Posted On May 31, 2012
Nearly half of Millennials are “under-banked,” according to a study by Think Finance, and are choosing to use financial convenience products rather than traditional banking services. Under-banked Millennials are spread evenly across income brackets all the way up to those making relatively high salaries (for their age), up to $75K a year.
Under-banked Millennials are opting for instant gratification and ease of use through check cashers, payday loans, and prepaid debit cards. As a result, they are utilizing services that are more expensive but faster and easier than traditional banking. Subjects in the study say they find traditional banking too time-consuming, inconvenient, and “stressful.” Said one Millennial about her experience with a bank loan application, “They wouldn’t confirm right away. … You’re there sitting and you need the money, and you’re like, … is this going to happen or not?”