Apathy, advice and awareness – what does the financial future of Gen-Y look like?
Millennials are optimistic about their economic prospects, but where and how should banks be stepping in to help them?
What do Millennials think about banking?
Millennials currently show above-average trust in well-established institutions such as Barclays and HSBC but they are also the most open to non-traditional brands and advanced digital offerings from new players like Metro Bank.
There is a level of apathy towards changing banks, with Millennials frequently stating that – ‘if my family use them, then I will too’ and this is also reflected in Millennials ranking their parents as their top source of financial advice, with their bank coming further down the list than school and university.
What does the bank of the future look like?
Despite many having financial assistance from their parents, Gen-Y are concerned about their money management and spending practices. They expect the bank of the future to advise on these matters, as well as having a significant digital offering.
Despite below-average incomes and relatively low credit scores, Millennials are generally optimistic about their finances and home ownership prospects – with increased awareness in government schemes such as the ‘Help to Buy ISA’ bolstering this.
So what do banks need to do?
Millennials need banks need to shout about their service provisions, and step up their digital offerings in this already saturated market.