Gen Y (18-29) Value Multi-Channel, not Just Online Banking
Javelin Strategy and Research has announced results from a new nationally-representative study of 2,800 consumers titled "Generation Y Banking Behaviors and Attitudes: Expanding the Banking Relationship on Their Terms". Javelin says this report "dispels myths about the banking attitudes and behaviors of Generation Y (consumers ages 18 to 29). Despite the popular belief that Gen Y is primarily focused on alternative channels and technologies, Javelin found that this generation is actually more likely to choose providers and manage their finances through a mixture of traditional and new methods."
James Van Dyke, President and Founder of Javelin notes, “For years we’ve come to expect that younger adults always have the highest interest in new banking and payments technologies, yet new rigorous research proves this to be no longer universally true. Young adults may not see online capabilities as a differentiator simply because they are the best at navigating even a sub-par online site. Surprisingly, people born in the 1980s are more likely to choose a new financial provider based on a 1970s technology: ATMs!”
Regardless of Gen Y’s proclivity to initiate online transactions and use mobile phones and technology in general, Javelin data shows that Gen Y is not ready to abandon the brick-and mortar, or other channels, to go completely online or to the handset for all their banking needs. For example, when selecting a new financial services provider, Gen Y consumers ranked access to ATMs and access to branches as more important than online service capabilities, in comparison to those of other age groups.
According to study author and Javelin research analyst Jean Garascia, “This study uncovers vital and misunderstood aspects of a generation of bankers whose earning potential is set to double over the next ten years. Acquisition and cross-sell strategies must be realigned now to ensure a piece of the $3.48 trillion in expected income by 2017.”
Key Findings of the Javelin Strategy & Research Study:
- Gen Y’s overall population will exceed that of any other generation by the year 2017, with approximately 91 million Gen Y consumers compared to the 88 million Gen Xers and 77 million Boomers.
- As opposed to most other consumers, security threats are not motivators for Gen Y and, while Javelin data shows that younger consumers are the most likely to suffer fraud compared to any other age group (5.27% vs. 3.74% overall), Gen Y fraud victims are significantly less likely than other adults to use basic precautions prior to their information being compromised.
- In the last 12 months 80% of older Gen Y used an ATM for either a deposit or withdrawal, 59% used an automated telephone system to perform a banking transaction, and 90% visited a branch, demonstrating an apparent demand for multi-channel availability.
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