Millennials: Banking the Opportunity

Table of Contents

1. EXECUTIVE SUMMARY

• 1.1. Overview
• 1.2. Key findings
• 1.3. Critical success factors

2. MILLENNIALS ARE A KEY AUDIENCE FOR RETAIL BANKING

• 2.1. Defining the demographic opportunity
  • 2.1.1. Millennials were born between 1983 and 1996
  • 2.1.2. Millennials have emerged as the largest living generation in many (but not all) nations
  • 2.1.3. Millennials are highly urbanized and more diverse than their predecessors
• 2.2. Millennials over-index for the majority of financial products
  • 2.2.1. Financial product usage has increased among millennials as the cohort has matured
  • 2.2.2. Over 80% of millennials globally hold a current or savings account, making debit cards the primary financial product
  • 2.2.3. Over two thirds of millennials own a credit card
  • 2.2.4. Lifestage and generational circumstances have prompted a heightened need for loans
  • 2.2.5. Millennials have emerged as the most important generation-based mortgage market
  • 2.2.6. Under half of millennials have a pension at a time when day-to-day expenses take priority
  • 2.2.7. Millennials are important investors in spite of their day-to-day financial challenges
  • 2.2.8. A majority of millennials have adopted most insurance products
• 2.3. Millennial lifestyles are characterized by life-defining events
  • 2.3.1. Millennials are more likely to be contemplating married life and starting a family
  • 2.3.2. Millennials represent the largest group of customers buying a house for the first time
  • 2.3.3. The fluid nature of millennials’ lifestyles make relocation a desirable and doable option
  • 2.3.4. Generation- and lifestage-defining events are shaping millennials’ financial goals
  • 2.3.5. Despite negative stereotypes, millennials are good at managing money

3. MILLENNIAL ATTITUDES AND ACTIONS WARRANT SPECIAL FOCUS

• 3.1. Millennials express moderate satisfaction with their product holdings
  • 3.1.1. Millennials are more likely to be promoters than detractors for their major account holdings
  • 3.1.2. Millennials are typically ambivalent towards the mortgages and loans they hold
  • 3.1.3. Millennials rate their mobile banking experiences positively
• 3.2. Millennials could be making better use of banking product features
  • 3.2.1. A wide range of financial management tools are desired but not widely used
• 3.3. Millennials are pretty typical in their research choices
  • 3.3.1. Savings: Millennials want the best rate from a reputable brand offering friction-free banking
  • 3.3.2. Mortgages: Millennials are fixated on securing the best rate, ideally from a local bank brand
  • 3.3.3. Loans: The influences shaping loan choices are consistent for millennials and the total market
  • 3.3.4. Investments: Millennials’ motivations are led by a desire for an immediate income stream

4. APPENDIX

• 4.1. Abbreviations and acronym
  • 4.1.1. Definitions
• 4.2. Methodology
  • 4.2.1. GlobalData’s 2018 Retail Banking Insight Survey
• 4.3. Secondary sources