Millennials are not strictly the digital generation, but they are often online.
Avoid starting with a hard sales pitch when marketing financial services to millennials.
Many millennials are focused on managing and paying off debt.
Millennials show a high level of brand loyalty.
Establish clear communication channels for financial advice, including phone and social media.
Build a brand that millennials trust with their data and finances.
The oldest millennials are already in their late 30s, yet many financial institutions struggle to market to them effectively. According to Pew Research, millennials were born between 1985 and 1996 (although this can vary), making up 22% of the population or over 80 million people, with a spending power exceeding $200 billion. Millennials are a significant market force.
What Do Millennials Want from Banks?
Despite this, marketing financial services to millennials remains a contentious issue, as many banks still focus on baby boomers or skip this generation to target Generation Z instead.
Millennials often face financial challenges, including debt, and have strong saving intentions due to the 2008 financial crisis. With better jobs, they can invest in housing, savings, and travel. Financial marketing to millennials should emphasize emotional appeal, trust-building, and making the right services easily accessible.
Understanding millennials’ banking habits and preferences is crucial for effective marketing strategies.
Effective Strategies for Marketing Financial Services to Millennials:
1. Strengthen Your Digital Presence
Millennials are not solely digital natives, but they are frequently online. They demand digital services, from apps to chatbots, making a robust digital presence essential. For instance, millennials prefer digital banking services and apps that offer a comprehensive suite of services, reducing the need for in-person bank visits.
Studies show that while 27% of millennials never visit bank branches, 18% are smartphone-only internet users, and they represent about 43% of all mobile banking users. They prefer online chats and chatbots over human assistants. Providing self-service solutions on apps and websites, allowing online sign-ups, and offering control over service choices can help millennials connect with your brand without forced interactions.
2. Build Relationships Instead of Focusing on Sales
Relationship marketing involves building trust through valuable services and customer contact. Innovative connections through social media, apps, and consistent customer service can help. Avoid starting with hard sales pitches. Community outreach programs, such as free workshops on savings or debt management, allow personal connections before introducing products or services.
Offering consistent value, even if it means recommending more affordable products, helps build long-term relationships.
3. Address Debt Concerns
Many millennials are burdened with debt, including student loans, and struggle to invest in homes. Marketing campaigns should focus on debt management and payoff solutions, as well as savings and wealth management. A study showed 46% of millennials believe they have too much debt and are interested in learning about managing and reducing it.
4. Appeal to Emotions
Millennials are the most brand-loyal generation, and emotional appeals can strengthen this loyalty. They are less focused on personal wealth and more on doing good and investing in others. Financial marketing strategies should highlight money for family, children, and charity. Relevant topics include student debt, mortgages, budgeting, and money management.
5. Utilize Social Media Storytelling
Social media is vital for financial marketing, especially to millennials. LinkedIn is prominent for investment finance, with millennials sharing more finance-related content there. However, presence alone isn’t enough. Millennials seek personal advice on savings, budgeting, and credit cards, and they reach out via social media or chat for guidance. Sharing stories, advice, and success stories while providing personalized advice can attract and retain customers.
6. Create a Trustworthy Brand
Millennials seek brands they can trust with their data and money. They are brand loyal once trust is established through personalized connections and services. Offering honest, personalized services rather than big promises is key. Fintech companies often provide unbundled services, allowing customers to add features based on their needs.
Transparency about fees, waiving service fees, and offering custom services can help build trust. Retaining millennial customers is as important as attracting them. Millennials are likely to switch banks, so providing consistent, genuine services and maintaining the brand’s original promises is crucial.
Deliver Personalized Financial Education
Provide personalized financial education programs using a mobile-first platform like EVERFI, offering engaging content and interactive exercises. This approach helps gain insights into consumer interests and offers relevant financial education tailored to their life stage and goals.
