by John Egan
There’s power in numbers, and that’s no truer than when you’re looking at America’s millennial generation. At 80 million strong and with estimated spending power of $200 billion, millennials are a force to be reckoned with — and marketed to.
Nowhere is the presence of millennials more apparent than in the financial services sector. But just as baby boomers or GenXers can’t simply be lumped into one marketing basket, millennials can’t either.
“When it comes to marketing anything to millennials, brands are forced to contend with a massive generation that is still struggling to be defined by standard metrics,” according to Content Standard.
“Particularly regarding finances, millennials can be hard to nail down — on the one hand lacking trust in established banks, while on the other hand mimicking conservative saving habits following the Great Depression,” Content Standard adds. “But as it is with trying to understand any person, focusing on just one aspect will always fall short of actually describing the individual. Singular attributes are how we construct stereotypes, and marketers who want to succeed will need a more holistic picture of who millennials are financially.”
At LeadsCon Las Vegas 2018, two speakers will share their insights into the millennial market during a session titled “How Two Successful Financial Services Publishers Earned the Respect of the Millennial Consumer.” The speakers are millennial millionaire Grant Sabatier, founder of Millennial Money, and entrepreneur and blogger Phillip Taylor, founder of PT Money. The session will be moderated by Dan Green, CEO of Growella, a millennial-targeted media company.
So, why should you pay close attention to how millennials perceive finance services?
“It is imperative for banks and financial services to capture the millennial market with strategies they will respond to. After all, this is a market segment that will soon hold the greatest portion of wealth in the U.S.,” according to V12 Data, a provider of omnichannel data.
In advance of LeadsCon, here are 16 statistics to help you improve your financial services marketing to millennials:
1. Globally, the aggregated net worth of millennials is projected to more than double from 2015 to 2020, skyrocketing to anywhere between $19 trillion and $24 trillion.
2. Compared with consumers age 50 and over, millennials are over 10 times more likely to consider borrowing money through peer-to-peer lenders.
3. 43 percent of millennials don’t think their bank communicates with them through preferred channels, such as mobile apps and text messages.
4. Millennials favor mobile banking. During a typical month, millennials access their financial institution 8.5 times via a mobile app or browser versus 3.1 times for non-millennials.
5. 27 percent of millennials trust the virtual currency bitcoin than they do big banks like Chase, Goldman Sachs and Wells Fargo.
6. 22 percent of millennials seek financial advice on social media, compared with 3 percent for people age 55 and over.
7. 39 percent of millennials would consider using a branchless bank, compared with 16 percent for people age 55 and over.
8. Millennials are five times more likely than their over-50 counterparts to close all of their accounts at their primary bank.
9. Among millennials, 69 percent major choose major national banks as their primary financial institution.
10. Millennials are 24 percent more likely than baby boomers to value financial education from their bank.
11. More than one-fifth of millennials have never written a physical check to pay a bill.
12. 63 percent of adult millennials don’t have a credit card, compared with 35 percent of consumers over age 30.
13. Among millennials, 71 percent would prefer visiting a dentist than listening to what a bank has to say.
14. 47 percent of millennials have transferred money to someone electronically.
15. 27 percent of millennials have never visited a brick-and-mortar bank branch.
16. Only 14 percent of millennials prefer to conduct banking activities in person.
Click here to register for LeadsCon Las Vegas 2018.