Gen Y’s Banking Preferences

Given that the world is largely dominated by the millennials at present, every aspect of daily living is adjusting, including management of finances. Even the simple act of checking your balance has kept up with the tech-savvy generation whose choices are mostly influenced with the evolution of devices and web.

Today, modernization has also glazed the field of banking, in which non-traditional procedures have emerged. Their options in terms of handling their funds differ widely from past generations, as they adopt more diverse and alternative strategies.

The millennials are likely the group that chooses to complete their every transaction via a digital avenue more than any other age range. According to a report done last year, more than half of this crowd transfers their cash, track their savings, and oversee any fraudulent activity using a wireless channel, mostly through a mobile phone. Furthermore, emerging practices is being highly appreciated everyday by these user category, despite being subject to various alterations and developments. Analysts also forecast these techniques to flourish along with the population’s growth, with the penchant for mobile banking being retained over the years.

To prove this hypothesis, a recent survey revealed that 32% of the Y generation utilizes electronic wallet services provided by different technology companies. Also a method gaining popularity nowadays is the P2P or peer to peer lending. This enables individuals to lend and borrow money directly from one another and is famous for its win-win feature. Each side is advantageous because returns are greater than risks for lenders, while borrowers are able to acquire more favorable loan agreements and rates than the typical way of negotiating.

Overall, millennials usually go for procedures that give them greater control of their finances, especially since they have grown in an atmosphere that led them to distrust the conventional banking manner. This has resulted to them opting for a lesser bank exposure as half of them pick to go over their money business using a phone or computer. Around 68% of them also predict that in the upcoming decades, cash access will be completely different, while a third believe the necessity of actual banks will be retained.