5 key takeouts to consider when trying to engage Millennials with banking
Vox Pops International have recently conducted some video research with Millennials, to try and understand what the key needs and barriers are when it comes to banking – here is what we have found:
1. Younger Millennials are becoming increasingly concerned about managing their money, so they are getting to grips with their finances by:
- Having separate spending and saving accounts
- Regularly checking statements for incomings and outgoings
- Having a weekly or monthly budget
However, the temptation to overspend and rely on their parents continues to stunt them from becoming financially independent.
2. Millennials are unaware of the services that banks offer which can help them understand finances, so they are turning to their parents and educational institutions to help them:
Millennials cite their parents as their key source of financial advice, as they think that their parents will be most ‘clued up’ on the topic. Their second choice is often their school or university, as there are often services within these insinuations that offer advice.
However, Millennials do want more help from their banks, so clarity around the service provisions should be provided, either via clear signposting within the bank, or by banks visiting schools or universities, to inform them of what services are available.
3. Millennials have no idea about Help To Buy ISAs:
Millennials are unaware of this scheme, and when asked they assume it is a loan, or grant. Once they are made aware of the ins and outs of the scheme, they express a keen interest in learning more, as they do have concerns about getting onto the property ladder.
4. There is total apathy when it comes to changing banks – so incentives to change need to be more obvious and lucrative:
Millennials rely on their parents and family to choose their bank for them. Millennials show high levels of apathy when it comes to changing their primary bank, and as long as the bank ‘is doing what it needs to do’ then they see no reason to change. However, Millennials may engage with switching if the incentives are relevant.
5. Advanced digital offerings are key, to ensure that these ‘always connected’ consumers can keep on top of their money:
Most Millenials use digital banking, due to the convenience, time saved and flexibility of when and where they can bank. The best apps and services are those that have a multitude of services, an easy user experience, and require minimal (if any) details to be used or accessed.