Everybody’s talking about Millennials. Ask any marketing professional, and you’ll be told Millennials are
Of course, banks have always been more or less available to young adults; they just weren’t a very lucrative demographic. There were plenty of more profitable accounts to service, and it wasn’t that easy to change banks. Now, that’s changed. The 80-million-strong Millennials have money to spend and influence with their peers and others.
Millennials are tech-smart
Compared with past generations, Millennials are more educated, politically independent, convenience-driven, environmentally aware and socially connected. And they’re tech-smart. No surprise – their world has been shaped by the Internet, smartphones and instant access to … everything.
Millennials’ connection to technology is what many of them believe makes their generation unique. A White House Council of Economic Advisors’ 2014 study says, “their unprecedented enthusiasm for technology has the potential to bring change to traditional economic institutions.” Further, the report notes, this includes raising capital for startups from online crowdfunding sources, instead of traditional sources like banks to grow their businesses.
Still, Millennials represent $200 billion in buying power and they are open to financial options. Banks that meet them on their own technology turf have new opportunities to respond to their felt needs – such as financial planning.
Most Millennials rely on their parents for financial advice, but there’s room for banks to reach out, especially online. Virtual financial advisor iQuantifi noted in its new Millennials Mindset Survey that while nearly three-fourths of this generation sets financial goals, only a fifth of them have a plan to achieve those goals. Some 60 percent say increasing their overall savings is a major objective in the next year, and 76 percent say they would consider turning to a free app or online tool for help. Most know they need advice; their question is where to go where they will be respected – not patronized.
But they’re also tech-dumb
Even after growing up with the Internet since grade school, Millennials also could use some financial education about taking data protection seriously. Given the large volumes of data they produce, you’d think Millennials would know the importance of keeping personal information private. Instead, they tend to place convenience or personal fulfillment ahead of safety. And for that, they’ve earned the nickname “Generation Leaky.”
A USC Annenberg Center for the Digital Future and Bovitz Inc. survey suggests that 70 percent of Milennials say no one should have access to their data, yet 25 percent will trade it away for more relevant advertising; 56 percent will share their location for coupons or deals; and 51 percent say they’ll share info with companies if they get something in return. Security professional Chris Rouland said it well, blogging on