Jul 24, 2018 MicroBilt News
With the oldest of the generation now in their mid-30s, millennials represent a considerable portion of America's populace, accounting for 56 million individuals of the country's workforce, according to government data compiled by the Pew Research Center. Their actions largely dictate how and where business owners invest and dedicate their marketing energies.
Perhaps as a result of their growing up in an analog era that quickly transformed into digital, millennials are among the chief users of online channels, making them an outlet financial firms must ensure is up to par.
When it comes to banking, over 9 in 10 millennials say they regularly conduct financial transactions via the internet, according to a polling done by Gallup. Nearly 80 percent said they also utilize mobile devices for banking purposes.
What stands to be the biggest takeaway from the survey is millennials use online channels more than their older peers. Indeed, two-thirds of 18- to 35-year-olds said they'd physically gone to a brick-and-mortar branch in the previous six months, Gallup reported. This compared to 81 percent of baby boomers and 80 percent of traditionalists, the oldest generation.
Ezra Becker, senior vice president for a leading credit agency, noted businesses that provide loans for millennials need to tap into their customers' proclivities in terms of how they interact with the outside world for both goods and services.
"Younger consumers present substantial growth opportunities for lenders during their lifecycle," Becker explained. "It's imperative to understand their credit preferences now to build strong, long-lasting relationships going forward."
Subprime millennials open more loans than predecessor generations
Their ability to effectively manage credit is no less important, and like Generation X and baby boomers, they aren't impervious to financial foibles. At 34 percent, millennials open more loans on a per-person basis than any other age group among subprime borrowers, according to a report done by Clarity Services. This compared to 26 percent of boomers and a mere 3 percent of the silent or traditionalist generation. The study also found that 32 percent of online channel lenders' subprime borrowers are millennials, second only to Generation X.
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