NEW YORK, Oct. 18, 2016 /PRNewswire/ -- The financial services industry is increasingly focused on winning Millennial customers, but most firms still fail to deliver an experience that will resonate with this generation, according to a study released by Corporate Insight today that analyzes the opportunities and challenges that financial services firms face in serving the Millennial generation. Millennials Revisited: Financial Services and the Digital Generation explores how banks, brokerages, credit card issuers, insurers and retirement plan providers are changing aspects of their marketing, products and service models to capitalize on the Millennial opportunity and identifies those firms and tactics that are most effective.
A follow up to The Millennial Shift study from April 2014, Millennials Revisited shares findings from Corporate Insight's ongoing industry tracking, and its recent surveys of bank customers, retail investors and defined contribution (DC) plan participants, focusing on how Millennials differ from other generations in their financial behaviors, preferences, attitudes and circumstances. The study finds that just 11% of Millennial retirement plan participants are comfortable managing their retirement investments themselves, and half of Millennial retail investors say they prefer to rely on the guidance of a broker or advisor rather than trusting their own investing decisions. Compared to Baby Boomers, Millennials put a substantially higher rating on the importance of financial education from their bank (+24%), retirement plan provider (+15%) and brokerage firm (+10%). Further, the study finds that Millennials are the generation most likely to interact with their bank exclusively via a mobile app rather than through a website alone.
"To succeed with Millennials, firms must recognize and respond to their need for financial education and guidance, and their demand for mobile account access," James McGovern, vice president of Consulting Services at Corporate Insight, said. "Flexible pricing and products, a socially conscious corporate philosophy, and all-around transparency are also important elements of an effective Millennial-focused value proposition."
Banking: Banks continue to invest heavily in their mobile experience, recognizing that this is the key channel for engaging Millennials.
Credit Card Issuers: Card issuers are integrating credit scores, spending analysis and other capabilities into their digital offerings to target younger consumers.
Insurers: Property and casualty insurers are experimenting with new product design and pricing strategies to accommodate Millennials' preferences and budgets. Life insurers are offering simplified, digital applications to make it easier for Millennials to purchase policies.
Investing/Wealth Management: Leading brokerage firms like Charles Schwab, E*TRADE and Fidelity have rolled out low-cost digital advice offerings to connect with Millennials and defend against fintech startups targeting them.
Retirement: DC plan providers have made significant improvements to their mobile offerings but may be missing the mark by focusing on mobile-optimized and responsive designed sites rather than native apps.
For more information, to receive a copy of the report or to schedule an interview with the study's authors, please contact:
About Corporate Insight Corporate Insight provides competitive intelligence, consulting and user experience (UX) research to the nation's leading financial services firms, insurers and educational institutions. For more than two decades, the firm has published customer experience-focused research and has advised clients on key competitive issues with a focus on helping them improve their digital capabilities. The firm offers subscription-based Monitor Services in 14 verticals, including brokerage, healthcare and alumni relations, along with custom research and consulting services, digital capabilities audits, special studies and UX research.