Winning Affluent Millennials:
How this new power persona is reshaping the finance industry.
July 28, 2015
The future of financial services marketing will be nothing like today. Change is unavoidable because the generation that is now taking control of wealth and investable assets has attitudes to managing money that are little short of revolutionary. As Affluent Millennials become a priority audience for financial services brands, those brands will need to adapt rapidly to their expectations about the form money takes, the way it is managed and the companies they trust to manage it. That’s why LinkedIn has partnered with Ipsos for a unique, in-depth global study, Winning Affluent Millennials, that explores how the attitudes to wealth amongst Affluent Millennials sets them apart.
We interviewed more than 800 UK internet users who were either Millennials (born from 1981 to 1997) or members of Generation X (born from 1966 to 1980). Our aim was to explore the differences in attitudes between the two age groups – and also the differences between Affluent Millennials who have more than £75,000 in investable assets, and the rest of their generation. This week, we’re releasing the UK results from the research, with more detailed studies of France and The Netherlands to come later this year. The conclusion is a clear one: Affluent Millennials are noticeably more informed, progressive and confident than those around them.
Affluent Millennials’ confidence is based on realism, practicality and a proactive attitude to finance. They are more likely than any other group (39%) to anticipate another financial crisis, but despite this they are also more likely to express confidence in future economic growth (35% do so, versus 22% amongst affluent Gen-Xers). They are also more focused than previous affluent generations on immediate goals such as improving their credit score, owning their own home or starting a business – and they believe strongly that the decisions they take now will have a huge bearing on their wealth in the future. They are more confident about performing their own research and taking their own financial decisions, but also more loyal to financial institutions once they start working with them.
What does this powerful new persona mean for financial services brands and their marketing teams? Our study shows the key changes they will need to make as Affluent Millennials become their primary audience – but also the most important opportunities that will emerge from the generational shift:
- Affluent Millennials are 5x more likely than any other group to see social media as their hub for financial information in the future. And they are twice as likely to get their financial information from social platforms today - Share on LinkedIn or Twitter
- They envision a virtual, social-based economy where alternative currencies like Bitcoin are regularly used, virtual wallets wholly replace credit cards, and social networks are the definitive source of financial guidance - Share on LinkedIn or Twitter
- More than half are willing to consider financial offerings from non-financial brands - Share on LinkedIn or Twitter
- Despite their wealth, three out of every five Affluent Millennials have not yet started saving for retirement – and the majority have not yet started investing - Share on LinkedIn or Twitter
Look out for more posts exploring the full implications of this unique new study for financial services marketing. We’ll look at how social is becoming the primary proving ground for financial brands – and we’ll explore the strategies best suited to engaging Affluent Millennials.