Eight Illuminating Data Points on Millennials and Banking
May 12, 2016 3:33 PM
Banks have a hard time figuring out millennials, those born between the early 1980s and 2000. Many millennials don't remember a world without the Internet, plenty entered adulthood during the thick of the financial crisis and the generation is broadly considered one willing to vote with its feet. Several firms have tried to demystify millennials for bankers. The following is a look at some of the data.
They Don't See a Future for Banks
A third of millennials say they won't need a bank in the future, according to The Millennial Disruption Index, a survey conducted by Scratch, a unit of Viacom.
But Most of Them Use Banks Today
A survey by CCG Catalyst found that nearly 90% have a relationship with a bank or a credit union. To boot, only 4% have an account with an online-only bank.
They're the Antsiest Bank Customers
Banks have historically counted on consumers' laziness to keep them from switching banks, but millennials are flight risks. An iQuantifi survey found that 36% said they are likely or very likely to switch their primary bank in the next 12 months. Also, 31% say they've signed up for a product not from their primary bank in the last year.
Especially the Well-to-Do Ones
The same iQuantifi survey found that the flee factor is higher when adjusted for top higher earners. Of those millennials who make more than $75,000 a year, 56% said are at least likely to move on.
They Can Be Skittish About Credit
A quarter of millennials say building a great credit score would be the scariest grownup milestone for them to take on right now, according to a recent survey about credit confidence conducted by Capital One. Moreover, nearly half say the most important reason for having a credit card is to establish good credit.
They Appreciate a Good App
Banks' digital offerings are not judged against other banks' offering they are judged against all digital experiences. That's particularly true for millennials: 92% would make a banking choice based on digital services, according to Morphis.
They're Migrating to Mobile, Fast
It might seem like everyone loves their mobile phone, but millennials do seem to have a speedier adoption of mobile banking. Twenty-two percent of millennials between the ages of 18 and 32 signed up for mobile bank apps in the past 12 months, according to a 2015 survey by Accenture. That compared to 13% of 33 to 54 year olds and 6% of those 55 and older.
They Aspire to Financial Independence
Remember all those stories about the boomerang millennials? The ones who moved home (or never left) and expected their parents to foot the bill? Not all millennials want that. The Shullman Research Center found that six out of 10 millennials between 18 and 24 years old say that having enough money for daily living expenses is a financial goal.
