By 2017, there will be approximately 91 million Gen Yers, compared to 88 million Gen Xers and 77 million Baby Boomers. Gen Y, also known as millennials, is an important demographic, as evidenced by several recent industry studies that highlight these important facts:
» Gen Y prefers choice in banking services. According to a survey by the American Bankers Association, 30% of those under 34 years of age prefer online banking. However, branch banking ranked a close second at 25%. It’s not a mutually exclusive relationship.
» Gen Y is largely being ignored by the fund management industry. A global survey by KPMG found that fund managers and advisors plan to stay focused on serving the Baby Boomer generation. Only 22% of surveyed firms currently focus on Gen Y, with an additional 28% planning to focus on this group in the next two years.
» Gen Y needs education. KPMG reports that Gen Yers need information and education about financial planning and that Gen Yers “want to look at their portfolio every day.”
Clearly, targeting Gen Y is an opportunity for insurance agents as well as wealth managers and investment advisors. Building long-term relationships with Gen Yers should include the provision of a variety of options for communicating important financial information. These options should include print, electronic, and interactive formats.
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