The Baby Boomer and Millennial Generations: Attitudes Toward Banking. Published: January 2010

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1 The Baby Boomer and Millennial Generations: Attitudes Toward Banking Published: January 2010

2 Survey Methodology DATA COLLECTION DATES: August 23 30, 2009 METHOD: Telephone survey SAMPLE SIZE: 300 U.S. adults, age Millenials and 303 U.S. adults age Baby Boomers SAMPLE: A total of 603 interviews were conducted in the U.S. The estimated margin of error for 603 interviews is ±4.1 percentage points for proportions near 50% at the 95% confidence level. Following are the estimated margins of error for key subgroups: Millennials (N=300): ±5.7 percentage points; Baby Boomers (N=303): ±5.6 percentage points

4 When it comes to financial institutions, Millennials generally have more favorable opinions than Baby Boomers. % Favorable opinion of the following institutions Community banks Credit unions Local insurance agencies or brokers Local community financial advisors or planners Large national insurance companies Large national banks Large consumer investment firms Independent brokerage firms Large Wall Street investment banks Hedge funds

Millennials are more likely than Baby Boomers to describe the U.S. banking system as providing a good customer experience and as having a good public image. % Describes U.S. banking system well The U.

5 Millennials are more likely than Baby Boomers to describe the U.S. banking system as providing a good customer experience and as having a good public image. % Describes U.S. banking system well The U.S. banking system provides a good customer experience The U.S. banking system is trustworthy The U.S. banking system is in touch with your generation The U.S. banking system is stable The U.S. banking system is transparent with its customers The U.S. banking system has a good public image

6 The majority of Millennials and Baby Boomers say their trust in the U.S. banking system has decreased over the past year.

7 However, when it comes to the U.S. government, the majority of Baby Boomers say their level of trust decreased over the past year, which is much greater than Millennials.

8 Millennials are much more likely than Baby Boomers to use almost all of the online and technology products asked about. % Frequently or occasionally use technology product Mobile phone Web-based searches Web-based Text messaging on mobile phone Wikipedia or other online reference sites An MP3 player Instant messenger Social networking websites Personal website A smartphone or PDA Personal blogs Skype or other Internet phone services Micro-blogging such as Twitter Virtual worlds such as Second Life, etc.

Baby Boomers are more likely than Millennials to have life insurance, stocks, bonds or mutual funds, CDs or time certificates, a retirement plan like a 401K or IRA, and a mortgage loan.

9 Baby Boomers are more likely than Millennials to have life insurance, stocks, bonds or mutual funds, CDs or time certificates, a retirement plan like a 401K or IRA, and a mortgage loan. % Currently have product Checking account Savings account Debit card Credit card Life insurance Retirement plan like a 401K or IRA Stocks, Bonds or Mutual Funds Mortgage loan RV, car or boat loan CDs or time certificates Credit insurance

10 Millennials are more likely than Baby Boomers to use ATMs or interact with their bank over the phone, talking to an agent. % Interact with bank frequently or occasionally in the following ways In-person at the bank branch ATM Phone by mobile or home phone, talking to an agent Web banking by using a PC or phone browser Through the U.S. mail Interactive voice response via mobile or home phone on a PC Using a mobile phone to text your bank Social and new media on a PC Instant messaging with an agent on a PC

11 Millennials find access to ATMs and online service capabilities more important than Baby Boomers. Customer service Rates and fees Superior security against ID fraud Access to branches Insurance on deposit accounts Access to ATMs Number of years in business Online service capabilities Product selection Large customer deposit base Personal references from family and friends Mobile service capabilities % Find important when opening a new account

12 Baby Boomers are more likely than Millennials to prefer getting their account balance in-person. Getting your account balance Web-banking In-person Talking to agent using a home or mobile phone U.S. mail ATM Texting on mobile phone Don t know/refused (VOL.)

13 Both Millennials and Baby Boomers prefer to use web-banking the most for reviewing statement and account activity. Reviewing statement and account activity Web-banking U.S. mail In-person Talking to agent using a home or mobile phone ATM Texting on mobile phone Don t know/refused (VOL.)

14 Millennials and Baby Boomers have similar attitudes when it comes to their preferred way to pay bills. However, from a directional standpoint, Baby Boomers prefer the mail, while Millennials prefer the Internet. Paying bills Web-banking U.S. mail In-person Talking to agent using a home or mobile phone ATM Texting on mobile phone Don t know/refused (VOL.)

Millennials are much more likely than Baby Boomers to prefer that their account alerts are sent through email.

15 Millennials are much more likely than Baby Boomers to prefer that their account alerts are sent through . Receiving account alerts (fraud alerts, rate alerts) Web-banking Talking to agent using home or mobile phone In-person U.S. mail Texting on mobile phone ATM Don t know/refused (VOL.)

16 Both Millennials and Baby Boomers prefer interacting with a customer service representative inperson. Interacting with a customer service representative to ask questions or solve problems In-person Talking to agent using a home or mobile phone Web-banking Texting on mobile phone U.S. mail ATM Don t know/refused (VOL.)

17 When it comes to funds transfer, Millennials are more likely than Baby Boomers to prefer using web-banking, while Baby Boomers are more likely to prefer doing it in-person. Transferring funds between accounts Web-banking In-person Talking to agent using a home or mobile phone ATM Texting on mobile phone U.S. mail Don t know/refused (VOL.)

18 When it comes to financial advice, both Millennials and Baby Boomers would prefer to receive it in-person. Receiving Financial Advice In-person Talking to agent using a home or mobile phone Web-banking U.S. mail Texting on mobile phone Don t know/refused (VOL.)

19 Web-banking and in-person are the two most preferred ways to research new financial products or services. Researching new financial products or services Web-banking In-person U.S. mail Talking to agent using a home or mobile phone ATM Texting on mobile phone Social or new media Don t know/refused (VOL.)

20 Both Millennials and Baby Boomers prefer opening a new account or applying for a loan in-person. Opening a new account or applying for a loan In-person Talking to agent using a home or mobile phone Web-banking U.S. mail Texting on mobile phone Don t know/refused (VOL.)

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21 2008 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Unit 3 - Financial Services

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