Millenials are making a huge impact in society. It can never be denied that this youngest and most populous generation are changing conventions with shifting from trading taxis to Uber rides to postponing marriage and home ownership. They also have unconventional banking habits according to banking industry experts in a news article by US News. However, they have similar values when it comes to desiring a stable and secure financial institution.
Here are significant considerations millenials make when it comes to banking.
Technology is required
Millenials are digital natives. Thus, they seek methods on incorporating technology into their banking experience. They seek to have quck online and mobile app interactions. These include checking balance and depositing money through digital methods. Americas at Collinson Group VP Lars Holmsquist describes millennials as invididuals who seek convenience and access.
Opts for peer-to-peer lenders
In Fico's Millenial Report, survey shows that other demographic groups do not opt for peer-to-peer lenders unlike millenials who are more likely to consider applying for their services.
Desire to have financial advisors
Millenials prefer banks that advise them on how to save and budget. This group of individuals want coaching on how they can maximize their investments and savings, as according to a commentary in American Bank.
Cash dominates
Even with the tech-saviness of millenials, they still use cash. A survey was conducted by Qualtrics and Accel with 8,000 adult respondents to understand how different generations perceive money and payment alternatives. Qualtrics head of global insights Mike Maughan discovered that 80 percent of millenials say they utilize cash and 64 percent bring cash most of the time.
Prefers online payments over mobile payments
It appears that millenials might choose mobile payments. However, a survey by the Qualtrics company show that millenials use Apple Pay or Android Pay 16 times more than baby boomers, where in this mobile use is still delayed compared to their use in cash.
It has been found out that millenials use online services of PayPal and Venmo that permit users to send payments without passing through bank channels. Maughan describes that 62 percent of millenials use Paypal.
Benefits override privacy
Millenials may not be as private as baby boomers or generations before them if they find that they can benefit from sharing their personal data. This could include having a more personalized banking experience.
Visit banks frequently
It might appear that in the advent of more functional banking apps, millenials are expected to be not physically visiting the bank. However, Qualtrics survey found out 30 percent of millenials visit the bank frequently.
