Core Insights - Millennials are 56% more likely to grow their relationship with their primary financial institution over the next twelve months compared to Gen Xers and baby boomers [1][3] - The study highlights significant financial trends among millennials, including their response to the rising interest rate environment and their financial provider preferences [2][3] Financial Trends and Preferences - 73% of millennials report that the rising interest rate environment has significantly impacted their standard of living, a higher percentage than Gen Xers and baby boomers [2] - 65% of millennials feel they are living paycheck to paycheck [2] - Over 25% of millennials believe that buying a home hinders wealth accumulation rather than building it [2] Opportunities for Financial Institutions - 30% of millennials plan to increase the number of financial providers they engage with over the next twelve months, which is 2.5 times more than Gen Xers (14%) and baby boomers (8%) [3] - Millennials hold 14% and 28% more products with their personal financial institution compared to Gen Xers and baby boomers, respectively [3] - The study indicates that millennials are significantly more likely to switch financial providers for a better digital banking experience [4] Strategic Recommendations - Financial institutions should prioritize enhancing their digital sales and service platforms to attract and retain millennial customers [4] - There is a strong demand among millennials for personalized digital banking experiences, which financial institutions must address to remain competitive [4][5] Research Methodology - The study was conducted in partnership with The Center for Generational Kinetics, involving 1,500 participants weighted to the 2020 US Census for demographic accuracy [4]
Alkami Releases 2024 Generational Trends in Digital Banking Study