Who are the "Millenials" and why are they a unique generation?
The Millenial Generation comprises all young people who became adults at the turn of the century, in the year 2000. But why are they different from other generations? Here are this group's main characteristics.
Baby Boomers, Generation X, the Silent Generation... They all had their time but now it's the time for the Millenial Generation, i.e. the generation of young people who became adults in the year 2000. These are their unique characteristics, which represent new challenges for the banking sector:
Technology
The Internet, cell phones, social media... These are natural daily tools for these young people: they shop, complete transactions and share products and services. Their way of life makes the market more global. According to Accenture, 94% of Millenials use online banking; also, seven out of every 10 US Millenials use mobile banking services (data from the federal reserve).
Dissatisfied and skeptical
They tend to trust people less than previous generations: more than half say that they are independent; theirs is the most politically and religiously dissatisfied group in the last 25 years. Their struggle to find a job and leave their family home has led to this skepticism.
And this attitude extends to banks: recent surveys show that half of Millenials think their bank is no different from any of its competitors. Around 68% of members of this generation believe that, in five years, the methods for accessing your money and paying for goods and services will be entirely different.
The Millenial market
24% of people are between 18 and 34 years old. According to the US census, more than 75 million US residents are in this age range.
Education
When compared with other generations, there is a high percentage of people with higher-education degrees: just over three out of every 10 (33.6%).
Social situation
The Millenial Generation is also known for its "boomerang" nature: they return to their parents' house and delay creating their own home because of the current economic situation (difficulty in finding a job and buying a house).
Source: BBVA Research, The Millennials Paradox.