live webinar: winning affluent millennials

Winning Affluent MillennialsHow this power persona is reshaping the industry

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Before we get started…

Recorded? Of course!

Emily Friedman

Senior Global Research ConsultantLinkedIn Insights

Research Study Methodology

GLOBAL SURVEY20 minute online survey, fielded by LinkedIn and Ipsos in April 2015.

Survey measured usage, engagement, attitudes and opinions on financial services.

GLOBAL SAMPLE9200 respondents in 10 countries: US, CA, UK, FR, AU, NL, IN, SG, HK and BR.

Quota sampling/ weighting applied to represent internet users in each market.

CRITER IA

Respondents were Millennial (18-34) and Gen X (35-49) Internet users.

In the US, Affluent is defined as $100K+ net investible assets, excluding real estate.

US RESULTS

This report covers results from 1507 total respondents in the US, including:

1004 total Millennials (incl. 121 Affluent) and 503 total Gen X (incl. 150 affluent).

5

Understand the differences between Millennials and Gen X with regard to brand

affinity, purchase process and

information-gathering.

Comprehend the role that social media plays and

the influence that content and context has on the

decision journey for retail financial products.

Examine the subset of Affluent Millennials to

understand their unique mindset, behaviors and expectations.

Research Objectives

Why are Affluent Millennials relevant?

AFFLUENT MILLENNIALS IN THE US

15.5 MILLION Spend $2 TRILLION annually

$59 TRILLION intergeneration

al wealth transfer

- *A Golden Age Of Philanthropy Still Beckons: National Wealth Transfer and Potential for Philanthropy Technical Report; Center of Wealth and Philanthropy ; Boston College; May 2014- *Affluent Population Expands in Size, Spending Power & Marketplace Importance

While these views are still a minority across all groups, Affluent Millennials are especially likely to envision a cashless, sharing-based economy where banks are no longer their primary institutions.

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Affluent Millennials have a uniquely progressive view of future financial conditions

TOP 3 POINTS OF VARIATION IN FUTURE PREDICTIONS:

Cashless society-currency no longer used for transactions

19%

32%

21% 23%

Banks will no longer be primary financial institutions

19%

27%

18% 18%

A sharing-based economy

10%

24%

8% 9%

Millennials GenXersAffluent Millennials

Affluent GenXers

While more than half of both affluent groups anticipate another financial crisis, Affluent Millennials are significantly more likely to be confident in future economic growth and believe the American Dream* is definitely possible.

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Despite high expectations of a future financial crisis, Affluent Millennials are unparalleled in confidence

*The American Dream is typically defined as the ideal that every individual should have an equal opportunity to achieve success and prosperity through hard work, determination and initiative.

36%

59%

44%51%

I anticipate another financial crisis to occur

I am confident in my country's future economic

growth

I believe the American Dream* is “definitely

possible”

24%

47%

18%

29% 25%

44%

23%28%


Affluent GenXers

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Affluent Millennials

Affluent GenXers

START A CHARITABLE FOUNDATION

START A BUSINESS

BUY A SECOND HOME

Affluent Millennials set ambitious goals for their lives

3X

3X19%

30% 27%

6%11%

18%

Two-thirds of Affluent Millennials have at least one loan* compared to half of Affluent Gen X

10

Affluent Millennials are more likely to carry debt

*Excluding mortgage

HAVE AT LEAST ONE…

Credit card with a balance

Personal loan Student loan Business loan

50%

18%

42%

8%

67%

43% 43%35%

52%

16%

29%

4%

44%

18%23%

5%


Affluent GenXers

7X

2X

Over 1/3 of Affluent Millennials save most of their paycheck 11

Compared to Affluent Gen Xers, Affluent Millennials are twice as likely to save the majority of their paycheck each month% OF PAYCHECK SAVED PER MONTH

Affluent Millennials

Affluent GenXers

50%+25%+

66%

35%31% 12%

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Affluent Millennials seek greater involvement and control in financial decisions

51% 47%41%

38%34%

50%

34%40%

AFF

LUEN

T M

ILLE

NN

IALS

AFF

LUEN

T G

ENX

AFF

LUEN

T M

ILLE

NN

IALS

AFF

LUEN

T G

ENX

MIL

LEN

NIA

LS

GEN

X

MIL

LEN

NIA

LS

GEN

X

51%

S O L O I S TPerform their own research, make

decisions and execute trades

V A L I D A T O RConduct their own research and

investment decision

0.27

0.37

0.48

0.5

0.25

0.13

Despite their tendency to do their own research and seek information on financial decisions, Affluent Millennials are particularly likely to see value in having a financial advisors for their current assets.

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Affluent Millennials consider financial advisors a must-have

AFFLUENT MILLENNIALS

AFFLUENT GENXERS

Must-have Nice to have

Unimportant


Unimportant

A FINANCIAL ADVISOR IS A…

More than half of Affluent Millennials with multiple checking accounts hold all of these at the same financial institution.

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Once they are customers, Affluent Millennials are highly loyal to their financial institutions

AMONG THOSE WITH MULTIPLE ACCOUNTS OF EACH TYPE, % WHO HOLD ALL WITH THE SAME INSTITUTION:

Affluent Millennials are significantly more likely to say they are very loyal and plan to do more business with financial institutions they work with.

C H E C K I N G

AFFLUENT MILLENNIALS: 54%AFFLUENT GENXERS: 33%

B R O K E R A G E


S AV I N G S


R E T I R E M E N T


27%

47% 5

9%

48% 1

4%

6%

Somewhat loyal

Very loyal Not loyal

AFFLUENT MILLENNIALS

AFFLUENT GENXERS

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Affluent Millennials are open to financial offerings from traditionally non-financial brands.

57%

69%

47% 47%

“Millennials are different. They have grown up empowered and expect to have a more self-directed life. So they are looking for solutions, not products.”

- Mohamed El-Erian, Chief Economic Adviser, Allianz

MillennialsGenXers

Affluent MillennialsAffluent GenXers

% WHO WOULD TRY FINANCIAL OFFERINGS FROM NON-FINANCIAL BRANDS

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1 in 3 Affluent Millennials uses Apple Pay or Google Wallet; more than 3X vs. Affluent Gen X

Affluent Millennials have high adoption of NFC mobile payment platforms

BRAND BIZ: Which of these companies do you currently use?Base: All Respondents - Millennials (n=1,505), Gen X (n=805), Affluent Millennials (n=165), Affluent Gen X (n=254)

indicates significant difference at 95% level of confidence


Affluent GenXers

12%

34%

8% 7%

16%

31%

10% 11% 9%

25%

3%6%

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When choosing financial institutions, social presence and relationship history are uniquely important to Affluent Millennials

TOP 5 FACTORS OF UNIQUE IMPORTANCE TO AFFLUENT MILLENNIALS

2X AS LIKELY TO BE IMPORTANT TO AFF. MILLENNIALS, VS. AFF. GENX:

SOCIALCompany has a

page on various social platforms

RELATIONSHIP

First financial institution you had

an account with

INFLUENCEMembers of your

family use the financial institution

SOCIAL PRESENCECompany has positive online

buzz

PURPOSECompany has a

community mission you care about

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Affluent Millennials consider social networks a must-have

24%

24%

39%

26%

43%

45%

51%

50%

33%

31%

10%

25%MILLENNIALS

GENXERS

AFFLUENTMILLENNIALS

AFFLUENTGENXERS


Unimportant


Unimportant

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Social networks are central to Affluent Millennials’ financial decisionsCOMPARED TO AFFLUENT GEN X, AFFLUENT MILLENNIALS ARE MORE LIKELY TO:

3x

3x 2x

2x

Think social networks will be the

hub of their financial

info in the future

Visit a financial company’s page

on a social network

Use social networks

to inform finance /Investment decisions

Seek content from financial

companies on

social networks

% of affluent users that use at least 1 social network to obtain this type of info

20

Peer opinions, thought leadership and product reviews are top content for Affluent Millennials on social networks

91%

55%

AFFLUENTMILLENNIALS

AFFLUENTGENXERS

92%

43%AFFLUENT

MILLENNIALSAFFLUENTGENXERS

84%

38%AFFLUENT

MILLENNIALSAFFLUENTGENXERS

P E E R O P I N I O N S

T H O U G H T L E A D E R S H I P

P R O D U C T R E V I E W S

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Affluent Millennials are especially active on LinkedIn

COMPARED TO THE GENERAL POPULATION ON LINKEDIN,AFFLUENT MILLENNIALS ON LINKEDIN HAVE:

CONNECTIONS

COMPANY FOLLOWS

GROUP ACTIVITY

SHARES FINANCE TOPIC

SHARES

2X AS MANY 13X AS MANY

LinkedIn global behavioral data, May 2015

Q&A

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