Millennials, the generation born between 1980 and 1994, are banking differently than any preceding generation, embracing mobile banking and alternative digital payment options. They outnumber Baby Boomers and represent a segment that is growing in economic strength, social influence and banking potential. They differ from previous generations in the way they bank and the communication channels they prefer.
Millennials make up 70 percent of consumers who say they are more likely to immediately delete an email if it is not adjusted for mobile use. Millennials are an on the go generation with no plans to slow down in 2014, according to Jeff Fromm of Millennial Marketing. They look for ways to do things fast.
They are using mobile payment apps like Venmo, used to make and share payments; Apple Pay that lets them use the iPhone 6 to pay in stores; and Snapcash, where they can exchange money with the Chat feature. These mobile payment apps have taken the market by storm and are becoming increasingly more popular with young adults in the millennial demographic. The platforms are designed to make the payment process even more efficient and remove the fees that many associate with mobile or online payment options.
Millennials are banking differently than any preceding generation, embracing mobile banking and alternative digital payment options. Reaching this segment also differs from previous generations, reflecting growing digital preferences. With the help of the millennials, Forrester predicts mobile payments will increase nearly fourfold to $90 billion, by 2017.
We already know that Millennials are inclined to conduct common banking activities through the digital channel,” said David Vonk, who leads the North American banking practice at FICO. “While alternative banking may still be in its infancy, it has the potential to grow rapidly, especially as the Millennial generation enters its prime and pushes these services to the forefront of its banking agenda.”