There’s no doubt that the new power persona – the affluent millennial – is completely reshaping the financial sector.
We recently hosted a joint webinar with LinkedIn, How Millennials are Changing Financial Services, where we discussed new findings on affluent millennials and their impact on the financial services industry.
This presentation was jam-packed with useful information, so we thought we’d share some with you. Here are seven key stats about the way millennials are changing the financial landscape, with takeaways on how your organization can adapt to these trends:
1. 46% of affluent millennials perform their own research, make decisions, and execute trades.
Affluent millennials are increasingly looking for advice that establishes trust and enables independence. They aren’t interested in handing over financial responsibility, and feel that they should make their own decisions about their finances. As Mohamed El-Erian, Chief Economic Adviser at Allianz says, ”Millennials are different. They have grown up empowered and expect to have a more self-directed life.”
2. Over 76% of affluent millennials are open to trying financial offerings from non-financial brands.
Financial institutions are going to have to compete with new, independent services as millennials become more comfortable using offerings from traditionally non-financial brands. Millennials already have a high adoption (about 2 in 5) of non-financial mobile payment platforms, like Apple Pay and Google Wallet.
3. 70% of consumers prefer to interact with their bank online
Millennials grew up with this technology, so conducting business banking online is fairly self-evident. However, online banking is becoming more popular among older age demographics as well.
In general, consumers are moving towards communication methods that are more virtual. While they may expect less face-to-face interaction, there’s a higher demand for that always-on presence from institutions.
4. Affluent millennials are 2X more likely to use social media to inform their financial investments and decisions.
The number of affluent millennials using social media to inform their financial decisions is growing rapidly. They are using social media to find information on financial products and are making decisions based on that information.
In the APAC region, social networks aren’t just seen as a way to find information, but also as a way to actually conduct financial transactions. For example, ICICI Bank Pay, India’s largest private sector bank, is now offering its banking services through Twitter.
5. 87% of affluent millennials seek thought leadership through at least one type of social network.
Millennials are looking for key financial advice through social, particularly in Asia (in Hong Kong it’s 91% of affluent millennials, Singapore 90%, whereas in Australia it’s slightly lower at 82% and India 82%).
Financial institutions need to focus on establishing relationships online. That means having an authentic voice and offering valuable, personalized content to your audience.
6. Millennials share 13X more content about finances on LinkedIn than Gen X.
Millennials seek greater involvement in the financial decision-making process and are doing their own research. They spend the most time engaging with thought leadership and educational content, as well as investigating peer opinions.
7. 52 percent of the international public consider employees either very or extremely credible. (Edelman Trust Barometer)
Prospective customers are more likely to trust what an employee says about their organization rather than what the organization says.
Consider getting your employees involved on social and starting employee advocacy programs. Employee advocates can help you build trust with your potential customers, and can help reach a much bigger audience by sharing content on their own networks.
The Big Lesson? Adopt Early, and Dig in.
Millennials are changing the financial landscape in a big way. Financial institutions that accept these trends and jump in will likely outwin against the lag of their competitors.
To learn more about these trends and get all the stats, you can watch the full webinar here.