50% of millennials lack financial trust.
Now, name the source of this research:
- Pew Charitable Trust Research?
- Raddon Financial Group?
- The New York Times?
- Harris Survey?
- American Banker?
The answer? None of the above.
The source, are you sitting down? Facebook! That’s right — the ubiquitous, all-things-to-all-people Facebook.
Surprised? Yes, it’s the same Facebook that everyone loves to hate yet spends hours exploring. The same people who ‘control’ the trending topics away from conservative views (but that’s another story for a later post).
*Source: “Millennials and money: The unfiltered journey” by Facebook IQ, Jan 2016
As a bank marketer, if you’re not setting your sights on this critical segment, you might as well hire an M&A specialist and see what you can get for your bank. As a refresher, let’s take a look at just a few key points:
- Millennials are now the largest generation in the workforce. This means they are earning more, saving more, buying homes and, most of all, not bouncing checks or forgetting to pay their college loans.
- Millennials are poised to inherit $30 Trillion from their parents. Boomers, once known as the holy grail segment, have become the customers who are moving from your branch communities, closing their accounts and withdrawing money from their savings instead of depositing money each month.
- Millennials are reaching their peak earning years. This means your institution has to develop the products and services that appeal to them. The conversation changes from “How much do you have?” to “Are we the right fit for you?” This is especially important if one of your products is investment services. This segment questions the status quo.
The national banks have the right product mix that appeals to this segment. The community banks will need to look for answers. Millennials will be paying off their school loans, will manage their debt better and begin building their savings. This does not bode well for banks that seek to increase profits through fee income such as overdrafts. Products such as “oops” checking accounts will resonate with this target. Millennials will stay loyal to the bank that treats them like their mobile device… Free. Free. Free!
Want to read more? Here is another good resource…The Great Divide: Millennials are disconnected to the financial service industry.