Millennials want a lot more than just avocado on toast, especially when it comes to their financial services. Rocky Scopelliti shares how Millennials and their mobiles are powering the growth of new digitally-led financial institutions.
Millennials (aged 18 to 34 years) have been publicly proclaimed the generation of financial flippancy, entitlement and even narcissism. But these negative stereotypes are misguided, as it’s undeniable that Millennials are challenging and changing how businesses work today. As consumers, workforces, investors and policy makers, they experience the world in a different way to past generations. And now, their economic power is growing.
Millennials will become the most valuable demographic for banks globally by 2028, and remain so for an estimated 18 years. In the United Kingdom, United States, China and Indonesia, Millennials average wallet size has already surpassed all other demographics with Australia next to follow. It won’t be until 2046 that we see Generation Z challenge Millennials’ status as peak profit makers for financial firms.
Population growth and economic development has created a consumer group who, in both number and purchasing power, are unlike any other in history. Our new report, Exponential Performance in a Millennial, Mobile, and Programmatic World, explores these concepts in much more detail.
Understanding millennials, their mobiles and money
In the report Telstra has commissioned the global Millennial, Mobile, Money Index (3MI™), to help banks navigate the digital transformation required to service the Millennial demographic. The 3MI observes how well, over the course of time, financial institutions are transforming their businesses and models through their capacity to attract Millennials, their ability to engage them through mobile devices and how much Millennials are investing with them.
Our research found that financial institutions have to be aware of the changing ways Millennials choose to engage with organisations, because Millennials are inherently mobile. Mobile penetration among the countries in our study is highest in Australia (96 per cent among Millennials) and lowest in the United States (74 per cent), yet the country most likely to engage on mobile is China – where 88 per cent of Millennials have a mobile-first engagement with their bank.
Millennials are also more lucrative to traditional banks and their digital challengers than ever before, with the Millennials’ average wallet size now greater than all other demographics in 50 per cent of the countries studied. As fintech start-ups and established internet companies look to capitalise on the booming Millennial demographic, financial institutions must progressively digitally transform their business and operating models to meet the mobile-first needs of its millennial customers. Leveraging programmable disruptive technologies to transform is an imperative in the millennial-led experience economy.
The future is Millennial and exponential
Financial organisations need to change their technology investment strategies, take advantage of innovation in programmable IT, and leverage insight and understanding of the millennial market. If they do, they will be the companies that seize the opportunity of the millennial mobile-first market to achieve exponential growth.
Learn more from our whitepaper and a range of interesting content from our Exponential Performance in a Millennial, Mobile, and Programmatic World report.
 Wallet size is defined as total balance value of deposits and lending held by millennial