Millennials 'not wed' to traditional FIs, study concludes
Millennials are open to using a wide variety of nontraditional organizations for banking services, according to a newly published study, "Millennials: Financial Insights," by the financial services marketing research firm Synergistics.
According to a press release about the study, almost two-thirds of millennials have a PayPal account, and 4 in 10 said they would be likely to use Amazon and Google for banking and financial services, as well.
One-third identified PayPal as a likely provider while 3 in 10 named Apple as a possibility.
Between 20 and 25 percent would likely do business with a number of other organizations.
In the release, Synergistics COO Genie M. Driskill summed up the significance of the fingings for traditional FIs:
[I]t is clear that millennials are not necessarily wed to the traditional banking and financial system.
Millennials are not going to abandon traditional financial providers; however, they will look at all types of organizations including nontraditional providers to meet their financial needs.
Traditional providers are faced with a challenge to show how their products and services have value and utility in this increasingly competitive environment.
Aspects such as ease of access, reliable technology, trust in the ability to securely manage personal data, and competitive pricing may all be key.
The study, "Millennials: Financial Insights," examines the financial services profile of millennials (aka Gen Y), and their attitudes and involvement with depository accounts, investments, and financial providers.
For the study, Synergistics collected 1,000 Internet interviews — 700 with adults 18–34; 150 with adults 35–50; and 150 with adults 51–69.