Mark Schwanhausser, Research Analyst of Javelin Strategy and Research, led the first data driven session - "Analysis of the Demographic: Personal Finance Attitudes & Behaviors. "
Key insights from Mark's presentation:
Gen Y has growing economic clout.
- Will comprise 29% of population by 2017, outnumbering Boomers (77 million) and Gen X (88 million).
Gen Y: Two definitions of mobility.
- They move because they’re still establishing their lives.
- They will be the first generation of Americans to embrace the idea that their mobile devices will become a irreplaceable banking tool – a mobile wallet.
Gen Y consumers are not content with one channel or one payment method.
- They have stronger preferences for online channels and debit-card transactions, but they expect to have options and use them where they see fit.
Gen Y consumers want tools to help them manage and monitor their money.
- Gen Y use online- and mobile-banking alerts, personal finance management tools and education to help them stay on top of their finances.
- They are more likely to stick with the institutions they know and trust since they were children. Many will follow their parents’ guidance, with many starting out with credit union accounts.
My take:
Hard to argue with the numbers - great baseline for the rest of the conference. It's important to get the facts because there are so many generalizations and assumptions regarding 18-to-30 year olds. What stood out to me is the fact that young adults prefer everything online - an assumption that is heard so often (Facebook! Mobile Banking! Twitter! And so on...). Instead, they prefer these options, but still expect to be able to visit a branch and do "normal" banking.
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3 comments:
Christopher: Was there much discussion about what the mobile wallet will look like?
I didn't dive into the specifics, though I did say that I'm looking forward to a day when the sleek cellphone in my hand will replace the fat wallet in my back pocket. The mobile wallet is going to evolve in ways that will be exciting and often unpredictable. What we know is that it is getting hung up as carriers, networks, merchants and tech players jockey for position to ensure they get a cut -- or don't get cut out. Ideally, the mobile wallet will have everything consumers need and more. That will start with versions of everything in the conventional wallet: credit cards, debit cards, stored cards, etc. But where it will take a leap into the future is by enabling us to have new relationships with merchants, banks, credit unions, etc. It could eliminate the need to carry frequent-user cards from the coffee house and your favorite retailers. It will enable me to essentially carry around coupons and redeem them at the checkout. It will enable me to receive promotional offers WHILE I'm still shopping. It will enable me to comparison shop online far and wide WHILE I'm still in a store. In short, it's going to redefine what a wallet means.
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