Millennials present apparent contradictions to financial services marketers:Â they’re underbanked but increasingly using financial institutions for non-account purposes; and while open to non-traditional brands, they choose the big 3 at a greater rate than the population at-large. In a new study, “Marketing Financial Services to Millennials”, MarketingCharts explores the over-arching financial themes faced by America’s youth, as well as the opportunities and challenges inherent in marketing to this generation.
Comprising a majority of new primary banking relationships in the US, Millennials as a generation cannot be ignored. (Not that there seems to be any potential for that to happen!)Â With 111 slides containing 81 charts and tables as well as a series of insights and recommendations, the study provides an impressive array of valuable data and takeaways for marketers. Topics covered range from Millennials’ use of banking products and instruments to their attitudes to finances, engagement with institutions, decision influencers, visions for the financial sector’s future, and key search terms, among others.
Segmented into 9 chapters, highlights from the study reveal that:
- Despite below-average incomes and relatively low credit scores, Millennials are generally optimistic about their finances and home ownership prospects;
- Young adults are concerned about their money management and spending practices, and these are important influences in their decisions surrounding credit card ownership;
- Millennials lack financial guidance, with college students in particular wanting to learn more about budgeting and savings strategies;
- Convenience and the customer experience are important to today’s youth, who want to feel rewarded for their loyalty and would switch institutions for better rewards programs;
- Millennials are advice seekers and givers, relatively heavily influenced by word-of-mouth but harboring some distrust of banks;
- Terms such as “calculator” and “payment” are key to Millennials’ search behavior; and
- Affluent Millennials show above-average loyalty and trust in their institutions, but are also the most open to non-traditional brands and advanced digital offerings.
Key data contained in the report include:
- Use of financial institutions by unbanked Millennials;
- Mobile payment methods used by college students;
- What Millennials want and value most from financial institutions;
- Millennials use of products from fintech firms and their trust in those firms;
- Why Millennials choose their primary bank, and why they would switch financial brands; and
- The top-indexing financial search terms among Millennials.
Beyond the highlights and insights provided, the study also analyzes the unique characteristics of various Millennial segments – including affluents and college students – from which it derives a series of recommendations for messaging these various groups.
The study is available for purchase here.