ATLANTA-New research finds that members of Gen Y are among the most likely to use alternative financial service providers, including convenience stores, check-cashing centers, and short-term lenders.
SYNERGISTICS said it found 58% of Gen Y members are likely to use any alternative financial provider. Gen X led the way at 59%, while Baby Boomers came in at 43%.
The Millennial generation was also most likely to use convenience stores (34%) for financial services, as well as retail financial centers (21%) and car title lenders (9%). Generation X was most likely to use branches in supermarkets or other retail environments (29%) (27% of Gen Y said the same).
"Although it is unlikely that these providers will significantly displace traditional financial institutions, it is clear that significant numbers of Gen Y and Gen X do not find it necessary to go to a regular bank branch for some activities," observed SYNERGISTICS CEO William H. McCracken, urging banks and CUs to emphasize pricing and relationships.
The findings are from the paper "Generational Marketing Strategies-Gen Y, Gen X and Baby Boomers."
