Are You Targeting the Right Millennials?
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Transcript of Are You Targeting the Right Millennials?
Banking and Payment Innovations to Capture Millennials
Are you targeting the right members of Gen Y?
Daniel Van Dyke Research Specialist, Mobile
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
Is Gen Y all the same? © 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
Who are Gen Y.1 and Y.2?
Y.1: 18-24
13%
Y.2: 25-34
18%
35-44
17% 45-54
18%
55-64
16%
65+
18%
Y.1 population: 32 million Y.2 population: 44 million U.S. 2014 adult population: 245 million
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
Gen Y.1: 18 - 24
FINANCIALLY UNCOMMITTED
HIGH TECH MORE MOBILE FIRST
LOW EMPLOYMENT
STUDENT
LOW FINANCIAL PRODUCT OWNERSHIP
Gen Y.2: 25 - 34
BANK FLIGHT RISK
HIGH TECH HIGH MOBILE BANKING
GROWING INCOME
EMPLOYED
HIGH FINANCIAL PRODUCT OWNERSHIP
Y.1 18-24
Y.2 25-34
FIRST ADOPTER 21% 36%
36% 6% SOMEONE ELSE MANAGES FINANCES
48% 5% STUDENT
19% 16% WILLING TO TAKE RISKS
32% 61% MANAGE OWN FINANCES
18% 65% EMPLOYED FULL TIME
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
Y.1 18-24
Y.2 25-34
ONLINE BANKED PAST 30 DAYS 81% 89%
70% 80% MADE ONLINE PURCHASE PAST 30 DAYS
26% 34% MOBILE DEPOSIT PAST 30 DAYS
60% 70% MOBILE BANKED PAST 30 DAYS
20% 25% APPLIED FOR CREDIT CARD WITH MOBILE/PC
56% 63% ATM WITHDRAWAL PAST 30 DAYS
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
5 Recommendations Y1 & Y2:
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
Serve Gen Y.1’s mobile needs like a Neobank. 1
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
41%
3%
4%
6%
14%
32%
19%
3%
5%
10%
17%
46%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Never
More than 12 months ago
In the past 12 months
In the past 90 days
In the past 30 days
In the past 7 days
Percent of Consumers
Y.1 (18-24 years) All consumers
Gen Y.1 leads in mobile banking. MOBILE BANKING USE (GEN Y.1 & Y.2)
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
23% of top FI’s support pre- login balance viewing.
2 Make mobile banking as immediate as Tinder for Gen Y.1.
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
3 Target Gen Y.2 for mobile wallets.
12 months Gen Y.2 is most likely to use a wallet in the next year.
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
37% 44% 47%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Per
cent
of
smar
tpho
ne o
wne
rs
All consumers Y.1 (18-24) Y.2 (25-34)
Gen Y.2 is the most likely age group to use a mobile wallet in next 12 months.
LIKELIHOOD OF USING MOBILE PROXIMITY PAYMENTS IN THE NEXT 12 MONTHS
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
4 Use chat to start a conversation with Gen Y.1.
Gen Y.1 is early adopter of chat for customer service questions.
MOBILE BANKING USE (GEN Y.1, Y,2 ALL SMART PHONE OWNERS)
3%
7%
7%
22%
46%
47%
6%
12%
8%
21%
38%
51%
4%
13%
5%
24%
39%
49%
0% 10% 20% 30% 40% 50% 60%
I logged online to use a 'call back' service to request a return call from a bank representative
I used the bank's online chat service to converse with a customer service representative
I sent an email to the bank's customer service
I phoned my local branch to speak to a banker
I visited my local branch to speak to a banker
I phoned customer service
Percent of Consumers
Y.1 (18-24 years) Y.2 (25-34 years) All consumers
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
5 Be wary of burning Gen Y.1 with overdrafts.
3 in 10 recent Gen Y.1 switchers left for lower fees.
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
Questions?
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company
Thank you. Daniel Van Dyke Research Specialist, Mobile For questions regarding access to Javelin research please contact: [email protected]
© 2015 All Rights Reserved. Javelin Strategy & Research, a Greenwich Associates LLC Company