GlobalData’s Millennials: Banking the Opportunity report highlights that in the last two decades, millennials have matured in terms of their size, economic strength, and socio-cultural influence. Many millennials are well into their careers and are ready to invest and use financial advice. Their current and imminent financial commitments – such as paying off tertiary education, and buying their first house or car – will fuel growth in the banking sector for the foreseeable future. The industry must respond with relevant strategies that leverage the shifts in banking behavior and seize the maturing opportunity.
Key findings discussed in the report include:
- Millennial penetration over-indexes in 14 of 21 types of financial holdings. This underscores the importance of targeting these consumers with products they value delivered in ways they prefer.
- Millennials over-index versus the general market for each major event as well (with the exception of retirement). Financial providers cannot afford to miss out on a potential long-term growth opportunity to support millennials’ everyday financial needs and important life events.
- However, Millennials still make safe/conformist choices about where to bank. They express moderate satisfaction with their product holdings, although there is a real interest in new (particularly digital) product features.
- Today, millennials account for around a third of the global population. In China, where millennials account for 22% and 28% of the country’s total and adult (20+) population respectively, it is estimated that millennial numbers exceed the entire US population. This is symptomatic of how nearly 90% of global millennials live in emerging economies because of the impact of lower birth and death rates in advanced economies. Strong representation across regions means that millennials represent a global demographic cohort of over 1 billion individuals.
- A precautionary mindset towards credit card ownership or usage (like that uncovered in the Experian research) is understandable given the escalating level of debt that characterizes the lives of younger millennials and Generation Z.
- Millennials are more likely to experience a number of key life events in the coming years. Banks can capitalize on this with targeted products designed to facilitate these events or mitigate the disruption they cause.
Source from GlobalData
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