FIs failing to connect with millennials

Banks and credit unions are apparently still having problems communicating effectively with millennial generation consumers, which presents more opportunities for prepaid card providers to win over those younger consumer groups. New research from the multinational banking conglomerate BNY Mellon, in association with the University of Oxford, found that millennial consumers (individuals from about 18 to 34 years old) are much more likely to seek financial advice from parents than from financial institutions.

In The Generation Game: Savings for the New Millennial, researchers discovered that 52 percent of younger consumers will ask their parents for financial advice, while only 24 percent look to banks for help. Janet Smart, Undergraduate Course Director at Saïd Business School at the University of Oxford, said the research "reveals the disconnect that the financial services industry has with this generation. The challenge for insurers is to find new ways to engage millennials, so as to improve their level of financial understanding and build their commitment to retirement planning."

Another research finding is that 59 percent of millennials believe that financial service providers have not marketed products specifically to them. "Millennials want products that demonstrate clearly that they are being rewarded for tying up their money," the researchers said.

But millennials would rather marketers not contact them via social media, with less than 1 percent wanting communications through that channel. "Rather than being the solution for helping insurers engage with millennials, many told us they think it makes them look 'silly', 'pally' or 'creepy'," said Saïd Business School Economics and Management major Shayantan Rahman, who was the lead student researcher for the report.

The report was based on 1,178 millennial consumers who participated in a survey conducted by millennial-aged students from Saïd Business School.

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