There are many factors that affect who we are, how we think and what we want out of life. Sometimes, these influences are so great that they shape a generation. Millennials have faced unique challenges and world events that have impacted what they want and need from financial service organizations, and it’s time to begin providing those services.
What defines this generation?
Millennials (1981–1996) grew up during the 2008 recession. Times were tough when they became young adults, and many had to live with their parents longer than prior generations. They got a late start building up wealth and have been slower to marry and start families. It is estimated that this generation will change jobs at least 8 times before they retire.
Why they are a force to be reckoned with
The oldest Millennials are now approaching 40 years old. They are currently the largest generation in the U.S. labor force and stand to inherit an estimated $30 trillion in wealth over the next twenty years.
What they seek from financial service organizations
Millennials are interested in financially preparing for the future, and want to establish relationships with financial service organizations that can provide:
Studies have shown that most Millennials check their cell phones within a minute of waking up for the day. They are dependent on technology and demand apps and software that make financial transactions quick and easy. When marketing to this segment, they prefer to be reached digitally or via social media platforms.
2. The ability to invest according to their values
Millennials, more than any other generation, say they want to use their wealth to change the world. They believe that a company’s environmental, social and governance (ESG) track record is important and factor this into their investment decisions; they also seek relationships with financial organizations that are socially responsible.
3. Thought leadership
Millennials get a bad rap for being irresponsible. As it turns out, they are just as in control, financially, as prior generations, and are eager to learn. They want meaningful thought leadership that helps address their concerns.
Need help winning millennial clients?
Millennials look to financial service firms they can trust to help them tackle their financial issues, including making up for a late start in saving for retirement and rolling over retirement savings in accounts left behind after each job move. Organizations that provide them with the services they demand, including technology, options for socially responsible investing and compelling thought leadership, are more likely to win their business.