NASHVILLE, Tenn.--(BUSINESS WIRE)--iQuantifi, the RoboPlanner™ enabling financial institutions to provide all customers with automated and comprehensive financial planning and investment advice, announced today the results of its second annual survey on the financial habits of millennials, revealing surprising findings within this generation’s expectations of financial institutions, willingness to change financial service providers, and demand for forward-looking financial planning tools.
The 2016 Millennial Money Mindset Survey, conducted in partnership with Middle Tennessee State University, revealed that 70% of millennials surveyed indicated that they plan to purchase or open a new financial product in the next 12 months. The study also revealed that millennials have high expectations for providers of financial services, and are willing to shop around for the most competitive offerings.
36% of respondents said they are likely or very likely to switch primary financial institutions in the next 12 months. Moreover, 55.5% of millennials that make over $75,000 said they are likely or very likely to switch primary financial institutions during the next calendar year. 30.6% of millennials say they currently use a financial product provided by an institution that isn’t their primary bank or credit union.
The results collected in this study present both a problem and opportunity for traditional financial institutions. A significant percentage of millennials surveyed say they are willing to leave their current bank as their advising needs are not being met. 75% of participants wished their financial institution offered more guidance and tools to help them manage their finances, with 81% indicating they would use an app or online tool offered by their financial institution if it provided comprehensive advice.
"Debts, especially student loans, are driving millennials to focus on their finances at a younger age," said Tom White, iQuantifi's CEO and Co-Founder. “Our study found a significant decrease in millennials’ average individual debt burden over just last year. We believe that this generation has been forced to tackle significant financial obstacles and is searching for financial guidance and knowledge to help them do so. There is now considerable demand for financial advice, which could easily be met by automated software platforms and apps. This presents a tremendous opportunity for banks, credit unions and other institutions to attract and retain millennials by offering comprehensive goal-based planning services online.”
A year-over-year shift in millennials’ financial priorities and spending habits also seem to indicate a more forward-looking mentality among those surveyed. While 70% of millennials indicated that they carry debt, the total average debt for all respondents was $43,264 - down 9.3% from the $47,689 found in iQuantifi’s 2015 Millennial Money Mindset Survey.
To view the complete results of iQuantifi’s 2016 Millennial Money Mindset Survey, please follow this link: http://iquantifi.com/2016-millennials-money-mindset-report/
The results released in this report are based on a nationwide online survey of 500 randomly selected Americans between the ages of 21 and 35, collected January 12 through January 16, 2016. Respondents were randomly selected using a nationwide sample panel from Qualtrics. With a sample of 500 respondents, we can say with 95% confidence that the amount of survey error due to taking a random sample instead of surveying all members of the population is ± 4.4%.
iQuantifi is a virtual financial advisor that provides comprehensive, personalized and automated financial advice to millennials and young families. The platform's proprietary algorithmic engine is deployed via financial institutions to provide each user with the advice they need to identify, prioritize and achieve their financial goals. iQuantifi is dynamic and adapts to a user's changing financial situation in real-time. The firm was founded by Tom and Karen White and is headquartered in Nashville, Tennessee. To learn more, visit www.iquantifi.com.
About Middle Tennessee State University (MTSU)
Founded in 1911 as one of three state normal schools for teacher training, MTSU is the oldest and largest undergraduate university in the Tennessee Board of Regents System.
With an enrollment of more than 22,000 students, MTSU remains committed to providing individualized service in an exciting and nurturing atmosphere where student success is the top priority. With a wide variety of nationally recognized academic degree programs at the baccalaureate, master's and doctoral levels, MTSU takes pride in educating the best and the brightest students from Tennessee and around the world. Learn more at www.mtsu.edu.