According to Klarna, millennials are managing their finances unlike any other generation. FinTech investigates.
In new research released from Europe’s biggest fintech, Klarna, titled “Money management in a new age”, it has been found that generation X, or “millennials” (ages 18-38) are leading the way in the redefinition of customer tastes in banking. The research was conducted across 10 markets, and Klarna engaged with over 20,000 consumers about their financial preferences and attitudes when managing money.
Perhaps unsurprisingly, millennials are leading the way with the adoption of technology when it comes to managing money. 78% of millennials say that technology has had a major impact on how they manage finances as opposed to previous generations, to which 67% of which agreed.
Particularly in the UK, discussing finances and salaries has always been something of a taboo. Yet this is changing, according to the Swedish fintech, who shares that millennials are far more likely to talk openly about finances as opposed to previous generations. 50% of millennials express the importance of openly discussing finances. This transparency extends to financial providers too. 27% of this generation expressed a firm need for clarity from financial providers – whether they are digital startups or traditional banks – particularly with regards to terms and conditions, saying that this will increase their trust and loyalty to a provider.
Viveka Söderbäck, Consumer Behaviour Expert at Klarna, said: “Every generation has its own identity. Technology evolves — as does how people work, live, and shop. Each generation also treats money differently.”
She continues, “While millennials tend to have the reputation of being less financially responsible, our research shows that this is not necessarily the case. Instead, they seem to be developing their own unique strategies for managing their money effectively.”
Did you know? Another interesting fact to emerge from the research is that cash very much remains king in Germany, Austria and Spain.
For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.