Enables banks and financial services firms to understand and define what is required to satisfy the needs of millennials
PHOENIX, Jan. 19, 2016 – CCG Catalyst, a management consulting firm offering strategic advice to banks, announced that it has released its latest research report, “Millennials and the Future of Banking: What Banks Need To Know About This Digitally Precocious Generation To Prepare For The Future of Banking,” conducted by Catalyst Pro Group, the company’s recently launched educational program for community banks and fintech executives. This study examines the behaviors, experiences and financial needs of people who are 18-35 years old in efforts to envision the future of banking.
The study, administered through AskYourTargetMarket, resulted in 450 completed surveys of millennial respondents across 46 US states who answered questions about their banking actions, habits, behaviors and needs while also providing their opinion on banking in the future. Some of the most significant conclusions are as follows:
- Contrary to common belief about millennials’ use of non-banking channels, respondents are still using traditional banking institutions. Almost 90 percent have a financial services relationship with a bank or credit union and less than 4 percent use an online bank only;
- Only 48 percent use checkbooks;
- 68 percent use online banking to manage their bank activities;
- 46 percent use digital banking to pay bills online, 44 percent send money online and 39 percent make mobile deposits;
- When it comes to apps, 91 percent chose PayPal and 16 percent chose Google Wallet.
For the future, the study indicates that millennials want their bank or credit union as an overall financial caretaker providing services such as secure accounts, file taxes and offer options for saving for retirement. Millennials also want their bank to be digitally accessible from a mobile or online channel, integrated into their cars and home appliances and be able to pay their bills automatically.
“Our results show that this digitally engaged generation not only expects omnichannel banking, but omnipresent banking as well,” said Paul Schaus, CEO and president of CCG Catalyst. “As banks transform their business strategy to cater to this generation, they must understand that while this group wants more automated functionality, they still expect to maintain control over their banking but want human connection when they need it.”
“Millennials and the Future of Banking: What Banks Need to Know about This Digitally Precocious Generation to Prepare for the Future of Banking” offers conclusions from the results of approximately 124,000 data points from 450 surveys. These data points were gathered, analyzed and condensed into insights, themes and recommendations to help banks understand millennials’ banking behaviors and what to expect with banking in the future for this generation. The research is available for download at https://www.ccg-catalyst.com/millennials-future-banking/.