They may not love banks, and they may not be saving their money — but millennials are increasingly being wooed by financial tools, apps and services that meet their unique needs.
Every few decades, one generation comes along and disrupts an economy with new innovations, proving that things that were once deemed necessary are now outdated or inefficient. Today, as the largest and most technologically adept generation in American history, millennials are poised to force just such a change in the banking sector.
Millennials – the more than 80 million young adults in the U.S. bound to inherit and earn tens of trillions of dollars in the coming decades – are the generation most attuned to the banking industry’s shortcomings. While banks were once necessary and integral parts of communities, the four leading banks in the country are four of millennials’ least loved brands today. Moreover, 33% percent of millennials believe that they will eventually not need a bank at all, according to the Millenial Disruption Index, a three-year survey of over 10,000 millennials. According to a recent survey by Blumberg Capital, 60% of Americans feel banks fail to keep up with their needs and 57% believe traditional financial institutions will not exist as they do today within their lifetime.
For the last year, in preparation for launching our company, I have researched the expectations young people have towards managing their finances in depth. After speaking with more than 400 individuals ages 18 to 30 through fieldwork conversations, surveys and in-depth focus groups for my startup, it became clear to me that a significant portion of millennials find their banking experience just ordinary. They feel no loyalty toward their bank. Some go as far as to say that they don’t even see the difference between their bank and other banks, a finding that reflects the Millennial Disruption Index data cited above. In fact, the majority of the respondents in our study couldn’t think of any particularly positive – or even a particularly negative – experience they’ve had with their bank.
Couple this attitude with millennials’ financial situation: As a generation, millennials statistically have…[read the full article at www.forbes.com]