A VC backing Bloomberg challenger Sentieo explains how fintechs focusing on millennials are missing out on a $14 trillion market

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Ben Cukier, a partner at Centana Growth Partners, said fintechs would be better served looking to work with Baby Boomers and Generation X.

Senior citizens listen to Republican presidential candidate Sen. Marco Rubio as he answers questions during a campaign town hall meeting at the Sun City Hilton Head's Magnolia Hall February 11, 2016 in Okatie, South CarolinaBen Cukier, a partner at venture capital firm Centana Growth Partners, says fintechs should cater their products to Baby Boomers and Generation X, where a majority of US wealth resides.

As Baby boomers retire over the next 10 years they'll pull $14 trillion out of their 401ks, creating a huge market for fintechs to tap into. Fintechs in the wealth management space have done a good job of attracting millennials, but have struggled to make a profit due to their low fees and clients' lack of assets.That's why Ben Cukier, a partner at venture capital firm Centana Growth Partners, believes fintechs would be better suited to shifting their focus.

In recent years, financial startups have specifically marketed products towards millennials with a goal of serving as the younger generation's introduction to investing. In theory, as the wealth of its customers grows, so too would the company.said many digital wealth companies should instead look cater to older generations to try and tap into a $14 trillion market.

"If you look where the money is in the US, over 80% of the money is owned by the Baby Boomers and the Baby Boomers parents, what is known as the Lost Generation," Cukier said at a conference in New York on Wednesday."Those guys are retiring. They are facing life problems that are very different from the millenials. How long are they going to live, which changes how well you spend.

 

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