Banking

As the adage says, one of the surest ways to combat fear is to confront it head on. Financial anxiety is one of those fears. For 85% of adults, concerns around unplanned emergencies, medical expenses, insufficient funds for retirement, and school loans rank as the top stressors in their life.[1] For young, Millennial-aged adults, these concerns are even more pressing.

You have gotten your degree and settled in your career, now what? For many young adults, starting a family could be on the top of their priority list. So it’s pretty safe to assume that finding a house is on the list as well. As is the case with the job market and economy as a whole, Millennials are the largest – and potentially the most lucrative – segment in the housing market. In fact, this group has a collective spending power that exceeds a trillion dollars.[1]

A few months ago, the HORNE Banking team put together one of our most widely read and shared posts of all time, entitled Hey, Community Banks. This is What Really Matters to Your Millennial Customers. In it, we cited research from the Pew Institute highlighting that the value and power of this group come somewhat from its size: “By 2020, it is estimated that one in three Americans will be labeled a Millennial – and by 2025, 75% of our workforce will be composed of Millennials.” We noted the importance of technology, social media and personalization for banks trying to engage a generation that has more members in the U.S. Labor Force and that is the most diverse, well educated and well informed in our history.

Not long ago, we examined the value and importance of a healthy bank culture.  In it, we shared the HORNE Wise Firm model, which is based on the belief that a strong foundation is built on the combination of ‘we’ and ‘service’ – a cultural belief in working together to make a difference. We also shared some powerful statistics that indicate per-employee profit increases from $7,802 to $27,401 in organizations with a shared culture based on vision, mission, and values. 

College graduation is one of the biggest milestones in life. You walk across the stage and into the next phase of life. You join the workforce, find a home, and figure out how to make, spend and save money. Today’s college graduates represent one of the largest generational demographics in history. There are more than 92 million Millennials in the US, and they represent an enormous opportunity for banks that are willing to really look at the needs of this generation. [1]

By 2020, Millennials will account for $1.4 trillion in spending. That’s a massive increase from annual current levels of about $600 billion. Already, this generation is 80 million members strong, and their measurable impact is growing exponentially as they age into adulthood.[1] This demographic thinks differently about money and banks than their predecessors. They are financially informed, and prioritize quick, convenient and mobile banking solutions.

How’s this for a statistical wake up call? By 2020, it is estimated that one in three Americans will be labeled a Millennial – and by 2025, 75% of our workforce will be composed of Millennials. They may take a bad rap, but there’s no doubting it – Millennials are the future leaders of American business. It’s probably why there is so much discussion around how to attract and retain this large, active demographic as a customer base.