Young Adults Favor Online Banking

    July 19, 2007

Consumers born between 1982 and 2000 are accustomed to using the Internet to access financial services, according to Celent Communications "The Millennials, Financial Services and the Web" report.

These consumers will be the next large prosperous group. The report says that offering them financial services in ways they are familiar with will establish their loyalty, and pay off as the group’s wealth increases.

The group also used debit cards more frequently than other payment methods and for lower dollar amounts than older consumers.

Dan Schatt of Celent said, "GenM is the first generation to grow up online and to grow up without the need for a landline phone."

"Given the ubiquity of mobile handset adoption and Internet usage among college students, banks that want to tap into this demographic will have to invest heavily in the mobile and Web channels, the number one preferred way for this segment to communicate and obtain information about financial providers."

Thirty-six percent of the millennial generation in the U.S. chose the Internet as their preferred method for doing financial business. Thirty-three percent said doing their banking in person would be their second choice, followed by 23 percent who said they would chose to use the phone.