Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Millennials and Finance - US - April 2017

"As Millennials continue down their financial journey, reaching this group will require going beyond generational marketing to target these consumers within their specific life stage. Millennials are between the ages of 22 and 39 (turning 40 in 2017) and, as such, represent a mixed group of consumers, experiencing a number of different major life milestones."
- Jennifer White Boehm Associate Director - Financial Services

This report will cover the following areas:

  • Urban and suburban Millennials drifting away from the bank branch
  • Saving for emergencies a struggle
  • AI awareness exceeds Millennials’ willingness to use it
  • Only half of Millennials confident in their financial knowledge
  • Millennials still have doubts about banks’ trustworthiness

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

          • The issues
            • Urban and suburban Millennials drifting away from the bank branch
              • Figure 1: Banking preferences, by geographic area, December 2016
            • Saving for emergencies a struggle
              • Figure 2: Top five financial challenges for Millennials, December 2016
            • AI awareness exceeds Millennials’ willingness to use it
              • Figure 3: Awareness or usage of artificial intelligence in finance, December 2016
            • Only half of Millennials confident in their financial knowledge
              • Figure 4: Confidence in financial services knowledge, December 2016
            • Millennials still have doubts about banks’ trustworthiness
              • Figure 5: Bank brand perceptions – Traditional, stable, trustworthy, December 2016
            • The opportunities
              • Younger Millennial males value customer service over interest rate
                • Figure 6: Preference for customer service over high interest rate, by age and gender, December 2016
              • Millennials aspire to spend money on experiences, not things
                • Figure 7: Preference to spend money on experiences, December 2016
              • More than half of Millennials think money will bring happiness
                • Figure 8: Agreement that money will buy happiness, December 2016
              • Financial technology improvements welcome
                • Figure 9: Convenience of financial technology improvements, December 2016
              • What it means
              • The Market – What You Need to Know

                • The Millennial generation is the largest in the US
                  • Millennials are more diverse than prior generations, but less than those up-and-coming
                    • Average Millennial salary tops $60,000
                      • More than a quarter are still paying student loans
                        • Majority of Millennials have checking or savings account
                        • Market Size

                          • The Millennial generation is the largest in the US
                            • Figure 10: Share of population by generation, 2017
                          • Millennials are more diverse than prior generations, but less than those up-and-coming
                            • Figure 11: Distribution of generations, by race, 2017
                            • Figure 12: Distribution of generations, by Hispanic origin, 2017
                          • Men and women almost equal percentages in Millennial generation
                            • Figure 13: Population by gender and generation, 2017
                        • Market Factors

                          • Millennials head nearly 20% of households
                            • Figure 14: Number of households, by age of householder, 2006 and 2016
                          • Millennial households with children make up 50% of all households with children
                            • Figure 15: Households with own children under age 18, by age of householder, 2016
                          • Continued uncertainty toward generation’s financial future
                            • Figure 16: Opinion toward Millennials’ financial future, December 2016
                          • The average Millennial salary tops $60,000
                            • Figure 17: Average income and average expenditures, by age, 2015
                          • Financial services account ownership
                            • Majority of Millennials have checking or savings account
                              • Figure 18: Account ownership – Banking products, December 2016
                            • Black Millennials less likely to own any financial account
                              • Figure 19: Account ownership – Banking products, by race/ethnicity, December 2016
                            • Millennial card holders most likely to own a Visa
                              • Figure 20: Credit card ownership – American Express, Discover, MasterCard and Visa - one or more cards, October 2015-November 2016
                            • More than a quarter are still paying student loans
                              • Figure 21: Account ownership – Savings and loan products, December 2016
                            • Millennial parents looking to build savings through investments
                              • Figure 22: Account ownership – Investment products, by presence of children in household, December 2016
                          • Key Trends – What You Need to Know

                            • Financial services brands continue to add AI, mobile technology
                              • Mobile, desktop app reduces need for login
                                • Financial services still seen as a mystery to half of Millennials
                                  • Fintech firms can apply for bank licenses
                                  • What’s In?

                                    • Millennials and financial technology
                                      • MasterCard launched AI machine learning product to monitor fraud
                                        • Banks continue roll-out of cardless ATMs
                                          • PayPal One Touch exceeds expectations
                                            • Credit card brands seen as more “recommended” than banks
                                              • Figure 23: Brand perception analysis – Recommended, December 2016
                                          • What’s Struggling?

                                            • Millennials worry about saving for unexpected costs
                                              • Figure 24: Top financial challenge – Saving for emergencies, by presence of children in household, December 2016
                                              • Figure 25: National General accident fixed-benefit mailer, February 2017
                                            • Skepticism toward using alternative financial lenders
                                              • Figure 26: Interest in using alternative lenders, December 2016
                                            • LendingTree launches new comparison platform
                                              • Half are confident in their financial services knowledge
                                                • Figure 27: Confidence in financial services knowledge, December 2016
                                            • What’s New and What’s Next?

                                              • Fintech firms can apply for bank licenses
                                                • Adulting School
                                                  • Ally’s “Do It Right” community
                                                    • Capital One’s Credit Wise
                                                    • The Consumer – What You Need to Know

                                                      • Millennials generally optimistic about their current financial situation
                                                        • Saving for emergencies, bill payment top of mind
                                                          • Millennials believe credit card brands to be stable, trustworthy
                                                            • Millennials aspire to spend money on experiences, not things
                                                            • Health of Current Finances

                                                              • Millennials generally optimistic about their current financial situation
                                                                • Figure 28: Current financial situation, December 2016
                                                              • US Northeast region most confident in finances
                                                                • Figure 29: Current financial situation, by geographic region, December 2016
                                                            • Current Financial Challenges

                                                              • Saving for emergencies, bill payment top of mind
                                                                • Figure 30: Top five financial challenges for Millennials, December 2016
                                                                • Figure 31: Lendingtree HELOC email, March 2017
                                                              • Millennials more likely than general population to be concerned about the present
                                                                • Figure 32: Biggest financial challenges, gen pop vs Millennials, December 2016
                                                                • Figure 33: Wells Fargo home buying direct mail, June 2016
                                                              • Millennial challenges vary based on geographic region
                                                                • Figure 34: Savings and bill payment challenges, by region, December 2016
                                                              • Millennial parents worry more about medical expenses, credit card debt
                                                                • Figure 35: Savings and bill payment challenges, by presence of children in household, December 2016
                                                            • Embracing Technology

                                                              • Urban and suburban Millennials drifting away from the bank branch
                                                                • Figure 36: Banking preferences, by geographic area, December 2016
                                                              • AI awareness exceeds Millennials’ willingness to use it
                                                                • Figure 37: Awareness or usage of artificial intelligence in finance, December 2016
                                                              • Preference for personal customer service response remains
                                                                • Most consumers prefer higher interest rate over better customer service
                                                                  • Figure 38: Preference for customer service over high interest rate, December 2016
                                                                • Younger Millennial males value customer service over interest rate
                                                                  • Figure 39: Preference for customer service over high interest rate, by age and gender, December 2016
                                                              • Payment and Spending Behaviors

                                                                • Millennial consumers more likely to save than spend extra money
                                                                  • Figure 40: Tendency to save or spend extra money, December 2016
                                                                • Millennial Hispanics have more difficulty managing their credit
                                                                  • Figure 41: Difficulty managing credit or savings, by race/ethnicity, December 2016
                                                              • Financial Brand Perceptions

                                                                • Bank of America considered most traditional, Chase considered stable
                                                                  • Figure 42: Bank brand perceptions – Traditional, stable, trustworthy, December 2016
                                                                • Millennials believe credit card brands to be stable, trustworthy
                                                                  • Figure 43: Credit card brand perceptions, December 2016
                                                                • Visa, MasterCard thought to be more innovative, personal than most banks
                                                                  • Figure 44: Financial brand perceptions – Personal, innovative, December 2016
                                                                • Lesser known banks and lenders less trusted than more traditional, well-known
                                                                • Sources of Financial Information

                                                                  • Only half of Millennials confident in their financial knowledge
                                                                    • Figure 45: Confidence in financial services knowledge, December 2016
                                                                  • One third trust friends and family for financial information
                                                                    • Figure 46: Sources of financial information, by gender, December 2016
                                                                  • Millennial parents look to social media as well
                                                                    • Figure 47: Sources of financial information, by gender and presence of children in household, December 2016
                                                                • Attitudes toward Finances

                                                                  • Financial technology improvements welcome
                                                                    • Figure 48: Convenience of financial technology improvements, December 2016
                                                                  • Midwesterners most doubtful of financial technology advancements
                                                                    • Figure 49: Convenience of technology improvements, by region, December 2016
                                                                  • Security fears still present, but manageable
                                                                    • Figure 50: Comfort with security of financial information, December 2016
                                                                  • Investing in the stock market seen as risky, but necessary
                                                                    • Figure 51: Willingness to invest in stock market, December 2016
                                                                  • Those with a lower household income see less benefit in investing
                                                                    • Figure 52: Willingness to invest in stock market, by household income, December 2016
                                                                • Attitudes toward Money

                                                                  • Millennials aspire to spend money on experiences, not things
                                                                    • Figure 53: Preference to spend money on experiences, December 2016
                                                                    • Figure 54: Groupon Holiday online ad, December 2016
                                                                  • Financial success defined by ability to pay bills, have funds left over
                                                                    • Personal time valued more than money
                                                                      • Figure 55: Valuing personal time over money, by age in generation and race/ethnicity, December 2016
                                                                    • More than half of Millennials think money will bring happiness
                                                                      • Figure 56: Agreement that money will buy happiness, December 2016
                                                                  • Appendix – Data Sources and Abbreviations

                                                                    • Data sources
                                                                      • Consumer survey data
                                                                        • Consumer qualitative research
                                                                          • Direct marketing creative
                                                                            • Abbreviations and terms
                                                                              • Abbreviations

                                                                              Millennials and Finance - US - April 2017

                                                                              US $3,995.00 (Excl.Tax)