millennialsAND CREDIT

A DEEPER LOOK AT

WHO ARE THEY?

WHAT DO THEY WANT?

WHAT DO THEY THINK OF BANKING AND CREDIT?

HOW DO YOU TARGET THE RIGHT MILLENNIALS?

WHAT ABOUT THIN-FILE MILLENNIALS?

millennials

millennialsWHO ARE THEY?

BORN BETWEEN

1980-1995Diverse

Self-expressive #selfie

Generally Optimistic

Socially Conscious

Travellers/Jetsetters

Foodies

80Mmillennials

=25% of USpopulation

Millennials are nowthe LARGEST generation, surpassing Baby Boomers.

$200Bannual buying power

21%of US discretionary spend

=

They’re cash hoarders and conservative investors.

Millennials keep 52%of savingsin cash!

Source: The Intelligence Group, September 2012 Delotte 2014 Millennial Survey

They (on average) spend 2 hours a day ontheir smartphone, which equates to 765.9M hours

per week of captivation on their mini-screens.

Raised in the digital age, more than anything

Millennials are tech-dependent

MILLENNIALS

765,919,000

Generation X557,578,000

Baby Boomers499,866,000

Silent Generation60,845,000

TOTAL HOURSof Smartphone

Weekly Use

banking and credit?WHAT DO THEY THINK OF

They’ve been slowto adopt credit …Chalk it up to...the Great Recession, hefty student loans or stricter regulations surrounding credit card marketing to younger adults.

The numbers speak for themselves.

In 2014, less than 50% of all 19 year olds had established credit, compared with 80% in 2006.

19 20 21 22 23 24

Age of Consumer ■ 2006 ■ 2010 ■ 2014

1

2

3

4

5

Millions of Consumers

2.2M

M (<

50%

)

4.6M

M 1

9-ye

ar o

lds

Esta

blis

h C

redi

t (8

0%)

And their credit scores lag behind their Gen X and Boomer counterparts.

*VantageScore 3.0 was used for this study. The score range is 300-850.**Includes credit cards, mortgage, auto loans and personal loans/student loans.***Calculated using Experian’s Income Insight.

AverageVantageScore* Average Debt** Average Debt

(Excl Mortgage)Estimated

Avg Income***BankcardBalances

BankcardUtilization

Millennials(Age 19-34) 625 $52,120 $26,485 $34,430 $3,403 43%

Generation X(Age 35-49) 650 $125,000 $26,670 $50,400 $6,752 41%

Baby Boomers& GreatestGeneration(Age 50+)

709 $87,438 $19,217 $46,340 $5,603 25%

National Average 667 $88.313 $23,089 $46,790 $5,340 34%

Gen X46%

Gen Y27%

Bankcard Utilizationis also down ...

46% of Gen X’ers had bankcards when they were 18-34, compared to today’s millennials at 27%.

And when they do have a card, balances are lower compared to other generations.

But as they come of age – graduating, buying homes, starting families and moving up the career ladder –

millennials’ financial needs are growing.

7% Buy first home (208) 6% Sell or change home (129)

16% Change to a better job (194) 7% Change to a different job (180)

7% Graduate from school (263) 6% Enroll/return to college (223)

5% Buy/lease new car/truck (117) 11% Buy used car/truck (145)

7% Get married (214)

Events expected to experience in next 12 months*

Comparisons made vs. all adults. *Among events with at least 5% frequency.

millennialsWHAT DO THEY WANT?

They expectreal-time responses

to their specific needs and make important financial decisions based on social feedback

and collaboration.

They expect a more personalized

experience, one where products are recommended based on past behaviors and excellent

values are presented routinely.

Millennialsexpect lenders to:

Make the offer relevant. Think long-term.

Give honest feedback. Be consistent.

Provide online financial education and management tools.

They want to conduct their affairs on a smartphone; not

at a bank branch. Approximately 40% of

all consumers who use finance appsor visit mobile finance websites are…

you guessed it …Millennials.

Source: EMS Financial Outlook Study

71%would rather go

to the dentist than listen to what banks are saying.

A third ofyoung adults are ready to switch banksin the next 90 days

Source: Millennial Disruption Survey

73%prefer new finance products from tech companies.

They’d prefer financial services from the likes of Google, Amazon, and PayPal.

Source: Millennial Disruption Survey

68%believe within 5 years the way we accessour money will be totally different.

the right millennials?HOW DO YOU TARGET

The college-educated crowd is a great

place to start.College-educated Millennialsappreciate financial security

and will likely be good candidates for multiple products within a company.

(Fall 2013 Simmons Connect study)

84%HOLD JOBS

87%FULL TIME

$52,700AVERAGE INDIVIDUAL INCOME

Know your audience. Banks are the repository of customers’ financial information.

They see: the day-to-day transaction records; information about money in, money out; salary deposits, tax payments; and tuition and education loans.

Access to these vast data sets can be used to

personalize the digital customer experience.Precision-targeting tools give you the information needed to create a complete financial picture of Millennial prospects.

Serve up the right offers.Insights will help you gain a greater share of wallet with this influential and growing group.

thin-file millennials?WHAT ABOUT

It mightappear dauntingto assessthe thin-file Millennial.

With fewer trade lines, their missteps are amplified.A skipped payment or high-credit utilization hurt exponentially more.

Risk-based pricing strategies, using tools like

Extended View, can identify unique credit offers to “right size” the thin-file candidate and assign the appropriate credit limits.

Prescreen individuals before they apply to match Millennials with the products that best meet their credit profile.

Instant Prescreen enables lenders to target ...

the Right Consumer at Right Time with

the Right Offer.

Prequalification,a consumer-friendly option,

can be added to your decisioning toolkit. The consumer consent-based

credit inquiry allows lenders to match a consumer with the best option before the application process,

and it takes just seconds.

The conversion of approvedprequalification inquiries is 52%, representing a significant upsell

opportunity for lenders.

So while Millennials may have had a slow credit start, no one can deny they are coming of age.

The question is –

who will be ready and willing to partner with this massive market?

To learn more about Experian’s Millennial Insights, visit

www.experian.com/millennials