Indian affluent Millennials happy to take on debt to fund their lifestyle goals
Findings of ‘The Affluent Millennial Opportunity’ study suggest
Indian Affluent Millennials are optimistic, independent, open-minded and hungry for information
Despite the belief in the Indian Dream, there is a concern about a potential future financial crisis
Affluent Millennials consider social networks central to their financial decisions
LinkedIn, the world’s largest professional network with over 31 million members in India and 380 million globally, and MEC, a leading media agency, released ‘The Affluent Millennial Opportunity’ study in partnership with Ipsos. The study reveals how the behavior and attitudes of Affluent Millennials* could reshape the future of the financial services industry.
The study revealed that Affluent Millennials are more likely to facilitate their entrepreneurial and life goals by opting for debt related financial products. According to the survey, 68% of this group owns at least one credit card and 52% have a personal loan. Given their entrepreneurial spirit, it is not a surprise that 27% have a business loan.
The dynamic, self-empowered and technologically advanced generation is a key driver of India’s economic growth. To help financial institutions nurture and deepen their relationships with the Affluent Millennials, here are some interesting insights from the study:
Independent and hungry for information
• 54% of Affluent Millennials said that they conduct their own research before making an investment, but consult with an advisor to validate before they take a decision
• 68% Affluent Millennials expect to be successful and advance quickly in their career through their own hard work – not through their country’s prosperity
• The study revealed that 86% of the Affluent Millennials use social media for obtaining financial information. They look for financial institution which offers a great degree of privacy and has a positive buzz online
• Peer opinion (93%), thought leadership (92%) and informational resources (90%) is the content Affluent Millennials want from accompany on social networks
Low dependence on salaries
• The source of affluence for this group is changing. Salaries are losing prominence as the primary source of wealth as compared to the GenX Affluents**. Affluent Millennials are 1.8 times more likely to have gained their wealth from royalties, 1.6 times from self-employment and 1.4 times by way of grants and scholarships.
High on loyalty
• They are highly loyal and trust the financial institution they work with and more than three quarters of Affluent Millennials with multiple checking accounts hold all of them at the same financial institution. This is much higher compared to GenX (31%)
• More than half of Affluent Millennials (51%) are more likely to say they are VERY loyal and plan to do more business with financial institutions they work with.
“Majority of the millennials consider themselves global citizens who are digitally savvy and constantly looking for information. Our study revealed that, 60% of this group consider social networks as a must have for making a financial decision. For financial services providers this translates into two key takeaways, building stronger relations with the Affluent Millennials and generating relevant content online,” said Ashutosh Gupta, Director of Marketing Solutions, LinkedIn India.
Given the unique and dynamic behavior patterns of the Affluent Millennials, there are a number of opportunities available to financial services companies to alter their marketing strategies. They need to personalize and socialize their approach, provide expert advice in order to establish trust and enable independence and build a loyal customer base at an early stage.
“Millennials are an incredibly crucial audience for marketers and that makes this a very important study. For the very first time, we have deep insights about how this generation views financial matters”, says Mr. T. Gangadhar, MD, MEC India