Decoding Millennials’ Financial Preferences and Behaviors

Millennials and Generation X control more than half of overall buying power in the United States. However Millennials and Gen Xers exhibit vastly different preferences for credit products.  

Lenders must understand these differences in order to acquire engage and retain millennial customers. Difference number one millennials carry to fewer credit cards than Gen Xers did when they were the same age. Due to the increased use of debit cards the ease of online loan origination and the CARD Act of 2009 credit cards simply aren’t as popular with millennials. Difference number two millennials are opening half as many mortgages as Gen Xers did. This downtick has driven by lower income levels and stricter underwriting post recession. Still 75 percent of millennials do plan to purchase a home in the future.

Difference number three Millennials are opening 20 percent more auto loans and 100 percent more personal loans than Generation X. Digitization has allowed for tech savvy millennials to shop around for vehicles take advantage of low interest rates and seek out fintech for attractive personal loan offers.

 

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