According to Catalyst, by 2020 millennials will comprise half the global workforce. Also by the same year, half of India’s population will be younger than 25 years. So who are these millennials who are being so widely talked about? Millennials are people who have touched adulthood around the year 2000, i.e. when we hit the millennium year. Millennials are now the largest generation in our workforce and perhaps the most diverse, well-educated and well-informed generation. They also have huge earnings, thus higher spending capacity and are considered to be very affluent people.
When we say that they are the most diverse, well-educated and well-informed generation, we mistake them for a generation that probably does not need our help in most of the matters. After all, they have a lot of resources to research from and rely on, especially the internet. This may be true to some extent but the millennials still need a lot of help and guidance, especially when it comes to finance.
All About Millennials
In the course of time, the millennials will be hitting life’s major milestones like they will be getting married, buying their own houses, planning families and raising kids. Most of them, no matter how educated and affluent they are, are still looking for financial guidance for these life-changing events. Despite their heavy reliance on the internet and books, millennials feel lost as most of them don’t have someone they can turn to and trust for financial advice, neither professionally nor personally. To top that, only a few talk to their parents about monetary issues. A recent study conducted by LinkedIn: “The Affluent Millennia Opportunity” revealed that 86% of affluent millennia use social media for obtaining financial information. However, another study said that 54% of the affluent millennia conduct their own research before making an investment but consult with an advisor to validate before they make a decision.
This is the reason why millennials are interested in brands providing financial services. That is where they can put their trust in the right person and get personalised and transparent help, specially designed to solve their problems and help clear their doubts. The millennials are willing to pay brands where they can get personalised and focused attention. This can help solve their financial queries as they embark on the life-changing events, become independent, take control of their lives and become financial decision makers, captaining their respective ships.
What Is Financial Independence To The Millennial Generation?
The previous generation thought to own a house and to invest in a perfect retirement plan was the apex achievement in terms of financial independence. Unlike them, the millennials think paying off their debts and saving for the future are the most essential goals when it comes to financial independence. Data states that millennials who are touted to be one of the most educated and diverse generations till date have the highest student loans. They think that the biggest financial accomplishment in their lives would be paying it off and being debt free, after which they can start planning their future and saving for it.
Credit Cards And The Millennials
Millennials have seen their predecessors indulging into a luxurious lifestyle using credit cards. By the time they realised the repercussions of the excessive usage of credit cards, they were neck-deep in debts. It was almost impossible for them to pay off all the debt, which was spent in improving their standard of living, rather than investing in and building new assets. Perhaps this is why the millennials have avoided using credit cards. They believe that credit cards could worsen their financial position, instead of promoting it. Millennials think that credit cards would only add to their existing debts and problems. Instead, they should think of credit cards as financial tools that would assist them in achieving their long-term financial goals. The credit card companies should convert this challenge into an opportunity by marketing themselves as a financial tool that would aid the millennials.
Opportunity To The Financial Service Providers
Credit card companies should identify gaps in their marketing efforts and start promoting their product by making the millennials aware of its utility. The credit card companies should educate the millennials about their product. They should emphasise that using credit cards strategically will help them increase their financial flexibility by developing short-term credits and can also provide them valuable rewards in the forms of cash back and credit points. After all, millennials are more interested in seeking financial guidance and information, rather than financial help. Millennials are interested in breaking the shackles and crossing over the hurdles, irrespective of what the previous generation thought. This is where brands have the opportunity to redefine themselves and win their trust by providing them unified, transparent and personalised solutions which are specifically focused on their needs. The companies providing financial services, should also engage in content marketing and educate the millennials about the financial and monetary issues using fun, and easy to understand the content. It will interest the millennials and give the companies their loyalty and trust in return.
Millennials’ Saving Pattern
Despite high debts, especially the education loans, millennials save a small amount of their money every month, to secure their future, which is nothing like what their predecessors did. Another interesting thing to notice about millennials is that their saving is more driven by values than by specific life goals like world travel or retirement. Most of them are willing to save because they want to be more responsible.
But despite their attempts to save every month, they don’t know how to multiply their savings by investing them at the right place. This is why their savings just rot as idle money. Even though they are more interested in investing and increasing their earnings as compared to the previous generations, lack of knowledge and information is preventing them from investing the money, which not only affects their growth and development but also impacts the economy. This is where companies providing financial services can help. They can start educating the millennial generation about finance and investments in a fun, easy and engaging way which will guide and encourage them to invest and achieve the desired returns on their hard-earned money.
Content Marketing And Financial Services
Providing financial education along with financial services using content marketing to engage the millennials can build a long-lasting bond of trust and transparency between the service provider and the millennials. This will make the companies their financial guru where they will seek financial advice on their first investments. As they observe their first investment paying off well, they would like to return to the companies for more guidance and information which will help the companies in growing their business. Helping the millennials in developing a financial plan will make the company a brand the millennials would like to return to as they hit the other milestones in their life, like marriage, business, family and even retirement.
Using content marketing as a tool to educate the millennials about the financial services will attract them to the financial companies. As the millennials continue to research and rely on the internet for their financial decisions, creating relevant content will foster a stronger bond between the company and the millennials. This will encourage the millennials to come back to the financial service providers for more advice and thus products, and the service providers would engage long-term and loyal customers.