Millennials are Abandoning Traditional Banks

Posted by Daniel Chen on Wednesday 27 Jan 16

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Millennial Take Over

For the first time in history, the Millennial generation out number Baby Boomers in the United States 83.1 million to 75.4 million. Representing over a quarter of the entire population, their decisions and lifestyles will have a huge impact on the economy and society as a whole. At Kickfurther, we were curious about what this meant to money management as we know it.

Since Millennials represent such a huge portion of the population, several studies have been done about their trends and behaviors. Compiling several datasets and reports, we concluded a number of interesting trends in Millenials. Firstly, as an aggregate, Millennials are quickly moving away from the concepts of traditional banks. They also are moving towards modern methods of income such as Kickfurther. Wait, I thought Kickfurther is an platform to support small businesses not a bank? You’d be correct, however both are a way to secure your money and earn profit on your money. (hint: one is much more profitable)

Current Attitudes and Future Outlook

A study done over 3 years with over 10,000 participants gave us great insight into the Millennials attitudes of the current landscape of banking, as well as their expectations of the future of banking. Key stats regarding current attitudes include that 53% of the participants believe that their banks don’t offer anything different than other banks as well that all four of the leading banks are among the top 10 least loved brands by Millennials. The banks are feeling the effects of these attitudes, from 2014 to 2015, they lost 16% of millennial clients.

So where are these Millennials going to for their financial needs? Well the data suggests they are trying new financial services. Born in the age of the internet, Millennials are better suited to the new alternatives to banks. Services such as Mint and Venmo seem foreign to Baby Boomers but are easily understood and accepted by Millennials. 

“Millennials are willing to shop elsewhere, because we are simply not going to accept that these [banks] are the only products on the market. We are willing to try new startups and their innovations, since they speak our consumer language while the traditional banks do not.” – Tech Crunch 2015. 

The Move to Kickfurther

There is a strong belief from the Millennial population that innovation of finance will come from outside of the banking industry. Almost three-quarters would be more excited about a new offering in financial services from a new competitor in the industry than their own nationwide bank. Once again, their beliefs translated into actions. If you recall, from our user survey, we learned about the demographics of our backers. The large majority of our user base are in their 20’s. The landscape of personal finance is changing and Millennials are leading the way. Utilizing new innovations such as Kickfurther, the transition from traditional banks has begun.

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Topics: Educational, Community

Posted by Daniel Chen on Wednesday 27 Jan 16
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