Perhaps the greatest distinguishing characteristic of today’s British Millennials is their tech-savviness. Having grown up with technology, Millennials are completely comfortable in the digital realm, which ultimately defines their behaviour and expectations in the financial services space.

Millennials pose an interesting challenge for financial services companies. Many came of financial age during the recession and have seen their families struggle with their finances, or have experienced economic hardship first-hand. As a result, they are typically more cautious with their money. Millennials show an aversion to unsecured debt such as credit cards or personal loans and a strong desire to save, revealing a degree of conservatism in terms of their personal finances. At the same time, though, student loans and the rising cost of housing means that many Millennials have to manage levels of debt that would have seemed extreme to their parents. The combination of these factors means that they are highly aware of the need to take control of their own financial future from an early age, and that many feel they will be worse off compared to previous generations.

This report looks at the socioeconomic profile of British Millennials (born between 1980 and 1999). It examines their life goals and how their reasons for saving or investing reflect these goals. The report also investigates how they like to bank, and the way in which they research financial services products, as well as their financial concerns and interest in the market. Finally, it discusses how this generation views various non-traditional players in the financial services space such as global technology companies and social networks.

Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland.

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