More than half of millennials are happy to switch to, or have already switched, to a digital-only bank; according to the latest data from independent financial advisory deVere Group.
The report attributes the preference to the tech-savvy generation.
“Millennials have grown up on technology. They are ‘digital natives. Mobile-first millennials expect easy, immediate access and control of their finances in the palm of their hand. They demand to be able to transfer money and pay bills in one tap or swipe. They want to be able to review their spending habits, be offered guidance and have real-time access,” Said Nigel Green, deVere Group CEO.
Nigel further warns traditional banks to catch up or miss out on this demographic, which is touted to be the biggest beneficiaries of wealth transfer.
“This is more bad news for traditional banks, which seem to have been in a perpetual game of ‘catch-up’ in recent years amid evolving customer expectations, regulatory requirements and tech advances,” he further states.
Millennials are the fastest-growing cohort of clients and they are also becoming the beneficiaries of the Greatest Transfer of Wealth in history, according to the report., which estimates that $68 trillion in wealth is to be passed down from the baby boomers – the wealthiest generation ever – to their children and other heirs (millennials) over the next few decades.
The poll sampled more than 550 clients born between 1980 and 1996. 59% of those surveyed said they are already exclusively using digital banking services, or are planning to make the switch to do so within the next year.
The respondents are clients who currently reside in North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia, and Latin America.