Cause and Effect: If you build it, will they come?

July 23, 2014
/   Spotlight

Many financial institutions assume that digital banking is lucrative because the most valuable customers happen to bank online. While there is certainly a correlation between online bankers and higher profitability, quantitative evidence suggests that...

Intuit 2020 Report: The Future of Financial Services

April 11, 2011
/   Insights

Today, Intuit released the latest edition of the Intuit 2020 report, Intuit 2020 Report: The Future of Financial Services, which identifies and examines four key trend areas that will  transform the financial services industry...

Fast Facts: Student Loans

January 22, 2013
/   Insights

The Financial Services Roundtable recently released another iteration of its Fast Facts, reliable, bullet-point research about issues facing the financial services industry. Topics span TARP, Dodd-Frank, insurance, lending, retirement savings and more.  Below are some updated Fast...

The Top 10 Trends in the Digital Banking Industry

December 18, 2013
/   Spotlight

2014 is rapidly approaching and as the year wraps, the Digital Insight team has pulled together the top 10 trends in the digital banking industry based on data and trends from studying financial institutions....

Making Banking Fun: Gamification in Financial Services

August 5, 2013
/   Insights

Recently, the Banking.com team sat in on American Banker’s webinar, “Gamification in Financial Services: Five Proven Ways to Get an Edge,” which shared how leading brands in financial services have applied gamification to reach...

Technology M&As: The Beats Go On

May 29, 2014
/   Insights

The ongoing fascination with Apple’s $3 billion purchase of Beats Electronics is entirely understandable, because it’s a cool story. However, it also says a lot about what’s going on between finance and tech.

What We’re Reading

May 5, 2011
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below. Virtual Banking Worlds Provide Tangible Lessons American...

Small Business: Perception vs. Reality

November 21, 2012
/   Insights

In the most recent election cycle, like most others before it, the one sector of the economy that got the most attention was small business.  This is the future, we were told by every...

What We’re Reading: Thanksgiving Edition

November 22, 2012
/   Spotlight

Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom. Mobile Thursday? Plans for Thanksgiving...

Knowing how to make, manage and invest one’s money has long been the key to financial security and stability, but what was once a relatively linear road map for many generations has shifted with Millennials. Currently the largest generation in the American workforce, this group is hitting traditional financial milestones much later than previous generations. With crushing student debt and a general distrust in traditional banking and financial services, Millennials know less about managing personal finance than any other generation before them and have vastly different ideas about what constitutes financial success.

While buying a home was once seen as one of the biggest indicators of financial success, Millennials now have a different idea. According to a recent report conducted by Facebook, 46 percent believe that being debt free is the biggest sign of financial success. Less than half that number, 21 percent, still place home ownership as a top priority, reflected by the perennially low home ownership rates among those under 35-years-old. Even lower on the list is retirement, with only 13 percent of Millennials believing that retirement is a priority. In fact, our research found that many Millennials don’t believe that they’ll ever retire, and as such, don’t bother learning how to retire successfully or gain financial literacy on the subject. This is becoming such a common occurrence that some companies are starting to offer loan repayment perks in addition to standard 401k benefits to entice younger workers. After all, it’s hard to think about the future and plan long-term when you can’t get yourself out of your current, problematic financial situation.

With the average college graduate now owing $35,000 in student loans, it’s not surprising that many Millennials prefer debit cards to credit cards. Adding to this, Millennials have also distanced themselves from traditional banking methods and financial institutions. A new national study we conducted with Global Cash Card found that out of the 53 million Millennials that are considered employed, about five million do not have a checking account. Our research found that the main reason for this is a distrust in banks, cited at 48%. Non-traditional banking methods like paycards are emerging as a viable and beneficial alternative for Millennials. In fact, 75% of current paycard users said that paycards help them save for retirement, and roughly one-third of Millennial workers – more than 18 million people – expect this would be the case if they received their wages on a paycard as well. With Millennials and current paycard users shown to be the most likely to receive payroll education and understand their options, these findings speak volumes.

Despite Millennials’ tendency to live in the “now,” it’s imperative that they look ahead and map out their financial future before it’s too late. By taking action and gaining financial literacy early, Millennials give themselves the best possible chance of successfully navigating a very different financial world than generations before them.

 

Jason Dorsey is the Chief Strategy Officer and Millennials Researcher at The Center for Generational Kinetics. He leads The Center’s team of PhD researchers as they uncover new generational trends and truths while solving the complex generational challenges his clients face—especially with Millennials (Gen Y) and the next generation, Gen Z. Jason has been featured as a generational expert on 60 Minutes, 20/20, The Today Show, The Early Show and dozens more. Adweek calls him a “research guru” and The New York Times showcased him in its cover story on marketing to Millennials. Jason’s research clients range from global banks and public software companies to automakers and consumer brands.

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Voices

Compelling voices and contributed content from around the web

James W. Gabberty

Gabberty is a professor of information systems at Pace University in New York City. An alumnus of the Massachusetts Institute of Technology and New York University Polytechnic Institute, he has served as an expert witness in telecommunication and information security at the federal and state levels and holds numerous certifications from SANS & ISACA.

Brad Strothkamp

http://www.forrester.com/rb/analyst/brad_strothkamp

Marisa Mann

Marisa Mann brings over 15 years of experience in consulting and financial services industries to the Solstice team, working on large scale enterprise initiatives across many technologies, including specializing in the digital space – Internet and mobile. Mann is passionate about mobile and the endless possibilities for the enterprise, delivering business value through strong brand recognition and driving to excellence in the consumer experience. Prior to Solstice, Mann worked at JP Morgan Chase, Diamond Management and Technology Consultants, Washington Mutual, Inc, and Accenture.

Zachary Ehrlich

25-year-old writer, and as a native San Franciscan, I am unreasonably loyal to Bank of America, if only for their superhero-like origin story, involving the 1906 earthquake and Italian fruit vendors.