Study finds that millennials are 56% more
likely to grow their relationship with their primary financial
institution over the next twelve months than Gen Xers and baby
boomers
PLANO,
Texas, May 22, 2024 /PRNewswire/ -- Alkami
Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading
cloud-based digital banking
solutions provider for financial institutions
in the U.S., announced today the release of its latest research,
the Generational Trends in Digital Banking
Study. The study comes amidst what
has been called the greatest intergenerational wealth transfer in
history, with millennials (defined as those ages 28-44) anticipated
to be the nation's future wealth holders. With this research,
Alkami aims to arm financial institutions with insight into how
this generation stands apart from baby boomers, Generation X (Gen
Xers), and Generation Z (Gen Zs), empowering them to drive more
meaningful engagement, loyalty, and relationships with their
account holders.
The study explored a variety of key millennial financial trends,
beliefs, and preferences, including the impact of the rising
interest rate environment and views on adding new or different
personal financial providers and products. The research also
captured the biggest opportunities for regional and community
financial institutions, and the role of data and artificial
intelligence in informing and influencing personalized experiences.
Key findings regarding these trends include:
- 73% of millennials say the rising interest rate environment has
significantly impacted their standard of living, significantly more
than Gen Xers and baby boomers.
- 65% of millennials report they feel they are living paycheck to
paycheck.
- Over a quarter of millennials say that buying a home hinders
wealth, as opposed to building it.
While millennials are navigating a difficult generational period
driven by economic conditions, the study also points to clear and
immediate opportunities for regional and community financial
institutions to serve this group:
- 30% of millennials plan to grow the number of financial
providers with whom they have a financial relationship over the
next twelve months; this is 2.5x more than the weighted average of
Gen Xers (14%) and baby boomers (8%).
- Millennials have 14% and 28% more products with their personal
financial institution than Gen Xers and baby boomers,
respectively.
- Millennials are 56% more likely to grow their relationship with
their primary financial institution over the next twelve months
than Gen Xers and baby boomers.
"Millennials are very much up for grabs by regional and
community financial institutions. The study revealed that
millennials are significantly more likely than older generations to
change financial providers if another offers a better digital
banking experience," said Allison
Cerra, chief marketing officer at Alkami. She continued, "To
capture and retain this account holder base, banks and credit
unions must prioritize their digital sales and service platform and
evolve to become data-informed digital bankers, given millennials
are also much more likely to want a more personalized digital
banking experience than any other generation."
Created in partnership with The Center
for Generational Kinetics (CGK),
the national study included a rigorous methodology with 1,500
participants weighted to the 2020 US Census for age, gender,
region, and ethnicity with all participants active in digital
banking.
"This study provides business-critical research insights
to financial institution leaders at an important moment of
generational transition," said Jason
Dorsey, president of The Center
for Generational
Kinetics. He added, "Millennials not only
want, but deeply value relevant product recommendations to help
them manage their finances. We hope that this study inspires
regional and community financial institutions to invest their
resources in alignment to best grow their relationships with
millennials and benefit from the impending wealth
transfer."
To read the full Generational Trends in Digital Banking
Study, visit here. Financial
institutions can take action now to assess their competitive
position and digital maturity level by taking Alkami's
Digital Sales & Service Maturity Model
self-assessment.
About Alkami
Alkami Technology,
Inc. is a leading cloud-based digital banking
solutions provider for financial institutions in the United States that enables clients to grow
confidently, adapt quickly, and build thriving digital communities.
Alkami helps clients transform through retail and commercial
banking, digital account opening, and data and marketing solutions.
To learn more, visit
www.alkami.com.
About The Center for Generational Kinetics
The
Center for Generational Kinetics is a global research firm focused
on delivering custom research that uncovers emerging trends, hidden
behavioral drivers, and actionable insights for leaders. The firm
has led more than 120 custom research studies around the world for
global brands and industry pioneers. To learn more, visit
GenHQ.com.
Media Relations Contacts
Vested
alkami@fullyvested.com
Marla Pieton
marla.pieton@alkami.com
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SOURCE Alkami Technology, Inc.