Understanding Gen Y
Gen Y consumers will earn 46% of the income in the United States by 2025, but they’re often misunderstood or ignored by banks and credit unions. And, if banks and credit unions want to survive, they need to change their approach to reaching this valuable demographic.
In a report published by Javelin Strategy & Research along with Comrade Agency, we learn that although Gen Y is thought of as one group, there are actually two distinct subgroups making up Gen Y:
Gen Y.1 – Made up of 31 million individuals 18–24 years old. They are financially inexperienced college kids, and many still have someone else managing their money. This group is financially uncommitted to any one service provider and are great targets for prepaid cards and basic checking accounts.
Gen Y.2 – Made up of 42 million individuals 25-34 years old. They are educated, employed, and manage their own money. This subgroup is highly engaged in financial services and are tech-savvy with an appetite for financial products. Generally experienced when it comes to banking, but still in need of help with financial planning, retirement planning, home loans and auto loans.continue reading »