Born between 1981 and 1996 (ages 29-44), Millennials grew up amid economic uncertainty, evolving ideas of success and a technological revolution. They saw the rise of the internet, smartphones and social media—all things that changed the way we communicate and manage money. The dot-com bust, the Great Recession and rising housing costs have made financial stability (and the American Dream) harder for them to reach.
Millennials have responded with both caution and ambition. They’re carving new paths to financial security, embracing entrepreneurship and side hustles to achieve their goals, and they want their financial institution to adapt to their reality.
Early Banking Experiences
Research by Apiture shows that 69% of Millennials use a large bank as their primary financial institution. For many, their first banking experiences were online, with few branch visits. This shaped their expectations of intuitive, reliable digital solutions.
Many Millennials carry student loan debt, averaging $33,150. Only 55% are homeowners, compared to 73% of Gen X and 80% of Baby Boomers. Nearly 60% worry about finances (compared to just 37% of Boomers) and, as a result, are delaying major life events like getting married and starting a family. This puts them on a very different financial trajectory than their Gen X and Baby Boomer counterparts, forcing banks and credit unions to rethink and revamp many of their offerings.
Early online banking shaped a generation’s habits and expectations—simple, secure, and always within reach.
Banking Preferences and Expectations
Millennials’ preferences are shaped by their digital and life experiences. Security, personalization and convenience rank among their top priorities:
- Security: 54% say top-notch security is critical when choosing a financial institution.
- Digital Banking: 51% prioritize robust digital tools, and 41% want to be able to open an account online.
- Personalization: Growing up with targeted ads and tailored social media feeds has conditioned Millennials to expect customized financial products and services.
- Integration: 22% want digital solutions that work with digital wallets or wearable devices.
Like Gen X, Millennials are drawn to tangible perks such as cashback, discounts and debit card rewards. They’re also likelier to try new financial products like Buy Now, Pay Later (BNPL). In fact, more than 4 out of 10 Millennials have used BPNL to fund a purchase in the past two years.
Digital Habits and Channel Usage
Digital tools are central to Millennials’ financial lives, with 81% citing them as the core of their banking preferences. Mobile apps are by far the preferred banking method for 75%, trailed by online via computer (13%), in-branch (10%) and by phone call (3%). This strong preference for mobile access stands in sharp contrast to Baby Boomers (38%) and Gen X (54%).
The mobile banking features used most by Millennials are:
- paying bills (82%)
- transferring money between their accounts (67%)
- tracking spending (64%)
- depositing checks (60%)
- transferring money to friends or family (60%)
Unsurprisingly, in-branch banking is uncommon for this generation, with 45% unable to remember the last time they visited a branch. However, they still appreciate human interaction (at branches and through video or chat support) for guidance and reassurance.
Millennials use their credit card more frequently than other generations, with 36% reporting they use a card one or more times per day. They’re also the most likely group to have missed a credit card payment within the last 12 months (34%), and for most of those that have, it’s a source of significant concern. A reliable overdraft solution and access to small-dollar, short-term loans can help Millennials avoid incurring high credit card interest and fees.
Note: Younger Millennials, part of a microgeneration called Zillennials, tend to have banking habits similar to Gen Z. They show strong financial literacy, but have poor overall financial health.
A generation shaped by smartphones expects banking to be mobile, intuitive, and always accessible.
Loyalty & Engagement
While 75% of Millennials are satisfied with their primary financial institution, around one-third are willing to switch for better digital experiences, trust or brand reputation.
Because they rely most on friends and family for financial advice (55%), Millennials can be particularly receptive to referrals from people they trust. 43% of Millennials trust social media as a source for financial advice, so these channels can also be a powerful way to engage and build loyalty. Additional studies show that 41% rely on their financial institution for guidance, and 38% turn to personal finance websites. Whatever the medium, timely communication and clear education remain essential to engagement.
When researching new products or services, Millennials typically get information from their bank’s website, an online search or their bank’s mobile app. This makes targeted digital messaging about relevant products and services another essential engagement strategy.
Opportunities to Connect with and Engage Millennials
To build loyalty among Millennials, community banks and credit unions can:
- Highlight Security and Reliability: Security is critical to Millennials, particularly identity protection and fraud prevention. Promoting your financial institution’s safeguards can ease worry and build trust.
- Support Entrepreneurship and Side Hustles: Millennials often have multiple income streams from gig work. Products and services that address their flexible (and sometimes unpredictable) incomes, including tailored overdraft protection and quick, small-dollar loans, show you understand their reality.
- Offer Digital Tools with Personal Support: Millennials love the convenience and personalization of digital banking, but also want video or in-person consultations for complex decisions.
- Deliver Next-Gen Technology: Only 58% of Millennials are happy with their financial institution’s digital banking capabilities. Use AI, data intelligence, digital wallets and integration with their wearable devices to meet their expectations.
- Simplify Account Setup: Streamline digital account openings, onboarding and payments to capture new primary relationships.
For many Millennials, banking isn’t just about managing money—it’s about building dreams.
Takeaways
Millennials have reshaped the financial landscape over the past several years as they’ve navigated unique economic pressures and delayed milestones. For community banks and credit unions, serving Millennials effectively means:
- Offering digital-first tools that are seamless, secure and personalized.
- Providing guidance and education to close financial literacy gaps.
- Supporting their entrepreneurial and side-hustle lifestyles by offering flexible products and consumer liquidity services that meet their needs.
- Blending technology with access to real people to build trust and engagement.
Knowing Millennials and what they want from their banking experience helps you better connect with a generation whose choices will shape markets and influence younger consumers for years to come.
Looking Ahead
In the final part of our series, we’ll focus on Gen Z and their unique banking expectations.
In the meantime, check out Winning the Battle for Deposits for more ways to strengthen relationships and drive growth across generations.
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