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Winning Millennials: How This New Power Persona is Reshaping The Finance IndustryAustralia│ July 2015
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Methodology
AUSTRALIA RESULTSThis report covers results from 802 total respondents in Australia, including:
501 total Millennials (incl. 101 Affluent) and 301 total Gen X (incl. 104 Affluents).
GLOBAL SURVEY
20 minute online survey, fielded by LinkedIn and Ipsos in April 2015.
Survey measured usage, engagement, attitudes and opinions on financial services.
GLOBAL SAMPLE
9,200 respondents in 10 countries: United States, Canada, United Kingdom, France, Netherlands, Australia, India, Singapore, Hong Kong and Brazil.
Quota sampling/weighting applied to represent Internet users in each market.
CRITERIA
Respondents were Millennial (18-34) and Gen X (35-49) Internet users.
In Australia, Affluent is defined as AU$100K+ net investible assets, excluding real estate.
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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.
R E S E A R C H O B J E C T I V E S
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Key Findings Summary
AFFLUENT MILLENNIALS ARE…
ETERNAL OPTIMISTS
Progressive view of future finance industry, confident about own financial future – make decisions now for future success.
Demonstrate strong trust and loyalty with their current financial services providers.
ENGAGED DECISION-MAKERS
Prefer to act as “validators” when making financial decisions: do research on their own, validate with advisor.
Value the ability to manage their own finances using technology, particularly on mobile.
OPEN MINDED
Despite being loyal customers, most Affluent Millennials would switch financial companies if presented with better solutions.
Affluent Millennials are especially open to financial offerings from non-financial brands.
SOCIAL-CENTRIC
Social networks are a must-have and central to Affluent Millennials’ financial decisions.
Especially likely to visit financial company ‘s page and seek relevant content from financial companies on social.
HUNGRY FOR EDUCATIONAL INFO
Top content includes thought leadership, educational content, expert commentary.
Significantly more likely to acquire educational content relevant to their financial needs through social networks.
A M B I T I O U S , P R O G R E S S I V E & C O N F I D E N T:
How This New Power Persona Is Reshaping The Finance Industry
While these views are still a minority across all groups, Affluent Millennials are especially likely to envision a future with automatic debt pay-down through earnings and banks no longer being their primary financial institutions.
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Affluent Millennials have a uniquely progressive view of future financial conditions
TOP 3 POINTS OF VARIATION IN FUTURE PREDICTIONS:
Automatic debt pay-down through earnings
17%
26%
16% 15%
Banks will no longer be primary financial institutions
18%
25%23%
21%
Social network accounts as the hub of your financial
information
15% 16%
9%11%
Millennials GenXersAffluent Millennials Affluent GenXers
Affluent Millennials are less likely to anticipate another financial crisis, perhaps in turn driving their higher confidence in Australia’s future economic growth and resulting opportunities for personal financial success.
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Affluent Millennials have especially high confidence in economic growth
28%
36% 35%
47%
I anticipate another financial crisis to occur
Millennials GenXersAffluent Millennials Affluent GenXers
I am confident in my country's future economic growth
I believe the Australian Dream* is “definitely possible”
20%
39%
13%18%
14%
23%
12%18%
*The Australian Dream or Great Australian Dream is a belief that in Australia, home-ownership can lead to a better life and is an expression of success and security .
% Agree: My future success depends on the decisions I make now
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Affluent Millennials believe their current decisions will drive future success
MILLENNIALS GE NXE R S
Tota l : 46% Tota l : 35%Affluent : 54% Affluent : 48%
9
0.11
0.05
0.12
0.11
Affluent Millennials
Affluent GenXers
Short-term goal
Long-term goal
Short-term goal
Long-term goal
START A BUSINESSBUY A FIRST HOME
Affluent Millennials set ambitious goals for their lives
0.16
0.02
0.12
0.11
Affluent Millennials
Affluent GenXers
Short-term goal
Long-term goal
Short-term
Long-term goal
NET 28%
NET 13%
NET 26%
NET 11%
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Affluent Millennials far outpace Affluent GenXers in international education
Millennials GenXersAffluent Millennials Affluent GenXers
PAST[ HAVE ALREADY DONE THIS ]
FUTURE[ PLAN TO DO THIS IN NEXT FEW YEARS ]
18%
13%
38%
31%
5%
5%
6%
5%
7%
11%
16%
18%
4%
6%
10%
14%
Travel abroad for further
EDUCATION
Travel abroad for a
GAP YEAR
I N D E P E N D E N T, Y E T S E E K I N G G U I D A N C E :
For Affluent Millennials, Their Financial Future Starts Now
Sources of affluence are shifting across generations
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Compared to Affluent Gen X, Affluent Millennials are especially likely to have gained assets from:
2.5xSUPERANNUATION
2.7xWAGES (FAMILY BUSINESS)
3.4xINHERITANCE / TRUST FUND
*Excluding mortgage
Affluent Millennials are more than twice as likely as Affluent Gen X to have at least one non-mortgage loan* (50%, 21%).
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Affluent Millennials are more likely to carry debt
HAVE AT LEAST ONE…
Personal loan Student loan Business loan
21%24%
7%
32%
27%
19%
8%6%
1%
Millennials Affluent Millennials Affluent GenXers
19X
Nearly 1 in 3 Affluent Millennials save the majority of their pay
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Affluent Millennials are more likely to save most of their monthly paycheck% OF PAYCHECK SAVED PER MONTH
Affluent Millennials Affluent GenXers
50%+
30% 18%
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Only 1 in 10 Emerging Affluent* Millennials has a brokerage account, highlighting the importance for financial institutions to build relationships early while Millennials grow their wealth.
Affluent Millennials are on par with Affluent Gen X when it comes to brokerage account ownership, but there is significant room for opportunity
*Emerging Affluent = $25K-$100K in investible assets
Affluent Millennials Affluent GenXers
23%
22%
HAVE AT LEAST ONEBROKERAGE
ACCOUNT
40%
30%
HAVE MORE THAN ONE SUPERANNUATION
ACCOUNT
vs. 24% of all GenX
vs. 23% of all Millennials
ACCOUNT OWNERSHIP:
42%
48%
Affluent Millennials seek greater involvement and control in financial decisions
51% 50%
43%40%
AF
FL
UE
NT
M
ILL
EN
NIA
LS
AF
FL
UE
NT
G
EN
X
MIL
LE
NN
IAL
S
GE
NX
51%
16
V A L I D A T O RConduct their own research and
investment decision
S O L O I S TPerform their own research, make decisions,
and execute trades
38%40%
AF
FL
UE
NT
M
ILL
EN
NIA
LS
AF
FL
UE
NT
G
EN
X
MIL
LE
NN
IAL
S
GE
NX
MIL
LE
NN
IAL
S
GE
NX
0.08
0.26
0.33
0.51
0.6
0.24
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 advisor for their current assets.
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Affluent Millennials are more than three times as likely to consider financial advisors a current “must-have,” compared to Affluent GenX
AFFLUENT MILLENNIALS
AFFLUENT GENXERS
Must-have Nice to have Unimportant
Must-have Nice to have Unimportant
A FINANCIAL ADVISOR IS A…
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The majority would be willing to take their business elsewhere if presented with better solutions, but Affluent Millennials are more likely to stay loyal to financial institutions once they’re customers.
Affluent Millennials are loyal to financial companies they work with
20%
30%
61%
60%
20%
11%
Somewhat loyal:would take business elsewhere for better products or services
Very loyal:plan to do business with them in the next few years
Not loyal: actively seeking to switch business to other companies
AFFLUENT MILLENNIALS
AFFLUENT GENXERS
90%
76%
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Affluent Millennials Affluent GenXers
Affluent Millennials’ loyalty as customers isn't surprising when we see that they are more likely to trust financial institutions they work with.
% WHO TRUST THEIR CURRENT FINANCIAL INSTITUTIONS
*Trust = 50% or higher
20
46%
52%
29%31%“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
Affluent Millennials are open to financial offerings from non-financial brands
H I G H E X P E C TAT I O N S & B I G D E M A N D S :
Affluent Millennials Want A Deeper ConnectionWith Financial Services Providers
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When choosing financial institutions, social presence and relationship history are uniquely important to Affluent Millennials
ONLINE REPUTATION
Company has positive online
buzz
SOCIAL PRESENCE
Company has a page
on various social platforms
INFLUENCEMembers of your
family use the financial institution
MISSIONCompany has a
social mission and contributes to social causes
SERVICECompany provides online live chat for customer service
questions
TOP 5 FACTORS OF UNIQUE IMPORTANCE TO AFFLUENT MILLENNIALS
5X AS LIKELY2X AS LIKELY
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One in three Affluent Millennials considers social networks a “must-have”
20%
18%
33%
30%
39%
42%
49%
48%
41%
41%
18%
22%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:
Use social networks to inform finance /
Investment decisions
2xVisit a financial
company’s page on a social network
3.4x Seek content from financial companies
on social networks
2x
% of affluent users that use at least 1 social network to obtain this type of info
Thought leadership, educational content, and product reviews are top content for Affluent Millennials on social networks
THOUGHT LEADERSHIP
71%
27%
Affluent Millennials Affluent GenXers
EDUCATIONAL CONTENT ABOUT PERSONAL LOANS
56%
11%
EXPERT OPINIONS OR COMMENTARY
50%
14%
25
2.5X
5X 3.5X
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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
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Optimize the Opportunities
• Affluent Millennials are hungry for information that can be directly applied to their specific financial situation and they are looking for it within social networks.
• Financial services providers should leverage the social networks to provide relevant content.
• Earn trust and build relationships with Affluent Millennials by delivering the balance of expert advice and encouraged independence they crave.
• Transform the customer relationship by becoming vital resources that support customers daily activities:*• Advice provider• Access facilitator• Value aggregator
• Financial services providers should reach out to Affluent Millennials now and build relationships with them before the non-traditional competition is able to.
• Earn their trust and secure their loyalty now and the outsider brands won’t have a chance.
• 1 in 10 Emerging Affluent Millennials has a brokerage account.
• Financial services providers should build relationships with Emerging Affluent Millennials now and earn the long-term loyalty as their wealth grows and they become truly Affluent Millennials.
• 1 in 3 Affluent Millennials do not have retirement accounts.
• Establish relationships with Affluent Millennials now, becoming their trusted advisors to help cast a vision and execute a plan for retirement.
OPPORTUNITY 1
PERSONALIZE AND SOCIALIZE
OPPORTUNITY 2EXPERT ADVICE TO ESTABLISH TRUST
OPPORTUNITY 3ESTABLISH LOYALTY EARLY
OPPORTUNITY 4BUILD RELATIONSHIPS NOW
OPPORTUNITY 5RETIREMENT PLANNING
Opportunities available to financial services providers to successfully navigate potentially tumultuous times and even thrive through it all.
* Accenture:-2015 North America Consumer Banking Survey
T H A N K Y O U
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