A new study reveals the emergence of “Gen MX,” a new segment of higher-income Gen Xers and senior millennials share strikingly similar banking behaviors and who are increasingly transferring their personal preferences for digital channels into all areas of how they bank and run their businesses.
These were among the findings of FIS’ third annual Performance Against Customer Expectations (PACE) report, which surveyed consumers on how well their banking providers are meeting their needs.
The PACE survey asked consumers in various age demographics – millennials, Gen Xers and baby boomers – to rank the importance of key attributes to their banking experience and how well their banks are meeting those attributes.
For the first time, the 2017 study also broke down the millennial demographic into younger and senior segments.
The study revealed that senior millennials (age 26-36) and Gen Xers (age 37-51) in the U.S., the U.K., Germany and other countries share striking similarities in terms of their banking preferences and behaviors:
• They are more likely than other age groups to use regional banks as their primary financial institutions.
• They share, in the same order, the 10 most important attributes that they want most from their banks, ranging from safety and security at the top to simplicity, transparency, omnichannel options, and ability to anticipate and meet their financial needs.
• Three-quarters of their banking contacts are handled via online and mobile channels, and they do more than twice as many mobile banking interactions as baby boomers, on average.
• Nearly two-thirds of senior millennials and half of Gen Xers have at least one major life event planned within the next two to three years that will affect their finances.
• Both segments indicated a significant preference for using their primary banking provider as their first choice of where to turn for assistance with their finances.
Other key findings from the 2017 study:
• Banking consumers globally place the highest importance on safety, security, fairness and anytime/anywhere access to their finances, in that order. These top four attributes and their rankings haven’t changed in the three years FIS has done this study.
• Digital payments increased to the eighth most important attribute to respondents, up from 12th in 2015 and 2016.
• Simplicity continues its rise in importance amongst consumers, rising to sixth most important attribute from eighth most important in 2015.
• Mobile payments – from shopping to person-to-person money movement – showed the strongest growth of any payment type from 2016 to 2017.
• The younger a consumer, the more likely they are to be unhappy with their financial institution. At the same time, younger people also report making more contacts with their banks than older generations.
• The U.K. had the highest percentage of “financially unhealthy” respondents at 23 percent, followed by Australia (22 percent), Canada (18 percent), and U.S. (17 percent).