Product Code: FS0189IA
Also known as Generation Y, millennials are distinct from the surrounding generations based on their unique formative experiences, which include pronounced technological, economic, and social shifts. In the last two decades, millennials have matured in terms of their size, economic strength, and socio-cultural influence.
Many millennials are well into their careers and are ready to invest and use financial advice. Their current and imminent financial commitments - such as paying off tertiary education, and buying their first house or car - will fuel growth in the banking sector for the foreseeable future.
Understanding their lifestyles, goals, and behavior is key given their status as a fast-rising financial services market. The industry must respond with relevant strategies that leverage the shifts in banking behavior and seize the maturing opportunity.
The report "Millennials: Banking the Opportunity", explores the attitudes and behaviors millennials have with regards to their financial services products. It explores the major factors shaping their lifestyles and goals, and what this means for the financial services industry. Products covered in the report range from everyday current accounts to all forms of credit to investments.
- Millennial penetration over-indexes in 14 of 21 financial holdings. This underscores the importance of targeting these consumers with products they value delivered in ways they prefer.
- Millennials are more likely to experience a number of key life events in the coming years. Banks can capitalize on this with targeted products designed to facilitate these events or mitigate the disruption they cause.
- Millennials still make safe and conformist choices about where to bank. They express moderate satisfaction with their product holdings, but there is a real interest in new (particularly digital) product features.
Reasons to buy
- Gain insight into the purchasing path of millennial consumers.
- Identify which financial products have already gained traction with the millennial segment and which are potential growth markets.
- Assess which attitudes and behaviors of millennials truly set them apart from older segments, and which are merely the result of their younger age.
Table of Contents
1. EXECUTIVE SUMMARY
- 1.1. Overview
- 1.2. Key findings
- 1.3. Critical success factors
2. MILLENNIALS ARE A KEY AUDIENCE FOR RETAIL BANKING
- 2.1. Defining the demographic opportunity
- 2.1.1. Millennials were born between 1983 and 1996
- 2.1.2. Millennials have emerged as the largest living generation in many (but not all) nations
- 2.1.3. Millennials are highly urbanized and more diverse than their predecessors
- 2.2. Millennials over-index for the majority of financial products
- 2.2.1. Financial product usage has increased among millennials as the cohort has matured
- 2.2.2. Over 80% of millennials globally hold a current or savings account, making debit cards the primary financial product
- 2.2.3. Over two thirds of millennials own a credit card
- 2.2.4. Lifestage and generational circumstances have prompted a heightened need for loans
- 2.2.5. Millennials have emerged as the most important generation-based mortgage market
- 2.2.6. Under half of millennials have a pension at a time when day-to-day expenses take priority
- 2.2.7. Millennials are important investors in spite of their day-to-day financial challenges
- 2.2.8. A majority of millennials have adopted most insurance products
- 2.3. Millennial lifestyles are characterized by life-defining events
- 2.3.1. Millennials are more likely to be contemplating married life and starting a family
- 2.3.2. Millennials represent the largest group of customers buying a house for the first time
- 2.3.3. The fluid nature of millennials' lifestyles make relocation a desirable and doable option
- 2.3.4. Generation- and lifestage-defining events are shaping millennials' financial goals
- 2.3.5. Despite negative stereotypes, millennials are good at managing money
3. MILLENNIAL ATTITUDES AND ACTIONS WARRANT SPECIAL FOCUS
- 3.1. Millennials express moderate satisfaction with their product holdings
- 3.1.1. Millennials are more likely to be promoters than detractors for their major account holdings
- 3.1.2. Millennials are typically ambivalent towards the mortgages and loans they hold
- 3.1.3. Millennials rate their mobile banking experiences positively
- 3.2. Millennials could be making better use of banking product features
- 3.2.1. A wide range of financial management tools are desired but not widely used
- 3.3. Millennials are pretty typical in their research choices
- 3.3.1. Savings: Millennials want the best rate from a reputable brand offering friction-free banking
- 3.3.2. Mortgages: Millennials are fixated on securing the best rate, ideally from a local bank brand
- 3.3.3. Loans: The influences shaping loan choices are consistent for millennials and the total market
- 3.3.4. Investments: Millennials' motivations are led by a desire for an immediate income stream
- 4.1. Abbreviations and acronym
- 4.2. Methodology
- 4.2.1. GlobalData's 2018 Retail Banking Insight Survey
- 4.3. Secondary sources
- 4.4. Further reading