As Millennials reach their peak earning years, financial institutions are seeking to understand how changes in the mobile and digital economy affect this generation’s banking habits. In an effort to identify the generational expectations around such topics as money movement, communication and security, financial tech solutions firm Computer Services, Inc. (CSI) has released a national study with the Center for Generational Kinetics examining the banking preferences of the largest generation in the workforce today.
The report, Banking Trends through a Millennial Lens, analyzes the responses of more than 1,000 American adults. Among the key findings is that, more than any other generation, Millennials demand constant access to banking services. Vital to satisfying this need for “continual access” is providing comprehensive online and mobile tools that enable 24/7 banking. The study found, for example, that nearly one-third (31 percent) of Millennials check their balance daily, with 51 percent preferring to do this via a mobile app.
“Millennials operate in an economy of instant gratification, and financial matters are no exception to that expectation,” said Jason Dorsey, noted speaker and president and co-founder of the Center for Generational Kinetics, in a news release. “However, they will rely on their primary financial institution if it can provide access to robust mobile and digital banking tools that deliver a meaningful experience.”
The research shatters the myth that Millennials do not trust financial institutions, with 45 percent—more than any other generation—reporting that they trust their bank’s online financial tools for advice. This covers everything from investing calculators to information on retirement savings and mortgages.
The study also found that 91 percent of Millennials would absolutely transfer money through a bank’s online website and 82 percent would absolutely transfer money through a bank’s mobile app if those tools were available. Along the same lines, Millennials continue to prefer digital channels for communication with their bank. Nearly a quarter (23 percent) preferred customer support via email, while 17 percent expressed a preference for online chat.
“Today’s highly mobile society has dramatically changed the way financial institutions and consumers interact,” said Steve Powless, CSI’s CEO and board chairman, in the release. “Fortunately, banks of all sizes now have access to innovative mobile and digital banking tools that create a modern-day customer experience. By partnering with service providers, financial institutions can deploy technology solutions for banking Millennials more successfully, allowing them to remain competitive for decades to come.”