WILL MILLENNIALS USHER IN A NEW WORLD ORDER IN BANKING?

Millennials are receptive to a wide variety of non-traditional organizations as financial providers, according to a recent survey by SYNERGISTICS Research entitled, Millennials: Financial Insights.  Millennial respondents indicated their current usage or likelihood of using a number of well-known but nontraditional financial providers to meet their banking or financial needs.  Current financial experience with these organizations has been limited, but almost two-thirds of Millennials do in fact have a PayPal account. In terms of organizations they are likely to use for banking or financial services, the widest response is to Amazon and Google – each cited by about four in ten Millennials.  One-third identify PayPal; Apple is cited by three in ten.  One-fourth to one-fifth are likely to do business with a number of other organizations.

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Genie M Driskill, COO of SYNERGISTICS, stated, “It goes without saying that Millennials are one of the most talked about segments in financial services marketing today.  This segment is large – with an estimated 80 million consumers – and has been labeled by some as the most influential generation ever.  According to findings from our survey, it is clear that Millennials are not necessarily wed to the traditional banking and financial system.  Millennials are not going to abandon traditional financial providers; however, they will look at all types of organizations including non-traditional providers to meet their financial needs.  Traditional providers are faced with a challenge to show how their products and services have value and utility in this increasingly competitive environment.  Aspects such as ease of access, reliable technology, trust in the ability to securely manage personal data, and competitive pricing may all be key.”

These are among the findings from SYNERGISTICS study, Millennials: Financial Insights, featuring 1,000 Internet interviews comprised of 700 interviews with consumers ages 18 to 34, 150 with those ages 35 to 50, and 150 with those ages 51 to 69.  This study examines the financial services profile of Millennials (Gen Y).  Their attitudes and involvement with depository accounts, investments, and financial providers are explored.