Winning Affluent Millennials

17 Pages·2015·0.55 MB·English

2015 AUSTRALIAN AFFLUENT MILLENNIAL RESEARCH STUDY
Winning
Affluent
Millennials
How this New Power Persona is
Reshaping the Finance Industry
Background
About the Study About the Study Objectives
Sample Population
In April of 2015, LinkedIn The study set out to gain
and Ipsos conducted a global greater understanding of
The study targeted Millennials,
study of 9,200 Millennial and Millennials, particularly:
which are defined as individuals
GenX Internet users across 10
born from 1981 to 1997, and
• The differences between Millennials
countries. This report focuses
GenXers, which are those born and GenXers with regard to brand
on data gathered from a subset
1966 through 1980. The study affinity, purchase process and
of 802 individuals from across further broke down these information-gathering.
Australia. The 20-minute online
generations into subgroups of
• The role that social media plays
survey measured respondent
affluent members, which refers to
and the influence that content
usage of and engagement with
those living in households with and context have on the decision
financial services offerings, as investable assets in excess of journey for retail financial products.
well as their attitudes
AUD$100,000.
• The unique mindset, behaviors
and opinions about the
and expectations of the “Affluent
finance industry.
Millennial” subset.
KEY FINDINGS
This white paper breaks down the data collected through the study.
In summary, the study revealed the following about Affluent Millennials:
ETERNAL OPTIMISTS ENGAGED OPEN-MINDED SOCIAL-CENTRIC HUNGRY FOR
DECISION-MAKERSS EDUCATIONAL INFO
Affluent Millennials Despite being loyal Social networks are
have a progressive Affluent Millennials customers, they are a must-have among They actively seek
and optimistic outlook conduct their own open to financial any financial out financial content,
for the future. Their research, however offerings from institutions that want particularly through
confidence and trust like to validate their traditionally non- to win over Affluent their social networks
are unparalleled. findings with an financial brands. Millennials. They are ,including thought
advisor beforing central to the group’s leadership, expert
making financial financial decision- opinions, educational
decisions. making process. articles and literature
on products and
services.
2 | Introduction
PART
Introduction
01
Who are Affluent Millennials?
If you were born between There are 5.7 million Millennials in Australia alone. They are vital to the
the years 1981 and 1997, Australian economy and represent the future wealth generation engine
of the country Research study findings revealed that the Millennial
you’re a member of the
generation has a very bright financial future and is a persona not to be
Millennial generation.
ignored by today’s financial services provider.
What’s more, if you are a
Millennial and hold at least
AUD$100,000 in investable
assets, excluding real estate,
then you are, by definition,
an Affluent Millennial.
! WHY ARE THEY RELEVANT?
In addition to the wealth To help answer this question, command major changes
members of this generation LinkedIn and Ipsos’ study within the finance industry.
are poised to build on their worked to identify the Affluent One thing is for sure: The
own, they will also be on the Millennials’ preferences and firms that work now to
receiving end of a massive behaviors regarding savings understand Affluent Millennials
generational transfer in and investments, as well as and proactively target this
personal wealth over the next their attitudes and beliefs new persona with products,
several years. about financial services services, content and
providers. Perhaps most communication that appeal
This shift will drastically
importantly, it elucidates key to their unique preferences,
change the primary buyer
opportunities for financial challenges and dreams will
persona of financial services
institutions to reach, nurture succeed. They won’t falter
firms around the world, thus
and deepen relationships with through the disruption.
forcing massive changes to
Affluent Millennials as they Instead, they will win the
their business models and
prepare for their future. long-term loyalty of this
marketing strategies. So, how
powerful persona.
can financial services providers As their incomes and
best prepare for these investable assets grow, this
drastic changes? powerful generation will
2015 Australian Affluent Millennial Research Study | 3
PART
The Future
AFFLUENT POPULATION EXPANDS IN SIZE,
02
SPENDING POWER AND MARKETPLACE IMPORTANCE
The study found that Affluent Confidence in the But the Dream is moving
Millennials have a uniquely Country out of reach
progressive view of future Affluent Millennials have the However, while there is positive
financial conditions. For highest level of confidence in the sentiment for Australia’s economic
future economic growth of their outlook, only one in five believe
example, Affluent Millennials
country They are also less likely that the Australian Dream is
are particularly likely to
to anticipate another financial possible, perhaps pointing to the
envision a technology
crisis, as opposed to their Affluent increasing cost of real estate in
enabled future including
GenXer counterparts. major urban centres.
automatic debt pay down
and an environment where
AFFLUENT MILLENNIALS HAVE ESPECIALLY
HIGH CONFIDENCE IN ECONOMIC GROWTH
banks no longer serve
Affluent Millennials are less likely to anticipate another financial crisis, perhaps in turn driving their higher
as their primary financial confidence in Australia’s future economic growth and resulting opportunities for personal financial success.
institutions but rather social
MILLENNIALS AFFLUENT MILLENNIALS GENXERS AFFLUENT GENXERS
networks fill this space.
47%
39%
36% 35%
28%
23%
*The Australian Dream or Great Australian Dream 20% 18% 18%
is a belief that in Australia, home-ownership
can lead to a better life and is an expression of 13% 14% 12%
success and security
I anticipate another financial I am confident in I believe the Australian
crisis to occur my country's future Dream* is “definitely
economic growth possible”
Sacrifices Today Make a Brighter Tomorrow
Affluent Millennials are AFFLUENT MILLENNIALS BELIEVE THEIR CURRENT DECISIONS
WILL DRIVE FUTURE SUCCESS
disciplined and future-oriented —
% Agree: My future success depends on the decisions I make now
54% agree that the sacrifices they
make now will pay off in
the future, significantly more
than the total Millennial and
GenXer cohort.
MILLENNIALS GENXERS
Total: 46% Total: 35%
Affl uent: 54% Affl uent: 48%
2015 Australian Affluent Millennial Research Study | 4
Setting Ambitious Goals of buying a first home and / or Furthermore, Affluent Millenials
starting a business. And it appears see travel as an important
With the sacrifices they’re making
as though many have already whether for study abroad or for
today, Affluent Millennials are
acted on this goal with one in pleasure. They are eight times
gearing up to achieve big goalsin
five Affluent Millennials in more likely than Affluent Gen X
the future. While goals among all
possession of a business loan. to travel abroad for studying.
affluent groups surveyed did tend
In fact, they are 19 times more
to vary by age group, the study
likely to have a business loan than
shows that Affluent Millennials are
Affluent GenXers.
more likely than Affluent GenXers
AFFLUENT MILLENNIALS SET AMBITIOUS GOALS FOR THEIR LIVES
Affluent GenXers Affluent Millennials
BUY A FIRST HOME START A BUSINESS
Affluent Millennials NET 28% Affluent Millennials NET 26%
Short-term goal 16% Short-term goal 11%
Long-term goal 12% Long-term goal 12%
Affluent GenXers NET 13%
Affluent GenXers NET 11%
Short 2%
Short-term goal 5%
Long-term goal 11%
Long-term goal 11%
AFFLUENT MILLENNIALS FAR OUTPACE AFFLUENT GENXERS
IN INTERNATIONAL EDUCATION
Millennials Affluent Millennials GenXers Affluent GenXers
7%
18%
16% Travel abroad
38%
for further
4%
EDUCATION 5%
10%
6%
PAST FUTURE
[ HAVE ALREADY DONE THIS ] [ PLAN TO DO THIS IN NEXT FEW YEARS ]
11% 13%
Travel abroad
18% for a 31%
6% GAP YEAR 5%
14% 5%
KEY An entrepreneurial spirit and unparalleled ambition is shared among
TAKEAWAY Affluent Millennials and will drive them toward their unique future goals.
2015 Australian Affluent Millennial Research Study | 5
PART
Today
HOW AFFLUENT MILLENNIALS
03
ARE PREPARING FOR TOMORROW
Diversifying Income Sources
Income sources are changing for
Affluent Millennials. This group
are especially likely to be building
SOURCES OF AFFLUENCE ARE SHIFTING
their wealth through gaining
ACROSS GENERATIONS
assets through inheritance or
(cid:38)ompared to A(cid:73)(cid:372)uent (cid:42)en (cid:59)(cid:15) A(cid:73)(cid:372)uent (cid:48)illennials are
family business.
especially li(cid:78)ely to have (cid:74)ained assets (cid:73)rom(cid:29)
INHERITANCE / WAGES
SUPERANNUATION
TRUST FUND (FAMILY BUSINESS)
3 . 4 x 2 . 7 x 2 . 5 x
More Debt … but Also More Saving
One in two Affluent Millennials The debt these Affluent In spite of their collective debt,
have at least one loan that is not a Millennials are taking on comes Affluent Millennials are saving.
mortgage. This is more than twice in the form of, personal loans While Affluent GenXers save a
as likely than Affluent GenXers, of (32%), student loans (27%) and median of 18% of each paycheck,
whom approximately one in five business loans (19%). Notably, Affluent Millennials save a median
hold at least one loan other than Affluent Millennials are 19 times of 30%.
a mortgage. more likely to have a business
loan and four times as likely to
have a personal loan than Affluent
GenXers.
2015 Australian Affluent Millennial Research Study | 6
AFFLUENT MILLENIALS ARE MORE LIKELY TO
SAVE MOST OF THEIR MONTHLY PAYCHECK
% of paycheck saved per month

Affluent Millennials
Affluent GenXers

50 +
%

30%
18% Nearly 1 in 3 Affluent Millennials
save the majority of their pay
Taking Ownership of Financial Decisions
It appears that Affluent Millennials
might approach their own
finances with a greater sense
AFFLUENT MILLENNIALS SEEK GREATER INVOLVEMENT
of ownership than previous
AND CONTROL IN FINANCIAL DECISIONS
generations. When it comes to
managing their finances, it’s clear 51% 50%
48%
that Affluent Millennials want
43%
42%
more control.
40% 40%
38%
Two in five are considered
Soloists, meaning they prefer to
S S S S
L L L L
do their own research, make their A A A A
own decisions and execute trades NI NT NI NT NI NT NI NT
N EN E N EN E
on their own. However, one in two E UE U E UE U
L LL X LX L LL X LX
of overall and Affluent Millennials IL FFIL EN FFEN IL FFIL EN FFEN
M AM G AG M AM G AG
act as validators, meaning they
undertake their own research, but VALIDATOR SOLOIST
consult an advisor when making Conduct their own research Perform their own research, make
and investment decisions decisions and execute trades
the final decision. This represents
a shift in the power base for
financial companies when
consumers are doing most of
their research upfront.
2015 Australian Affluent Millennial Research Study | 7
Guided Independence
Although they want to take the
helm when it comes to their AFFLUENT MILLENNIALS ARE MORE THAN THREE TIMES
AS LIKELY TO CONSIDER FINANCIAL ADVISORS A CURRENT “MUST-HAVE,”
finances, Affluent Millennials don’t
COMPARED TO AFFLUENT GENX
want to navigate these waters
Despite their tendency to do their o(cid:90)n research and see(cid:78) in(cid:73)ormation on financial decisions(cid:15)
alone. Yes, they want to conduct
A(cid:73)(cid:372)uent (cid:48)illennials are particularly li(cid:78)ely to see value in havin(cid:74) a financial advisor (cid:73)or their current assets(cid:17)
their own research, make their
own decisions and execute their A FINANCIAL ADVISOR IS A
own trades. But they also value
Must-have Nice to have Unimportant
the insights and guidance of
AFFLUENT
26% 51% 24%
experienced financial advisors. MILLENNIALS
Today, 76% of Affluent Millennials
Must-have Nice to have Unimportant
consider financial advisors
important, with 26% calling them AFFLUENT 8% 33% 60%
GENXERS
a “must-have.” They want guided
independence, expert advice to
help them make smart decisions.
Loyalty and Trust … but Also Thinking Outside the Box
Nearly nine in ten Affluent AFFLUENT MILLENNIALS ARE LOYAL TO FINANCIAL
COMPANIES THEY WORK WITH
Milliennials describe themselves as
The majority would be willing to take their business elsewhere if presented with better
loyal to their financial institutions,
solutions(cid:15) but A(cid:73)(cid:372)uent (cid:48)illennials are more li(cid:78)ely to stay loyal to financial institutions
which is not surprising given once they(cid:333)re customers(cid:17)
they are more likely to trust their Very loyal: Somewhat loyal: Not loyal:
plan to do business with them would take business elsewhere actively seeking to switch
financial institutions (90% Affluent in the next few years for better products or services business to other companies
Millennials vs. 76% Gen X trust
AFFLUENT 30% 60% 11%
their current financial institutions). MILLENNIALS
However, despite this apparent
AFFLUENT 20% 61% 20%
loyalty, a striking fact revealed by GENXERS
the study is that Affluent Millennials
are very open to trying financial
products and services from brands
52%
outside the finance industry. AFFLUENT MILLENNIALS ARE
46%
OPEN TO FINANCIAL OFFERINGS
More than one in two Affluent
FROM NON-FINANCIAL BRANDS
Millennials are likely to consider
31%
Millennials Affluent Millennials 29%
such offerings, compared to just
GenXers Affluent GenXers
one-third of Affluent GenXers.
% WHO WOULD TRY FINANCIAL OFFERINGS
FROM NON-FINANCIAL BRANDS
2015 Australian Affluent Millennial Research Study | 8
What do Affluent
PART
04
Millennials Want?
Aside from their age and assets, a strong indicator that sets Affluent Millennials apart
from Millennials overall, as well as both Affluent and Non-Affluent GenXers, is what they
look for in a traditional financial services provider.
When evaluating a potential financial services provider, all groups are likely to care about things like low
fees and data privacy, but Affluent Millennials are unique in placing importance on the following factors:
SOCIAL SERVICE INFLUENCE SOCIAL PRESENCE PURPOSE
• Does the company • Does the company • Do any of my • Does the company • Does the company
have a strong social provide online live family members have a positive have a social mission
media presence? chat? use this company? buzz online? that I agree with?
• What content • Does the company • Do my family • How does my • Do the company’s
is available from offer a website that members have personal social values seem to align
the company via has all the banking positive or negative network feel about with my own?
social networks? features I need? feelings about this company?
• Do I care about the
the brand?
• Is it possible to • How has the company’s vision?
communicate with • Would my family company influenced
the company through recommend other the industry?
social media? companies over
this one?
Where do they find the answers to these questions? Online, through their social networks, to be exact.
This study found that social networks are of critical importance to Affluent Millennials because they are
central to their financial decision-making process.
Social Networks are a Must-Have
AFFLUENT MILLENNIALS CONSIDER SOCIAL NETWORKS A “MUST-HAVE”
Affluent Millennials trust their Must-have Nice to have Unimportant
social networks and turn to MILLENNIALS 30% 48% 22%
them often for financial content,
AFFLUENT
guidance and advice. In fact, 33% 49% 18%
MILLENNIALS
theyare twice as likely as Affluent
GenXers to seek financial Must-have Nice to have Unimportant
content on social networks. GENXERS 18% 42% 41%
AFFLUENT
20% 39% 41 %
GENXERS
2015 Australian Affluent Millennial Research Study | 9
What are Affluent Millennials Looking for in Their Social Networks?
SOCIAL NETWORKS ARE CENTRAL TO AFFLUENT MILLENNIALS’
FINANCIAL DECISIONS
While previous generations may COMPARED TO AFFLUENT GEN X,
AFFLUENT MILLENNIALS ARE MORE LIKELY TO:
have seen financial matters as
private and would never consider
Use social networks
to inform finance /
discussing them with their peers, Investment decisions
Affluent Millennials use social 2x
networks to inform finance
Visit a financial
and investment decisions and company’s page on
a social network
research financial companies two
3.4x Seek content from
times more than Affluent Gen X. financial companies
on social networks
2x
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RERVREIEVEVIWEIEWSW SAS RA AER RETE OT OTPO PCP OC CONONTNETNETENTN TF TOF OFRO RAR FA FAFLFFULFEULUNEENTN TM TMI LMILLIELLNELENNNNIANILAISAL SLOS ON ONN
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SOSSOCOICACILAI ALN LNE NTEWETWTOWOROKRRSKKSS
REVIEWS ARE TOP CONTENT FOR AFFLUENT MILLENNIALS ON
SOCIAL NETWORKS
717%17 %1%
71% 2.52x.25.x5x 565%65 %6%
505%05 %0%
2.5x 56% 5x5x5x 3.53x.35.x5x
50%
On social networks, the content 272%72 %7% 5x 3.5x
that Affluent Millenials seek are 27% 111%11 %1% 141%41 %4%
AFFALFUAFEFLFUNLETUN ETN T AFFALFUAFEFLFUNLETUNETNT AFFALFUAFEFLFUNLETUN ETN T AFFALFUAFEFLFUNLETUNETNT AFFALFUAFEFLFUNLETUN ETN T AFFALFUAFEFLFUNLETUNETNT
thought leadership, educational MILMLIEMLNLIELNLNIEANNLISNA LIAS LS GEGNEXGNEERXNSE XRESR S MILMLIEMLNLIELNLNIEANNLISNA LIAS LS GEGN1EXGN1EERX%NSE X RESR S MILMLIEMLNLIELNLNIEANNLISNA LIAS LS GEG1NE4XGNE%ERXN SEXRESRS
AFFLUENT AFFLUENT AFFLUENT AFFLUENT AFFLUENT AFFLUENT
content, and products reviews. MILLENNIALS GENXERS MILLENNIALS GENXERS MILLENNIALS GENXERS
Thought Leadership Educational Content Expert Opinions
Content with new Branded material Helpful commentary
insights and innovative providing insights and shared within their
ideas for smarter comparisons about networks about financial
investing, savvier financial products and markets, investment
saving and expedited services. opportunities, financial
generation of wealth. events, etc.
2015 Australian Affluent Millennial Research Study | 10