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/   Spotlight

*Disclosure: Banking.com is powered by Digital Insight Security has long been, and continues to be, a hot topic in the financial services industry. From new tech developments to hackers, security is top of mind...

Fast Facts: Student Loans

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/   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...

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

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/   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

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/   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...

The Top 10 Trends in the Digital Banking Industry

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/   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....

Small Business: Perception vs. Reality

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/   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...

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...

Financial Literacy Month: How are you celebrating?

March 22, 2013
/   Insights

With April approaching, it’s almost time to kick off Financial Literacy Month! Strongly supported by the United States Congress and the Financial Literacy and Education Commission, Financial Literacy Month aims to promote the importance...

Industry Perception, Optical Delusion

January 14, 2013
/   Insights

In Washington, they talk a lot about ‘optics.’ This has nothing to do with regulatory scrutiny, or government mandates on eyeglasses. It has to do with perception—how something looks, the way a particular story...

According to new numbers released by Moody’s Analytics, most adults under the age of 35 have a savings rage of negative 2 percent. Looking at this and other data from the study, the of sought-after millennial generation seems to be saving very little. To find out how to combat this behavior, we spoke with Nicole Mayer, AIF, CDFA of RPG-Life Transition Specialists.

Banking.com: Should banks and credit unions be alarmed by news that millennial savings is at a serious low? What can they do to encourage saving?

Nicole Mayer: They should be alarmed by this. The financial services model is broken and this is where banks, credit unions and financial advisers need to educate millennials on the importance of saving and starting a plan early. Everyone is trying to sell something — instead let’s educate the generation to make better decisions. They will then buy products or services around savings and investments and be educated — not scared.

Is there one critical touch point or message that you think financial institutions are missing here?

Absolutely! Education! Financial institutions want to sell something instead of educating.

Why do you think millennials have stopped saving as much in past years?

People forget the 2008/2009 recession. We have short memories, and when you turn on the news or listen to the media about the stock market being at an all-time high and unemployment going down, people think all is OK. In fact, we are in the same position we were in 2007 with the stock market at all-time high. This is where we should be more conservative with our savings and make sure we have a “rainy day fund” set aside for when the market drops again and the job market slumps again.

Do you have any predictions in how this will change in 2015?

Hopefully, there will be a much needed market correction, which will remind people of the importance to save especially the millennials.

 

What do you think? Let us know by tweeting at us or posting in the comments below.

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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.

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.

Brad Strothkamp

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