They were born in a world where the Internet was already their daily normal, where moving from one job to another was what you do, where going in debt for studies and house was just another necessary step in life, and where automation instead of human interaction provides more efficiency.
They are the “Millennials” and, for the past 5 years, they are more than ever in the spotlight for many industries, researchers and innovators. Why? Because they are becoming a strong force in today’s economy and their characteristics, expectations and behaviors influence how markets grow.
Who are these millennials?
Born between 1980 and 2000, millennials are considered to be the largest generation of all times. Known also as "The Me Me Me Generation" or “Generation Y”, they are today’s main target for several kinds of industries - including banking. Researchers and analysts describe them as:
- Narcissistic and lazy,
- With most interest in “me time”,
- With less interest in social responsibilities,
- Receptive to innovation,
- Confident and self-expressive.
What do researchers say about millennials?
A lot of research has been conducted during the past 5 years and the results revealed interesting conclusions that can be easily turned into valuable insight.
We’ve selected some of the most relevant ones in order to highlight millennials’ perceptions and expectations regarding banks’ offers and trends:
- The 4 top banks are among the 10 least-chosen brands;
- 71% of millennials would rather visit the dentist than listen to their banks. [source: study Scratch mentioned by Forbes ]
- Millennials are checking their financial information monthly on their mobile device eight and a half times more often than other generations;
- Over 50% of millennials are already using or considering banking applications like PayPal or Venmo;
- They are three times more likely to open a new account with their phone;
- More than one-quarter (27%) of Millennials are completely reliant on a mobile banking apps.
[sources: FICO report, ABA infographic, Special Report Sales Force]
- 57% say they would finance an emergency with their credit card;
- 61% say that mobile has made tracking and spending their money better.
- 50% of Italian millennials send International payments, with 20% paying with mobile;
- 70% of German millennials pay for groceries with cash vs. 61% by card;
- 1 of 11 British millennials are now paying for car parking using mobile payments;
- 42% of British and German millennials agree that they would use eye scans to verify payments;
- More than half 42% of millennials in four countries agreed that they would like to be able to make instant payments. [source: VOCALINK]
- They have a great interest in cryptocurrencies. Facilitation of mobile cryptocurrency investments appeal to millennials as a means of mitigating their loan debts: 30% of millennials say they would rather invest $1,000 in Bitcoin than $1,000 in government bonds or stocks;
- Their top financial priorities are: 43 % of paying down deb and 38% saving for the future;
- 53% don’t think that their bank offers anything unique.
[source: Blockchain Capital, ABA infographic]
What do millennials want from their banks?
- Less time-consuming services and more mobile features;
- Personalized services able to respond properly to their specific needs and expectations;
- Personalized offers in relation with their plans and financial situation;
- Trends-adapted and innovative services;
- Real-time communication on their own terms;
- Their banks to advise them on how much to save and budget;
- Smart and easy control over their accounts;
- The ability to bank how they want and where they want;
- Human connection only when they need it;
- Multichannel & flexible communication (social media, email, etc).