A recent study has provided several interesting insights into how Millennials feel about banking.
The millennial generation, which consists of people born between 1980 and 2000 (roughly), is the largest generation in American history. It is also the most ethnically diverse, and the highest educated.
Here’s a snapshot of millennials:
- There are almost 80 million millennials in the U.S. (Pew Research)
- 61% of millennials attended college, and 47% of those aged 25-34 have a college degree (The White House)
- 42% identify with a race or ethnicity other than non-Hispanic white (The White House)
- Millennials are waiting longer to get married and have their first child than any previous generation (NPR)
- They are extremely tech savvy
What does all this mean? That millennials are large and in charge, basically. They comprise a third of the U.S. workforce, and they’re going to be around for a while, seeing as the oldest Millennial today is 36. So, how millennials like their banking served up matters.
To better understand how they like their banking, Independent Community Bankers of America, a trade group for community banks, conducted an online survey of 1,008 American millennials.
Here’s what they found:
Most millennials like local institutions
54% say they prefer to work with locally owned and operated banks to handle their financial needs, and 46% say that a locally owned banking institution is important to them.
They don’t like being treated like a number
“Eyes up here, pal,” is what the average Millennial wants to say to a big bank that treats him or her like a potential sale, rather than a human being. According to the study, 55% of all Americans believe that banks treat them like a number. The generation that most strongly felt that banks treat them like a number? Millennials (58%).
Millennials think mobile first
74% of all Millennials surveyed said, “Mobile banking is very important to me.” This was the highest of any generation surveyed and 76% greater than the Baby Boomer.
They want a relationship with their financial institution
Millennials aren’t without contradictions. They prefer mobile banking, and yet, 64% of all Millennials surveyed said developing a relationship with their banks or financial institutions is important.
Then again, this might make some sense. Millennials are tech-savvy (they’re the savviest of all generations) and many see digital communication, e.g. email, Facebook messages, texting, tweeting, as appropriate channels for developing and maintaining personal relationships.
Millennials admit they need to know more about their finances
70% said they wished they had more knowledge and skills when it comes to banking and other financial matters.
They never have cash
Millennials prefer to travel light. The study found that only 23% carry more than $5 cash everyday.
View the full ICAB study here (PDF).
Are you a millennial? How do you feel about banking? Do you prefer banking at a local institution? Do you do most of your banking online? I’d love to know your thoughts, so please share them in the comments section below.
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