Millennials have a complicated relationship with financial institutions. They came of age witnessing corporate and Wall Street corruption, a housing crisis, and government “bail outs.” It’s no wonder why Millennials are wary of financial institutions and are looking for alternate ways to bank and manage their money.
Their fast-growing spending power and eagerness to adopt new technology make Millennials the financial force of tomorrow. It’s becoming mission critical for financial institutions to meet the evolving needs of the Millennial generation. Here are some numbers to put some context around their evolving financial needs.
- Over 70% of Millennials would be more excited about a new offering in financial services from Google, Amazon, Apple, PayPal, or Square than from their own nationwide bank.
- Nearly 70% of Millennials are more likely to trust companies that are technology based.
- 41% of Millennials have downloaded a money management app.
- 48% of Millennials are interested in real-time and forward-looking spending analysis.
- 54% of Millennials are concerned about the security of mobile devices for banking purposes.
- 94% of Millennial consumers are active users of online banking.
- 27% of Millennials would consider a branchless digital bank.
- 38% of Millennials use apps and mobile tools to make bill payments.
- 38% of Millennials view their bank statements via a mobile device.
- 43% of Millennials view bills and transaction histories on mobile.
- 24% of Millennials have set up automated recurring payments on mobile.
- 71% of Millennials would rather go to the dentist than listen to what banks say.
- 33% of Millennials believe they won’t need a bank in 5 years.
- 71% of Millennials consider their banking relationship to be transactional rather then relationship-driven.
- 33% of Millennials are open to switching banks within the next 90 days.
- 43% of Millennials list online banking as the first or second most valuable aspect of their day-to-day banking experience; 23% list mobile banking.
- 88% of Millennials have or would deposit a check by snapping a picture of it and 45% would want to pay bills the same way.
- 71% of Millennials would rather go to the dentist than to the bank.
- 29% of Millennials will close their accounts with a bank if there is an incident of fraud.
- Millennials rated banking the #1 industry to be disrupted.
- Over 50% of Millennials didn’t think their banks offer anything different than other banks.
- Customer experience is the top reason for why Millennials would open or close a bank account.
- More than a quarter of Millennials do not use a financial advisor.
- Nearly 40% of Millennials indicate they are likely to use a robo-advisor in the future.
Question: How do you think the banking industry will be disrupted?