live webinar: winning affluent millennials
TRANSCRIPT
Winning Affluent MillennialsHow this power persona is reshaping the industry
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Before we get started…
Recorded? Of course!
Emily Friedman
Senior Global Research ConsultantLinkedIn Insights
Research Study Methodology
GLOBAL SURVEY20 minute online survey, fielded by LinkedIn and Ipsos in April 2015.
Survey measured usage, engagement, attitudes and opinions on financial services.
GLOBAL SAMPLE9200 respondents in 10 countries: US, CA, UK, FR, AU, NL, IN, SG, HK and BR.
Quota sampling/ weighting applied to represent internet users in each market.
CRITER IA
Respondents were Millennial (18-34) and Gen X (35-49) Internet users.
In the US, Affluent is defined as $100K+ net investible assets, excluding real estate.
US RESULTS
This report covers results from 1507 total respondents in the US, including:
1004 total Millennials (incl. 121 Affluent) and 503 total Gen X (incl. 150 affluent).
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Understand the differences between Millennials and Gen X with regard to brand
affinity, purchase process and
information-gathering.
Comprehend the role that social media plays and
the influence that content and context has on the
decision journey for retail financial products.
Examine the subset of Affluent Millennials to
understand their unique mindset, behaviors and expectations.
Research Objectives
Why are Affluent Millennials relevant?
AFFLUENT MILLENNIALS IN THE US
15.5 MILLION Spend $2 TRILLION annually
$59 TRILLION intergeneration
al wealth transfer
- *A Golden Age Of Philanthropy Still Beckons: National Wealth Transfer and Potential for Philanthropy Technical Report; Center of Wealth and Philanthropy ; Boston College; May 2014- *Affluent Population Expands in Size, Spending Power & Marketplace Importance
While these views are still a minority across all groups, Affluent Millennials are especially likely to envision a cashless, sharing-based economy where banks are no longer their primary institutions.
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Affluent Millennials have a uniquely progressive view of future financial conditions
TOP 3 POINTS OF VARIATION IN FUTURE PREDICTIONS:
Cashless society-currency no longer used for transactions
19%
32%
21% 23%
Banks will no longer be primary financial institutions
19%
27%
18% 18%
A sharing-based economy
10%
24%
8% 9%
Millennials GenXersAffluent Millennials
Affluent GenXers
While more than half of both affluent groups anticipate another financial crisis, Affluent Millennials are significantly more likely to be confident in future economic growth and believe the American Dream* is definitely possible.
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Despite high expectations of a future financial crisis, Affluent Millennials are unparalleled in confidence
*The American Dream is typically defined as the ideal that every individual should have an equal opportunity to achieve success and prosperity through hard work, determination and initiative.
36%
59%
44%51%
I anticipate another financial crisis to occur
I am confident in my country's future economic
growth
I believe the American Dream* is “definitely
possible”
24%
47%
18%
29% 25%
44%
23%28%
Millennials GenXersAffluent Millennials
Affluent GenXers
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Affluent Millennials
Affluent GenXers
START A CHARITABLE FOUNDATION
START A BUSINESS
BUY A SECOND HOME
Affluent Millennials set ambitious goals for their lives
3X
3X19%
30% 27%
6%11%
18%
Two-thirds of Affluent Millennials have at least one loan* compared to half of Affluent Gen X
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Affluent Millennials are more likely to carry debt
*Excluding mortgage
HAVE AT LEAST ONE…
Credit card with a balance
Personal loan Student loan Business loan
50%
18%
42%
8%
67%
43% 43%35%
52%
16%
29%
4%
44%
18%23%
5%
Millennials GenXersAffluent Millennials
Affluent GenXers
7X
2X
Over 1/3 of Affluent Millennials save most of their paycheck 11
Compared to Affluent Gen Xers, Affluent Millennials are twice as likely to save the majority of their paycheck each month% OF PAYCHECK SAVED PER MONTH
Affluent Millennials
Affluent GenXers
50%+25%+
66%
35%31% 12%
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Affluent Millennials seek greater involvement and control in financial decisions
51% 47%41%
38%34%
50%
34%40%
AFF
LUEN
T M
ILLE
NN
IALS
AFF
LUEN
T G
ENX
AFF
LUEN
T M
ILLE
NN
IALS
AFF
LUEN
T G
ENX
MIL
LEN
NIA
LS
GEN
X
MIL
LEN
NIA
LS
GEN
X
51%
S O L O I S TPerform their own research, make
decisions and execute trades
V A L I D A T O RConduct their own research and
investment decision
0.27
0.37
0.48
0.5
0.25
0.13
Despite their tendency to do their own research and seek information on financial decisions, Affluent Millennials are particularly likely to see value in having a financial advisors for their current assets.
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Affluent Millennials consider financial advisors a must-have
AFFLUENT MILLENNIALS
AFFLUENT GENXERS
Must-have Nice to have
Unimportant
Must-have Nice to have
Unimportant
A FINANCIAL ADVISOR IS A…
More than half of Affluent Millennials with multiple checking accounts hold all of these at the same financial institution.
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Once they are customers, Affluent Millennials are highly loyal to their financial institutions
AMONG THOSE WITH MULTIPLE ACCOUNTS OF EACH TYPE, % WHO HOLD ALL WITH THE SAME INSTITUTION:
Affluent Millennials are significantly more likely to say they are very loyal and plan to do more business with financial institutions they work with.
C H E C K I N G
AFFLUENT MILLENNIALS: 54%AFFLUENT GENXERS: 33%
B R O K E R A G E
AFFLUENT MILLENNIALS: 37%AFFLUENT GENXERS: 23%
S AV I N G S
AFFLUENT MILLENNIALS: 39%AFFLUENT GENXERS: 28%
R E T I R E M E N T
AFFLUENT MILLENNIALS: 42%AFFLUENT GENXERS: 24%
27%
47% 5
9%
48% 1
4%
6%
Somewhat loyal
Very loyal Not loyal
AFFLUENT MILLENNIALS
AFFLUENT GENXERS
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Affluent Millennials are open to financial offerings from traditionally non-financial brands.
57%
69%
47% 47%
“Millennials are different. They have grown up empowered and expect to have a more self-directed life. So they are looking for solutions, not products.”
- Mohamed El-Erian, Chief Economic Adviser, Allianz
MillennialsGenXers
Affluent MillennialsAffluent GenXers
% WHO WOULD TRY FINANCIAL OFFERINGS FROM NON-FINANCIAL BRANDS
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1 in 3 Affluent Millennials uses Apple Pay or Google Wallet; more than 3X vs. Affluent Gen X
Affluent Millennials have high adoption of NFC mobile payment platforms
BRAND BIZ: Which of these companies do you currently use?Base: All Respondents - Millennials (n=1,505), Gen X (n=805), Affluent Millennials (n=165), Affluent Gen X (n=254)
indicates significant difference at 95% level of confidence
Millennials GenXersAffluent Millennials
Affluent GenXers
12%
34%
8% 7%
16%
31%
10% 11% 9%
25%
3%6%
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When choosing financial institutions, social presence and relationship history are uniquely important to Affluent Millennials
TOP 5 FACTORS OF UNIQUE IMPORTANCE TO AFFLUENT MILLENNIALS
2X AS LIKELY TO BE IMPORTANT TO AFF. MILLENNIALS, VS. AFF. GENX:
SOCIALCompany has a
page on various social platforms
RELATIONSHIP
First financial institution you had
an account with
INFLUENCEMembers of your
family use the financial institution
SOCIAL PRESENCECompany has positive online
buzz
PURPOSECompany has a
community mission you care about
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Affluent Millennials consider social networks a must-have
24%
24%
39%
26%
43%
45%
51%
50%
33%
31%
10%
25%MILLENNIALS
GENXERS
AFFLUENTMILLENNIALS
AFFLUENTGENXERS
Must-have Nice to have
Unimportant
Must-have Nice to have
Unimportant
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Social networks are central to Affluent Millennials’ financial decisionsCOMPARED TO AFFLUENT GEN X, AFFLUENT MILLENNIALS ARE MORE LIKELY TO:
3x
3x 2x
2x
Think social networks will be the
hub of their financial
info in the future
Visit a financial company’s page
on a social network
Use social networks
to inform finance /Investment decisions
Seek content from financial
companies on
social networks
% of affluent users that use at least 1 social network to obtain this type of info
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Peer opinions, thought leadership and product reviews are top content for Affluent Millennials on social networks
91%
55%
AFFLUENTMILLENNIALS
AFFLUENTGENXERS
92%
43%AFFLUENT
MILLENNIALSAFFLUENTGENXERS
84%
38%AFFLUENT
MILLENNIALSAFFLUENTGENXERS
P E E R O P I N I O N S
T H O U G H T L E A D E R S H I P
P R O D U C T R E V I E W S
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Affluent Millennials are especially active on LinkedIn
COMPARED TO THE GENERAL POPULATION ON LINKEDIN,AFFLUENT MILLENNIALS ON LINKEDIN HAVE:
CONNECTIONS
COMPANY FOLLOWS
GROUP ACTIVITY
SHARES FINANCE TOPIC
SHARES
2X AS MANY 13X AS MANY
LinkedIn global behavioral data, May 2015
Q&A
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business.linkedin.com/marketing-solutions/agency
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