Smartphone experiences are no longer a luxury. They’re the norm. Now, more and more people are turning to their smartphones for everyday tasks, including financial management. Financial technology (or FinTech) is disrupting the financial services industry with improved apps and mobile services, causing a major shift in how we engage with our money. It’s clear that the demographic spearheading this shift is the Affluent Millennial.
With 15.5 million Affluent Millennials in the U.S., this demographic is expected to receive $59 trillion in generational transfers of wealth over the next few years—and that’s not including any earned income1
. But this doesn’t mean they’re going to spend frivolously. In fact, Millennials are twice as likely to save a majority of their paychecks, compared with their Gen X predecessors1
Masters of their Financial Future
Not only are Affluent Millennials more interested in saving, they also desire the right information to make informed financial decisions2
- 87% consider financial advisors important; 37% say they are a “must have”
- 50% perform their own research, make decisions and execute trades
Millennials are known for being independent thinkers, so it’s no surprise that Affluent Millennials conduct lots of research before making decisions. While being more careful with their assets, they’re also more open to non-traditional financial offerings.
Pandora reaches half of all U.S. Millennials6
and 72% of them consider themselves the “CFO” of their wealth, taking the lead on managing their personal finances3
. With that much work on their plate, anything that makes it easier is appreciated: 41% of Pandora listeners say music makes doing their finances easier3
Being the first generation to grow up with the internet, Affluent Millennials are more comfortable and trusting of online financial companies. Nearly 70% of them say they would try financial offerings from new non-traditional, service-focused brands1
Tapping into this audience is of utmost importance for FinTech. Not only are financial apps opened 30% more frequently than other apps4
, but Millennials are showing increasing spending power and propensity to manage their wealth on-the-go. Financial advertisers will benefit from going where they are and thinking about a mobile-first strategy to media planning.
The vast majority (86%) of Pandora listening happens on mobile5. By reaching half of all U.S. Millennials, Pandora helps advertisers engage with the financially-savvy Affluent Millennial6.
To read more about financial services hot topics:
1 Affluent Millennial White Paper 2015. “Affluent Millennial” defined by born 1981-1997 with investable assets >$100+ excluding real estate, LinkedIn + IPSOS
2 Affluent Millennials White Paper 2015, LinkedIn + IPSOS
3 Pandora Soundboard Study, Banking & Credit Card, February 2016
4 LiftOff Mobile Finance 2016, Non-gaming apps
5 Pandora Internal Metrics, August 2016
6 comScore, Key Measures, August 2016