Table of Contents
Executive Summary
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- Who are the Millennials?
- How they feel about financial institutions
- The Millennial consumer
- Account ownership
- Financial challenges and priorities
- Do they want help?
- How Millennials feel about money
- Unsure about credit – and their futures
- What we think
Issues and Insights
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- Financial literacy: A huge problem
- Issues
- Implications
- So how do they really feel about money?
- Issues
- Implications
- Are advisory services for Millennials an opportunity for banks?
- Issues
- Implications
Trend Application
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- Inspire Trend: Help Me Help Myself
- Inspire Trend: FSTR HYPR
- Inspire Trend: The Unfairer Sex
The Size of the Millennial Market
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- Key points
- Millennials are one-quarter of the population
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- Figure 1: US population, by generation share, 2015
- Millennial population continues to grow
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- Figure 2: US population, by generation, 2010-20
Socioeconomic Profile of Millennials
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- Key points
- A racially and ethnically diverse group
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- Figure 3: US population, by race/Hispanic origin, 2015
- Millennials are delaying marriage
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- Figure 4: Percentage of those married at age 18-32, by generation
- Millennials are living at home
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- Figure 5: Percentage of Millennials living at home (2012)
- Millennials’ median household income
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- Figure 6: US median household income, by generation of householder, 2013
Innovations and Innovators
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- Key points
- Automated investing services
Marketing Strategies
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- Overview
- Reaching Millennials
- Incentives work
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- Figure 7: People’s United Bank’s gift card direct mail ad, 2015
- Figure 8: TD Bank incentive checking account direct mail ad, 2015
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- Figure 9: Ally Bank IRA online ad, 2015
- Mobile banking
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- Figure 10: Wells fargo mobile text banking service email, 2015
- Figure 11: Synovus Bank P2P email ad, 2015
- Long-term planning
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- Figure 12: Fidelity IRA print ad, 2015
Account Ownership
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- Key points
- Most accounts are in own name
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- Figure 13: Ownership of financial products/accounts, December 2014
- One bank, or many?
- Millennial women are behind
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- Figure 14: Ownership of financial products/accounts – In my own name, by gender, December 2014
- Millennial parents are strapped for time
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- Figure 15: Ownership of financial products/accounts – In my own name, by parental status, age of children, December 2014
- So…who has online accounts?
- Key driver analysis – Methodology
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- Figure 16: Key drivers of online only banking, December 2014
Communication Preferences
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- Key points
- Frequency
- Less communication is better than more
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- Figure 17: Preference of communication frequency, December 2014
- Frequent communication is not important to young women
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- Figure 18: Preference of communication frequency, by gender and age, December 2014
- Mail and email serve different purposes
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- Figure 19: Preference of communication frequency, by communication channel, December 2014*
- Channel
- Most want to be reached via email
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- Figure 20: Communication channel preference, December 2014
- Parents have different preferences
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- Figure 21: Communication channel preference, by parental status, December 2014
Major Financial Challenges and Priorities
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- Key points
- Current financial challenges
- Saving money and paying bills are the biggest challenges
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- Figure 22: Top savings and paying priorities, December 2014
- Marriage changes priorities…
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- Figure 23: Top three major financial challenges, by marital status, December 2014
- As does having children in the household
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- Figure 24: Top three major financial challenges, by presence of children in household, December 2014
- Upcoming financial priorities
- Current challenges remain future priorities
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- Figure 25: Most important financial priorities in next 12 months, December 2014
- Saving is most important to highest earners
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- Figure 26: Most important financial priorities in next 12 months, by household income, December 2014
- Parents prioritize paying day-to-day bills
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- Figure 27: Most important financial priorities in next 12 months, by parental status, December 2014
Use of Financial Advice
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- Key points
- Advice is not popular among Millennials
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- Figure 28: Professional financial advice received, December 2014
- More Millennials need advice about saving
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- Figure 29: Professional financial advice received, by major financial challenges, December 2014
- Men are more likely to seek advice
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- Figure 30: Professional financial advice received, by gender, December 2014
- Gender differences disappear with age
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- Figure 31: Professional financial advice received, by gender and age, December 2014
- Bank advisers are most used by Millennials at all income levels
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- Figure 32: Professional financial advice received, by household income, December 2014
- Millennials with families want advice
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- Figure 33: Professional financial advice received, by marital and parental status, December 2014
- Bank advisers are preferred
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- Figure 34: Type of financial adviser preferred, December 2014
Attitudes toward Finance and Money
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- Key points
- Millennials: Money does not buy happiness
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- Figure 35: Attitude toward finance and money – Any agreement, December 2014
- How Millennials feel about money
- How Millennials feel about credit
- Older Millennials have a changed perspective
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- Figure 36: Attitude toward finance and money – Any agreement, by age, December 2014
- Hispanic Millennials are focused on saving
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- Figure 37: Attitude toward finance and money – Any agreement, by Hispanic origin, December 2014
- Mothers and fathers have different outlooks
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- Figure 38: Attitude toward finance and money – Any agreement, by parental status, December 2014
Source of Financial Information
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- Key points
- Family is most important source of financial information
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- Figure 39: Source of financial information, December 2014
- How Millennials get information
- Social media use
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- Figure 40: Source of financial information, by gender and age, December 2014
- Parents more likely to seek out information
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- Figure 41: Source of financial information, by parental status, December 2014
Cluster Methodology
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- Financial Free Spirits
- Demographics
- Characteristics
- Opportunity
- Interested Conservatives
- Demographics
- Characteristics
- Opportunity
- Financially Disinteresteds
- Demographics
- Characteristics
- Opportunity
- Cluster demographic tables
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- Figure 42: Target groups, by demographics, December 2014
- Cluster characteristic tables
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- Figure 43: Target groups, by target clusters, December 2014
- In own name
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- Figure 44: Ownership of financial products/accounts – In my own name, by target clusters, December 2014
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- Figure 45: Ownership of financial products/accounts – In my own name, by target clusters, December 2014
- Joint account with parent(s) guardian
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- Figure 46: Ownership of financial products/accounts – Joint account with my parent(s)/guardian, by target clusters, December 2014
- Figure 47: Ownership of financial products/accounts – Joint account with my parent(s)/guardian, by target clusters, December 2014
- Joint account with spouse/partner
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- Figure 48: Ownership of financial products/accounts – Joint account with my spouse/partner, by target clusters, December 2014
- Figure 49: Ownership of financial products/accounts – Joint account with my parent(s)/guardian, by target clusters, December 2014
- Do not have
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- Figure 50: Ownership of financial products/accounts – Do not have, by target clusters, December 2014
- Figure 51: Ownership of financial products/accounts – Do not have, by target clusters, December 2014
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- Figure 52: Preference of communication frequency, by target clusters, December 2014
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- Figure 53: Preference of communication frequency, by target clusters, December 2014
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- Figure 54: Preference of communication channel, by target clusters, December 2014
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- Figure 55: Major financial challenges, by target clusters, December 2014
- Figure 56: Major financial challenges, by target clusters, December 2014
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- Figure 57: Major financial challenges, by target clusters, December 2014
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- Figure 58: Most important financial priorities, by target clusters, December 2014
- Figure 59: Most important financial priorities, by target clusters, December 2014
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- Figure 60: Most important financial priorities, by target clusters, December 2014
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- Figure 61: Professional financial advice received, by target clusters, December 2014
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- Figure 62: Attitude toward finance and money – Any agreement, by target clusters, December 2014
- Figure 63: Attitude toward finance and money – Any agreement, by target clusters, December 2014
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- Figure 64: Source of financial information, by target clusters, December 2014
- Figure 65: Source of financial information, by target clusters, December 2014
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- Figure 66: Source of financial information, by target clusters, December 2014
Appendix – Other Useful Consumer Tables
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- Account ownership
- In own name
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- Figure 67: Ownership of financial products/accounts – In my own name, by demographics, December 2014
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- Figure 68: Ownership of financial products/accounts – In my own name, by demographics, December 2014
- Joint account with spouse/partner
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- Figure 69: Ownership of financial products/accounts – Joint account with my spouse/partner, by age, December 2014
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- Figure 70: Ownership of financial products/accounts – Joint account with my spouse/partner, by age, December 2014
- Do not have
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- Figure 71: Ownership of financial products/accounts – I do not have this, by gender, December 2014
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- Figure 72: Ownership of financial products/accounts – I do not have this, by gender, December 2014
- Communication preferences
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- Figure 73: Preference of communication frequency, by demographics, December 2014
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- Figure 74: Preference of communication frequency, by demographics, December 2014
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- Figure 75: Preference of communication frequency, by preference of communication channel, December 2014
- Major financial challenges
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- Figure 76: Major financial challenges, December 2014
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- Figure 77: Major financial challenges, by demographics, December 2014
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- Figure 78: Major financial challenges, by demographics, December 2014
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- Figure 79: Major financial challenges, by demographics, December 2014
- Most important financial priorities
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- Figure 80: Most important financial priorities, by demographics, December 2014
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- Figure 81: Most important financial priorities, by demographics, December 2014
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- Figure 82: Most important financial priorities, by demographics, December 2014
- Professional financial advice received
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- Figure 83: Professional financial advice received, by demographics, December 2014
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- Figure 84: Professional financial advice received, by ownership of financial products/accounts – Investment account, December 2014
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- Figure 85: Professional financial advice received, by major financial challenges, December 2014
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- Figure 86: Professional financial advice received, by major financial challenges, December 2014
- Attitude toward finance and money
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- Figure 87: Attitude toward finance and money, December 2014
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- Figure 88: Attitude toward finance and money – Any agreement, by demographics, December 2014
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- Figure 89: Attitude toward finance and money – Any agreement, by demographics, December 2014
- Source of financial information
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- Figure 90: Source of financial information, by demographics, December 2014
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- Figure 91: Source of financial information, by demographics, December 2014
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- Figure 92: Source of financial information, by demographics, December 2014
Appendix – Key Driver Analysis
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- Interpretation of results
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- Figure 93: Key drivers of online only banking – Challenges, December 2014
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- Figure 94: Key drivers of online only banking – Priorities, December 2014
Appendix – Trade Associations
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