Generation Y Banking Behaviors and Attitudes: Expanding the Banking Relationship on Their Terms

Published by: Javelin Strategy & Research

Published: Aug. 1, 2007 - 34 Pages

Table of Contents

Overview

Primary Questions

Findings and Analysis

Future Success Relies in Focusing on Generation Y for the Long-term

Defining Gen Y

Success with Gen Y Requires Availability of Traditional and Online Channels

Create a user-friendly experience

Take advantage of cross-sell opportunities

Time and Control Are the Highest Priorities among Gen Y

Gen Y Acquisition Requires Initiating Highly Relevant Relationships Early On

Security Features Are Not Top of Mind Concerns for Gen Y

Keep Security Simple: Interactive Financial Messaging™ Alerts Ideal for Gen Y

When Do Banks and Credit Unions Need to “Talk” to Generation Y?

How young is too young?

Parent Involvement Is the Inroad to Developing Relationships with the Younger Gen Y

True Youth-centered Initiatives Strike a Cord with the Younger Gen Y

Related Research

Appendices—Additional Data about Gen Y Banking Behaviors and Attitudes

Table of Figures

Figure 1 Projected Income Growth by Generation

Figure 2 Reasons for Selecting a Financial Services Provider by Gen Y

Figure 3 Online Account Opening Rates by Gen Y

Figure 4 Consumers’ Value of Alerts by Gen Y

Figure 5 Reasons for Not Banking Online by Gen Y

Figure 6 Reasons for Beginning to Use Online Banking by Gen Y

Figure 7 Opinions Regarding Paper Statement Turn-Off by Gen Y

Figure 8 Financial Products Currently Used by Gen Y

Figure 9 Financial Transactions Performed in the Past 12 Months by Gen Y

Figure 10 Likelihood of Online Banking PFM to Affect Retention by Gen Y

Figure 11 Preferred Methods for Authentication by Gen Y

Figure 12 Increased Online Behaviors Associated with Identity Theft-related Threats by Gen Y

Figure 13 Online Marketing Materials for Gen Y

Figure 14 Motivators for Viewing Bills Online by Gen Y

Figure 15 Use of Software to Budget or Manage Finances by Gen Y

Figure 16 Satisfaction with Current Banking Relationship by Gen Y

Figure 17 Reasons for Switching Banks by Gen Y

Figure 18 Usage of Credit Monitoring Service in the Last 12 Months by Gen Y

Figure 19 Usage of Consumer Safety Identity Products in the last 12 months by Gen Y

Figure 20 Credit Monitoring Service Source by Gen Y

Figure 21 Likelihood to Renew Credit Monitoring Service by Gen Y

Figure 22 Preferred Methods for Increased Security by Gen Y

Figure 23 Reasons for Selecting a Financial Services Provider by Gen Y, Gen X and Boomers

Abstract

• How profitable is the Gen Y account holder to a bank or credit union?
• Through what channels can financial institutions (FIs) most effectively engage and retain Generation Y account holders?
• What are the factors that motivate Generation Y to engage in and remain with an FI?
• When should banking institutions begin building relationships with Generation Y consumers to maximize acquisition and retention?

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