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Millennial Money Mindset Report
2016
In Partnership With
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
Executive Statement The mindset of millennials is forcing traditional financial institutions to innovate and change the way they deliver services to this rising generation. New financial technology startups, known as disruptors, are opening the eyes of this “connected” generation and changing the financial experience. Millennials’ wants and expectations of their financial institution are evolving and creating a new opportunity within the industry. There is a plethora of data on millennials and how they are different from previous generations. Our objective with this study was to assess their mindset regarding their finances and how their wants and behaviors may be changing. The results collected in this study present both a problem and an opportunity for traditional financial institutions. The problem is that an overwhelming number of millennials are willing to switch financial institutions. More importantly, higher income millennials are wanting more from their financial institution and are willing to switch primary financial institutions. The reality for a traditional financial institution is that the next generation of consumers want more and are willing to go somewhere else to meet their needs. Thus, institutions that can adapt and meet the needs of millennials have much to gain. As we did in 2015, we have made the results of this study public. The goal is to help the financial services industry better understand the mindset, needs, and behavior of millennials to spur development and/or adoption of solutions that are appropriate for the next generation of consumers.
Method The results released in this report are based on a nationwide online survey of 500 randomly selected Americans between the ages of 21 and 35, collected January 12 through January 16, 2016. Respondents were randomly selected using a nationwide sample panel from Qualtrics. With a sample of 500 respondents, we can say with 95% confidence that the amount of survey error due to taking a random sample instead of surveying all members of the population is ± 4.4%.
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
Key Observations Millennials plan to purchase financial products: • 70% indicated that they will purchase or open a financial product in the next 12 months. • Top products to be purchased or opened include:
o Credit Card (37.6%) o Checking Account (36.2%) o Savings Account (36%) o Auto Loan (18.2%) o Life Insurance (15.4%) o Mortgage (14.4%).
• Less than 5% of millennials do not have a relationship with a primary financial institution. They are switching or considering switching primary financial institutions. • 18.6% of millennials have switched primary financial institutions in the past 12 months.
o 28.8% of millennials that make over $75,000 have switched in the past 12 months.
• 36% are likely or very likely to switch primary financial institutions in the next 12 months. o 55.5% of millennials that make over $75,000 are likely or very likely to switch primary
financial institutions in the next 12 months.
They are turning to sources other than their primary financial institution for products and advice. • 30.6% of millennials have added a financial product from an institution other than their primary
financial institution. o 53.4% of millennials that make over $75,000 have added a financial product from an
institution other than their primary financial institution.
• 61% have turned to family members for advice. 38% have turned to friends.
• 27% have used an app or online tool for financial advice. • 27% of millennials have turned to a professional advisor (financial planner, CPA, attorney or stock
broker) for advice.
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
They have multiple financial relationships. • 31% have added a financial product from a provider other than their primary financial institution. • Millennials making more than $95,000 have a relationship with (on average) over 4 financial
institutions. They want the old and the new. • 61.3% stated that branch location was an important factor when shopping for financial products
or an institution.
• 58.9% cited online banking tools as an important factor. • Branch Location (23%), Customer Service (15.4%) and Online Banking Tools (13.8%) were cited
as the MOST important factor. They have challenges. • Biggest financial challenges for millennials include:
o Making enough money (59.2%) o Staying on budget (40.6%) o Managing debt (30.6%) o Developing a budget or financial plan (26%).
They have goals and are paying down debt. • Top goals for millennials in 2016 include:
o Save for a vacation (55.2%) o Increase savings (52.8%) o Pay down debt (42.4%) o Save for a large purchase (39.8%) o Buy a car (36.2%) o Make home improvements (31.2%).
• 70% of millennials indicated that they had debt.
• Total average debt for all respondents was $43,264, down from $47,689 in 2015 study.
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
• Average debt by age range:
o 21-25 = $13,116 (Down $1,029 from 2015 study) o 26-30 = $46,622 (Down $2,546 from 2015 study) o 31-35 = $69,552 (Down $11,473 from 2015 study).
• Only 19% have a comprehensive financial plan to achieve their goals. They want help and tools. • 75% wished their financial institution offered more guidance and tools to help them manage their
finances. • 81% of millennials would use an app or online tool offered by their financial institution if it
provided comprehensive advice and helped them achieve their goals and manage their debt. o 91% of respondents who make $95,001+ indicated that they would be interested in using
a financial app that helped them manage their finances and achieve their goals. • Only 12.2% of millennials do not use the online tools provided by their primary institution.
• Only 17% of respondents indicated they needed to meet with someone in person to be
comfortable with financial advice. *To view the 2015 Millennial Money Mindset Report, please go to iQuantifi.com.
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
Demographics 1. In what year were you born?
Age Range %
22-26 23.0%
27-31 36.6%
32-36 36.6%
2. What is your gender?
Female 49%
Male 51%
Female
Male
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
3. What is your marital Status?
4. How Many dependents do you have (children under the age of 18 who live with you)?
Relationship 11%
Single 34%
Engaged 9%
Married 46%
Relationship
Single
Engaged
Married
None 41%
1 22%
2 24%
3 8%
4+ 5% None
1
2
3
4+
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
5. What is your total household income?
Income Range %
Less than $25,000 28.2%
$25,000-$35,000 11.4%
$35,001-$45,000 8.2%
$45,001-$55,000 8.8%
$55,001-$65,000 6.6%
$65,001-$75,000 7.6%
$75,001-$85,000 8.0%
$85,001-$95,000 4.0%
$95,001+ 17.2%
Total 100.0%
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
Products 6. Do you expect to purchase or open any of the following products in the next 12 months?
(Select all that apply)
7.2%
6.2%
10.6%
4.6%
4.6%
15.4%
7.8%
18.2%
14.4%
37.6%
36.0%
36.2%
29.6%
0.0% 10.0% 20.0% 30.0% 40.0%
Home Equity Line of Credit
Brokerage Account
Retirement Account
Disability Insurance
Payday Loan
Life Insurance
Student Loan
Auto Loan
Mortgage
Credit Card
Saving Account
Checking Account
None of Above
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
7. Have you switched primary financial institutions (your primary bank or credit union) in the
past 12 months?
8. How likely are you to switch primary financial institutions in the next 12 months?
N/A 4.6% Yes
18.2%
No 77.2%
N/A
Yes
No
13.4%
23.0%
36.8%
26.8%
0.0% 10.0% 20.0% 30.0% 40.0%
Very Likely
Likely
Unlikely
Very Unlikely
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
9. Have you added a financial product from an institution other than your primary financial
institution in the past 12 months?
10. Thinking about all of the financial products you currently have/use (checking, savings,
credit card, mortgage, student loan, life insurance, investment account, etc.) how many different financial institutions do you have a relationship with?
Yes 30.6%
No 69.4%
Yes
No
34.40%
21.80%
18.20%
10.80%
6.20% 4.60%
0.80% 1.00% 0.40% 1.80%
0.0%
10.0%
20.0%
30.0%
40.0%
1 2 3 4 5 6 7 8 9 10+
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
11. When shopping for financial products or a relationship with a financial institution, which of
the following factors are important to you? Select all that apply.
Factors %
Branch Location – Branches or locations near for you 61.3%
Online Banking Tools 58.9%
Customer Service 52.5%
ATM Location(s) 49.1%
Convenience 46.5%
Mobile Banking – Ability to purchase and manage entirely online 41.8%
Rates or Products Offered 34.5%
Incentive to Join 26.2%
Relationship with Bank/Advisor 18.4%
Recommendation from a Friend/Peer Review 14.9%
Mission and Community Focus of Organization 6.5%
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
12. When shopping for financial products or a relationship with a financial institution, which
factor is most important to you?
0.6%
12%
11.2%
7.8%
6%
4.2%
3%
3%
13.8%
15.4%
23%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Mission and Community Focus of Organization
Rates for Products Offered
Mobile Banking - Ability to purchase and manage entirely online
Convenience
ATM Location(s)
Incentive to Join
Relationship with Bank/Advisor
Recommendation From a Friend/Peer Review
Online Banking Tools
Customer Service
Branch Location - Branches or locations near you
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
13. What is the APPROXIMATE amount (ballpark amount is ok!) of your total current debt
(Including student loans, credit cards, mortgage, etc.) If none, enter 0.
Age Range Average Debt
22-26 $12,087.15
27-31 $44,076.36
32-36 $58,049.83
14. Thinking about your personal financial institution, what would you say are the biggest challenges when it comes to your finances? Select all that apply.
11.2%
40.6%
30.6%
26.0%
59.2%
20.4%
16.8%
15.2%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
None - I have no financial challenges
Staying on budget/plan
Managing my debt
Developing a budget or financial plan
Making enough money
Understanding where/how to invest my money
Understanding where to start to accomplish my financial goals
Knowing what to do regarding my finances
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
15. What are your immediate financial goals for 2016, as well as your financial goals for the
next 3-5 years? Check all that apply.
Goals 2016 Next 3-5 years
Save for a vacation 55.2% 28.2%
Pay down my credit card debt 42.4% 21.8%
Use credit card less 36.6% 19.8%
Get a new job 36.4% 23.2%
Save for a house (save for a down payment on a house) 30.4% 36.6%
Get out of debt (pay off all my debt) 29.6% 39.4%
Travel abroad 20.6% 32.0%
Pay down my student loan 18.6% 32.0%
Purchase a house (I have the down payment saved. Now I plan to actually buy a house) 18.6% 29.4%
Move to a new city 16.8% 20.4%
Move out of my parents’ house 16.4% 14.2%
Increase my overall level of savings 52.8% 46.2%
Save for large purchases (computer, TV, etc.) 39.8% 28.2%
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
(cont.) What are your immediate financial goals for 2016, as well as your financial goals for the next 3-5 years? Check all that apply.
Buy a car 36.2% 31.6%
Make home improvements 31.8% 25.4%
Saving for retirement 29.0% 37.6%
Saving for a child’s college expenses 23.0% 32.6%
Go back to school 21.2% 22.0%
Have a baby 18.6% 27.0%
Plan for wedding / get married 13.2% 20.8%
Start own business 11.6% 21.6%
Buy an engagement ring 11.0% 13.0%
Other 2.4% 2.4%
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
Millennial Goals in the next five years:
* “Start own business” was not included in the 2015 study.
12%
4%
45%
64%
55%
67%
66%
54%
48%
35%
40%
38%
55%
58%
59%
68%
60%
34%
50%
60%
57%
48%
63%
4%
45%
50%
71%
56%
61%
48%
41%
31%
39%
22%
43%
51%
40%
68%
57%
29%
43%
55%
48%
43%
55%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Start own business
Other
Saving for a child's college expenses
Saving for retirement
Increase my overall level of savings
Save for large purchases (computer, TV, etc.)
Buy a car
Make home improvements
Have a baby
Plan for wedding/get married
Go back to school
Buy an engagement ring
Travel abroad
Get a new job
Move to a new city
Save for vacation
Get out of debt (pay off all my debt)
Move out of my parents' house
Purchase a house (I have a down payment saved)
Save for a house (Save for a down payment on a house)
Use credit card less
Pay down my student loans
Pay down my credit card debt
2016 2015
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
16. Which of the following statements apply to you? Select all those statements that describe
you or apply to you.
Statement %
I have financial goals 66%
I want to get my finances in order so I can achieve my goals 47%
I want to get my finances in order to provide peace of mind to me and my family 43%
I would be comfortable receiving financial advice only if it came from someone that I could meet with in person 20%
I have a comprehensive plan to achieve my financial goals 19%
I feel like I need help when it comes to making financial planning decisions 18%
None of these statements apply to me 9%
17. Statements Continued: Which of the following statements apply to you? Select all those statements that describe you or apply to you.
Statement %
I am comfortable managing my finances using online tools / websites 43%
I will do whatever it takes to achieve my goals 42%
I would be comfortable receiving financial advice from an online tool 39%
I lose sleep over my finances 25%
I have no idea where to start and how to get my finances in order 18%
I don’t know how to create a plan to achieve my financial goals 16%
I do not have a budget 16%
None of these statements apply to me 9%
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
18. Where have you sought financial advice in the past? Select all that apply.
1%
13%
27%
27%
31%
38%
61%
0% 10% 20% 30% 40% 50% 60% 70%
Other
I have not sought financial advice in past
App or online financial tool
Professional advisor (financial planner, stock broker, CPA, Attorney, etc.)
Blogs, websites, or other sources of information found online
Friends
Family Members
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
19. Where would you most prefer to seek out and receive financial advice? Select all that
apply.
20. Do you need a comprehensive financial plan to help you achieve your financial goals?
1%
8%
20%
21%
25%
43%
45%
0% 10% 20% 30% 40% 50%
Other
I do not intend to seek out financial advice
Blogs, websites, or other sources of information found online
Friends
App or online financial tool
Family members
Professional advisor (financial planner, stock broker, CPA, Attorney, etc.)
Yes 47% No
53%
Yes
No
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
21. If your financial institution offered a free app that provided you with a comprehensive and personalized financial plan on how to manage your debt and achieve your goals would you be interested in using it?
22. Please agree or disagree with the following statement: "I wish my primary financial
institution offered more guidance and/or tools to help me manage my finances."
Answer %
Agree 75%
Disagree 25%
Total 100%
Yes 81%
No 19%
Yes No
iQuantifi,Inc.
109 International Drive, Suite 200 Franklin TN 37067
23. In regards to online banking, my current primary financial institution provides me with:
12.2%
0.2%
3.0%
20.6%
42.0%
22.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
I do not use online tools from my primary financial institution
A terrible online experience
An online experience that needs improvement
A satisfactory online experience
A good online experience
A fantastic online experience