ways to go around the system.

What’s often mistaken for laziness or entitlement is simply a subtle understanding of the use of soft power.

And it’s this power that is about to hit the banking industry.

Back the stocks powered — and often RUN — by millennials and you’re backing the banking superstars of tomorrow.

I showcase three such stocks here.

Regards,

Ryan Dinse, Editor, Exponential Stock Investor