Millennial Customers Stressed by Personal Finances, Moving Banks for Better Interest Rates and Fees
Millennials are more likely than older customers to be stressed about their personal financial condition, with 41% having high or moderate stress.
- Almost one in five Millennials (19%) are dissatisfied with their current personal financial condition, and struggle with managing their finances.
- Concerningly, 23% of Millennials say their bank’s support to help them make better financial decisions is poor or just okay.
- 16% of Millennials have switched banks in the past 12 months, four times that of older customers (4%).
- 20% of Millennials intend to switch banks in the future, motivated by noncompetitive interest rates (36%), high fees (20%) and inconvenient branch locations (19%).
Millennials account for 32% of Australian bank customers and are a valuable age group with which banks can develop longer-term relationships. For banks to remain relevant to Millennial customers, they must acquire a deeper understanding of the banking behaviour of this generation.
In addition, Millennials have been particularly affected by the COVID-19 pandemic, highlighting a need to understand the financial health of Millennial customers and the financial wellbeing support offered by banks. J.D. Power explores Millennial customers using findings from the 2020 Australia Retail Banking Satisfaction Study and a pulse survey conducted during the COVID-19 pandemic. Following are the key findings.