A LIMRA research study on bank customer loyalty revealed that with the right approach, Millennials represent a long-term growth opportunity for financial institutions.
The study found that Millennial preferences differ from other generations starting with what they deem important in choosing their bank or credit union. When selecting a bank, more than half of Baby Boomers and the Silent Generation say convenient locations are important, as do 47 percent of Gen X. Only 39 percent of Millennials prioritize locations.
By contrast, online and mobile services ranked higher with Millennials than the other generations as important selection criteria.
“As more Millennials establish relationships with their banks, we expect online and mobile services to grow in importance for them and for Generation Z, following right behind the Millennials,” said Patrick Leary, corporate vice president, Distribution Research for LIMRA.
Because they have a greater percentage of their savings and investments at their bank or credit union Millennials represent an ideal segment to offer additional financial services that other generations have obtained elsewhere. Only 22 percent of older bank customers would consider a financial plan through their bank while 4 in 10 Millennials said they would be willing to consider a plan.
When compared to previous generations, Millennials have been late starters to marriage, buying homes and starting families. Now that the oldest Millennials are reaching their mid-30‘s more of them are experiencing these life events. Financial institutions that understand and accommodate the preferences of Millennials can position themselves for long-term growth.