After enduring the Great Recession, Millennials are cautious bankers, wary of traditional financial and investment strategies. They want an open, transparent and authentic relationship with their financial institutions. As a generation of consumers who define themselves by their use of technology, many Millennials have taken a DIY approach to their finances, relying heavily on mobile and online banking options to manage their finances.
Contrary to popular belief, Millennials are savers rather than spenders. And when we look at the different types of Millennial consumers, upscale Millennials are more likely to engage in financial planning and saving than their generation as a whole. These young, affluent consumers earn more than $75,000 each year and represent a strong pocket of opportunity for financial institutions.
According to Nielsen’s second-quarter 2015 Consumer Confidence Report, roughly 70% of Millennials believe their personal finances will be either good or excellent in the next year, yet 55% still feel like the U.S. is in an economic recession. This makes Millennials cautious spenders and savers. After covering their living expenses, Millennials are most likely to put money into savings. Millennials are more than twice as likely as the average consumer to have student loan debt, and roughly 26% of Millennials use their extra money to pay off these debts. Despite improvement in economic conditions across the nation in recent months, about one-quarter (23%) of Millennials do not have any extra money after payday.