Winning Affluent Millennials

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Winning Millennials: How This New Power Persona is Reshaping The Finance IndustryAustralia │ June 2015

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Methodology

AUSTRALIA RESULTSThis report covers results from 802 total respondents in Australia, including:

501 total Millennials (incl. 101 Affluent) and 301 total Gen X (incl. 104 Affluents).

GLOBAL SURVEY

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

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

GLOBAL SAMPLE

9,200 respondents in 10 countries: United States, Canada, United Kingdom, France, Netherlands, Australia, India, Singapore, Hong Kong and Brazil.

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

CRITERIA

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

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

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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.

R E S E A R C H O B J E C T I V E S

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Key Findings Summary

AFFLUENT MILLENNIALS ARE…

ETERNAL OPTIMISTS

Progressive view of future finance industry, confident about own financial future – make decisions now for future success.

Demonstrate strong trust and loyalty with their current financial services providers.

ENGAGED DECISION-MAKERS

Prefer to act as “validators” when making financial decisions: do research on their own, validate with advisor.

Value the ability to manage their own finances using technology, particularly on mobile.

OPEN MINDED

Despite being loyal customers, most Affluent Millennials would switch financial companies if presented with better solutions.

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

SOCIAL-CENTRIC

Social networks are a must-have and central to Affluent Millennials’ financial decisions.

Especially likely to visit financial company ‘s page and seek relevant content from financial companies on social.

HUNGRY FOR EDUCATIONAL INFO

Top content includes thought leadership, educational content, expert commentary.

Significantly more likely to acquire educational content relevant to their financial needs through social networks.

A M B I T I O U S , P R O G R E S S I V E & C O N F I D E N T:

How This New Power Persona Is Reshaping The Finance Industry

While these views are still a minority across all groups, Affluent Millennials are especially likely to envision a future with automatic debt pay-down through earnings and banks no longer being their primary financial institutions.

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Affluent Millennials have a uniquely progressive view of future financial conditions

TOP 3 POINTS OF VARIATION IN FUTURE PREDICTIONS:

Automatic debt pay-down through earnings

17%

26%

16% 15%

Banks will no longer be primary financial institutions

18%

25%23%

21%

Social network accounts as the hub of your financial

information

15% 16%

9%11%

Millennials GenXersAffluent Millennials Affluent GenXers

Affluent Millennials are less likely to anticipate another financial crisis, perhaps in turn driving their higher confidence in Australia’s future economic growth and resulting opportunities for personal financial success.

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Affluent Millennials have especially high confidence in economic growth

28%

36% 35%

47%

I anticipate another financial crisis to occur


I am confident in my country's future economic growth

I believe the Australian Dream* is “definitely possible”

20%

39%

13%18%

14%

23%

12%18%

*The Australian Dream or Great Australian Dream is a belief that in Australia, home-ownership can lead to a better life and is an expression of success and security .

% Agree: My future success depends on the decisions I make now

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Affluent Millennials believe their current decisions will drive future success

MILLENNIALS GE NXE R S

Tota l : 46% Tota l : 35%Affluent : 54% Affluent : 48%

9

0.11

0.05

0.12

0.11

Affluent Millennials

Affluent GenXers

Short-term goal

Long-term goal

Short-term goal

Long-term goal

START A BUSINESSBUY A FIRST HOME

Affluent Millennials set ambitious goals for their lives

0.16

0.02

0.12

0.11

Affluent Millennials

Affluent GenXers

Short-term goal

Long-term goal

Short-term

Long-term goal

NET 28%

NET 13%

NET 26%

NET 11%

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Affluent Millennials far outpace Affluent GenXers in international education


PAST[ HAVE ALREADY DONE THIS ]

FUTURE[ PLAN TO DO THIS IN NEXT FEW YEARS ]

18%

13%

38%

31%

5%

5%

6%

5%

7%

11%

16%

18%

4%

6%

10%

14%

Travel abroad for further

EDUCATION

Travel abroad for a

GAP YEAR

I N D E P E N D E N T, Y E T S E E K I N G G U I D A N C E :

For Affluent Millennials, Their Financial Future Starts Now

Sources of affluence are shifting across generations

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Compared to Affluent Gen X, Affluent Millennials are especially likely to have gained assets from:

2.5xSUPERANNUATION

2.7xWAGES (FAMILY BUSINESS)

3.4xINHERITANCE / TRUST FUND

*Excluding mortgage

Affluent Millennials are more than twice as likely as Affluent Gen X to have at least one non-mortgage loan* (50%, 21%).

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Affluent Millennials are more likely to carry debt

HAVE AT LEAST ONE…

Personal loan Student loan Business loan

21%24%

7%

32%

27%

19%

8%6%

1%

Millennials Affluent Millennials Affluent GenXers

19X

Nearly 1 in 3 Affluent Millennials save the majority of their pay

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Affluent Millennials are more likely to save most of their monthly paycheck% OF PAYCHECK SAVED PER MONTH

Affluent Millennials Affluent GenXers

50%+

30% 18%

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Only 1 in 10 Emerging Affluent* Millennials has a brokerage account, highlighting the importance for financial institutions to build relationships early while Millennials grow their wealth.

Affluent Millennials are on par with Affluent Gen X when it comes to brokerage account ownership, but there is significant room for opportunity

*Emerging Affluent = $25K-$100K in investible assets


23%

22%

HAVE AT LEAST ONEBROKERAGE

ACCOUNT

40%

30%

HAVE MORE THAN ONE SUPERANNUATION

ACCOUNT

vs. 24% of all GenX

vs. 23% of all Millennials

ACCOUNT OWNERSHIP:

42%

48%

Affluent Millennials seek greater involvement and control in financial decisions

51% 50%

43%40%

AF

FL

UE

NT

M

ILL

EN

NIA

LS

AF

FL

UE

NT

G

EN

X

MIL

LE

NN

IAL

S

GE

NX

51%

16

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

investment decision

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

and execute trades

38%40%

AF

FL

UE

NT

M

ILL

EN

NIA

LS

AF

FL

UE

NT

G

EN

X

MIL

LE

NN

IAL

S

GE

NX

MIL

LE

NN

IAL

S

GE

NX

0.08

0.26

0.33

0.51

0.6

0.24

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 advisor for their current assets.

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Affluent Millennials are more than three times as likely to consider financial advisors a current “must-have,” compared to Affluent GenX

AFFLUENT MILLENNIALS

AFFLUENT GENXERS

Must-have Nice to have Unimportant


A FINANCIAL ADVISOR IS A…

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The majority would be willing to take their business elsewhere if presented with better solutions, but Affluent Millennials are more likely to stay loyal to financial institutions once they’re customers.

Affluent Millennials are loyal to financial companies they work with

20%

30%

61%

60%

20%

11%

Somewhat loyal:would take business elsewhere for better products or services

Very loyal:plan to do business with them in the next few years

Not loyal: actively seeking to switch business to other companies

AFFLUENT MILLENNIALS

AFFLUENT GENXERS

90%

76%

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Affluent Millennials’ loyalty as customers isn't surprising when we see that they are more likely to trust financial institutions they work with.

% WHO TRUST THEIR CURRENT FINANCIAL INSTITUTIONS

*Trust = 50% or higher

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46%

52%

29%31%“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

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

H I G H E X P E C TAT I O N S & B I G D E M A N D S :

Affluent Millennials Want A Deeper ConnectionWith Financial Services Providers

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

ONLINE REPUTATION

Company has positive online

buzz

SOCIAL PRESENCE

Company has a page

on various social platforms

INFLUENCEMembers of your

family use the financial institution

MISSIONCompany has a

social mission and contributes to social causes

SERVICECompany provides online live chat for customer service

questions

TOP 5 FACTORS OF UNIQUE IMPORTANCE TO AFFLUENT MILLENNIALS

5X AS LIKELY2X AS LIKELY

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One in three Affluent Millennials considers social networks a “must-have”

20%

18%

33%

30%

39%

42%

49%

48%

41%

41%

18%

22%MILLENNIALS

GENXERS

AFFLUENTMILLENNIALS

AFFLUENTGENXERS



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

Use social networks to inform finance /

Investment decisions

2xVisit a financial

company’s page on a social network

3.4x Seek content from financial companies

on social networks

2x

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

Thought leadership, educational content, and product reviews are top content for Affluent Millennials on social networks

THOUGHT LEADERSHIP

71%

27%


EDUCATIONAL CONTENT ABOUT PERSONAL LOANS

56%

11%

EXPERT OPINIONS OR COMMENTARY

50%

14%

25

2.5X

5X 3.5X

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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

T H A N K Y O U

Marketing

Winning Affluent Millennials