Millennials rarely visit their bank, use credit cards sparingly, and prefer to sort out their finances online, according to a new survey.
More than half would like to have all their bills, accounts, investments and other financial information on one mobile app, with 60% of people under 24 saying this would be their preferred way to bank.
The survey, by Crealogix, which creates digital banking apps, uncovered stark differences between the generations when it came to money and banking.
It found that 91% of millennials – which this survey pegged as anyone between 18 and 34 – prefer banking apps and online banking with less than 2% using telephone banking and 6% visiting branches. Almost half of under 35s have never used a credit card (44%) compared to just 24% of over 55s.
The responses to its questionnaire found that 11% of millennials never use a debit card versus almost half using a mobile phone wallet, and 43% of millennials use wearables frequently as a way to pay, versus 11% of over 55s.
Younger people also showed an interest in cryptocurrencies, with 25% of under 35s having used Bitcoin versus just 4.5% of over 45s.
In a separate survey, over half of under 45s said they would be interested in banking products from Amazon, Apple or Google.
Equifax, the credit reference agency, found in its study that loans, credit cards or current accounts from these technology companies might tempt younger people away from their current provider if they offered better value than their existing bank.
Jake Ranson, chief marketing officer at Equifax Ltd, said: “The recent announcement that Apple is joining forces with Goldman Sachs to launch a consumer credit card highlights how tech companies plan to shake up the banking industry, creating products and services to compete against the big high street banking names as well as newer digital entrants.”
There have been reports in the US that Apple and Goldman Sachs, the investment bank, are planning to launch a new credit card. The venture is could help boost the Apple Pay brand and enable Goldman Sachs to increase its retail banking product line. It is expected to be on the market by early 2019. Goldman Sachs may also offer Apple customers access to personal loans when they are buying products in the Apple Store, according to reports.
“The tech giants have a loyal brand following in their own right, if they can combine this with a competitive product offering we’ll see an interesting shift in dynamics as the fight to attract customers heats up,” Jake Ranson said.
Now read our guide to online and mobile app banking
Did you find this useful?
Last updated: 31 May, 2019
© 2020 Bankrate and its licensors. All rights reserved. Bankrate is a trading name of Uswitch Limited, registered in England and Wales (company number 03612689). Uswitch Limited is authorised and regulated by the Financial Conduct Authority under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website: www.fca.org.uk/register. Our registered address is The Cooperage, 5 Copper Row, London, SE1 2LH.
Bankrate services are provided at no cost to you, but we may receive a commission from the companies to which we refer you.