Research: High net worth millennials will dump banks and take to fintechs

September 16, 2019 | FinTech

Pricing strategy specialists Simon-Kucher & Partners find 60% of millennials are not happy with current wealth management services

High net worth millennials might be a problem for traditional banks, according to the latest research by Simon-Kucher & Partners.

The survey was conducted in February 2019 via an online questionnaire. It comprised of 645 individuals from six countries – Australia, China, Hong Kong, Singapore, the UK, and the US. The respondents were all born between 1981 and 1996.

Key findings on high net worth millennials

“Private banks need to get a hold of this next generation before it’s too late,” observes Desi Soetanto, consultant. “The future survival of private banks will depend on whether they’re able to master the art of winning Millennials and keep them as customers.”

  • 60% of millennials are unhappy with traditional wealth managers
  • 80% had switched, or were considering switching over, to fintech alternatives
  • These millennials are planning to allocate 56% of their assets to fintechs
  • 56% of UK millennials were not loyal and had three private banking relationships on average
  • Millennials will constitute half of the global workforce by 2020 and will be the most significant wealth creators
  • In Asia, by 2046, the baby-boomer generation will pass on $ 30 trillion to the millennial generation

What banks need to do

  • Upgrade the customer experience and add the wow factor
  • Wow factors include 24 x 7 access, transparency in fees, picking a preferred relationship manager, exclusive offerings
  • Understand that millennials highly value quality and brand
  • Learn from companies like Apple or Netflix which millennials love
  • Accelerate digitization and provide customers with tailor-made offerings

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