Quickly discover the millennial credit trends and insights you need to know as we take a deeper look at millennials and credit.

1. millennials
AND CREDIT
A DEEPER LOOK AT

2. WHO ARE THEY?
WHAT DO THEY WANT?
WHAT DO THEY THINK OF BANKING AND CREDIT?
HOW DO YOU TARGET THE RIGHT MILLENNIALS?
WHAT ABOUT THIN-FILE MILLENNIALS?
millennials

3. millennials
WHO ARE THEY?

4. BORN BETWEEN
1980-1995
Diverse
Self-expressive #selfie
Generally Optimistic
Socially Conscious
Travellers/Jetsetters
Foodies

5. 80Mmillennials
=25% of US
population
Millennials are now
the LARGEST generation,
surpassing Baby Boomers.
$
200Bannual buying power
21%
of US discretionary spend
=

6. They’re cash hoarders and
conservative investors.
Millennials
keep 52%
of savings
in cash!
Source: The Intelligence Group, September 2012
Delotte 2014 Millennial Survey

7. They (on average) spend 2 hours a day on
their smartphone, which equates to 765.9M hours
per week of captivation on their mini-screens.
Raised in the digital age,
more than anything
Millennials are tech-dependent
MILLENNIALS
765,919,000
Generation X
557,578,000
Baby Boomers
499,866,000
Silent Generation
60,845,000
TOTAL HOURS
of Smartphone
Weekly Use

8. banking and credit?
WHAT DO THEY THINK OF

9. They’ve
been slow
to adopt
credit …
Chalk it up to...
the Great Recession,
hefty student loans
or stricter regulations
surrounding credit card
marketing to
younger adults.
The numbers speak
for themselves.
In 2014, less than 50% of all 19 year olds had
established credit, compared with 80% in 2006.
19 20 21 22 23 24
Age of Consumer ■ 2006 ■ 2010 ■ 2014
1
2
3
4
5
Millions of
Consumers
2.2MM(<50%)
4.6MM19-yearoldsEstablishCredit(80%)

10. And their credit scores lag behind
their Gen X and Boomer counterparts.
*VantageScore 3.0 was used for this study. The score range is 300-850.
**Includes credit cards, mortgage, auto loans and personal loans/student loans.
***Calculated using Experian’s Income Insight.
Average
VantageScore*
Average Debt**
Average Debt
(Excl Mortgage)
Estimated
Avg Income***
Bankcard
Balances
Bankcard
Utilization
Millennials
(Age 19-34) 625 $52,120 $26,485 $34,430 $3,403 43%
Generation X
(Age 35-49) 650 $125,000 $26,670 $50,400 $6,752 41%
Baby Boomers
& Greatest
Generation
(Age 50+)
709 $87,438 $19,217 $46,340 $5,603 25%
National
Average 667 $88.313 $23,089 $46,790 $5,340 34%

11. Gen X
46%
Gen Y
27%
Bankcard Utilization
is also down ...
46% of Gen X’ers had bankcards
when they were 18-34, compared
to today’s millennials at 27%.
And when they do have a card,
balances are lower compared to
other generations.

12. But as they come of age – graduating, buying homes,
starting families and moving up the career ladder –
millennials’ financial needs
are growing.
7% Buy first home (208)
6% Sell or change home (129)
16% Change to a better job (194)
7% Change to a different job (180)
7% Graduate from school (263)
6% Enroll/return to college (223)
5% Buy/lease new car/truck (117)
11% Buy used car/truck (145)
7% Get married (214)
Events expected to experience in next 12 months*
Comparisons made vs. all adults. *Among events with at least 5% frequency.

13. millennials
WHAT DO THEY WANT?

14. They expect
real-time responses
to their specific needs and make important
financial decisions based on social feedback
and collaboration.

15. They expect a
more personalized
experience,
one where products are recommended
based on past behaviors and excellent
values are presented routinely.

16. Millennials
expect lenders to:
Make the offer relevant.
Think long-term.
Give honest feedback.
Be consistent.
Provide online financial education
and management tools.

17. They want to conduct
their affairs on a
smartphone; not
at a bank branch.
Approximately 40% of
all consumers who use finance apps
or visit mobile finance websites are…
you guessed it …Millennials.
Source: EMS Financial Outlook Study

18. 71%would rather go
to the dentist than listen
to what banks are saying.
A third of
young adults
are ready to
switch banks
in the next
90 days
Source: Millennial Disruption Survey

19. 73%
prefer new finance
products from
tech companies.
They’d prefer financial
services from the likes
of Google, Amazon,
and PayPal.
Source: Millennial Disruption Survey
68%
believe within 5 years
the way we access
our money will be
totally different.

20. the right millennials?
HOW DO YOU TARGET

21. The college-educated
crowd is a great
place to start.
College-educated Millennials
appreciate financial security
and will likely be good candidates for
multiple products within a company.
(Fall 2013 Simmons Connect study)
84%
HOLD JOBS
87%
FULL TIME
$52,700
AVERAGE INDIVIDUAL INCOME

22. Know your
audience.
Banks are the repository
of customers’ financial
information.
They see:
the day-to-day
transaction records;
information about
money in, money out;
salary deposits,
tax payments;
and tuition and
education loans.

23. Access to these vast
data sets can be used to
personalize the
digital customer
experience.
Precision-targeting tools give you
the information needed to create
a complete financial picture of
Millennial prospects.

24. Serve up the
right offers.
Insights will help you gain a
greater share of wallet with this
influential and growing group.

25. thin-file millennials?
WHAT ABOUT

26. It might
appear daunting
to assess
the thin-file
Millennial.
With fewer trade lines,
their missteps are amplified.
A skipped payment
or high-credit utilization
hurt exponentially more.

27. Risk-based pricing strategies,
using tools like
Extended View,
can identify unique credit offers
to “right size” the thin-file
candidate and assign the
appropriate credit limits.

28. Prescreen individuals before
they apply to match Millennials
with the products that best meet
their credit profile.
Instant Prescreen
enables lenders to target ...
the Right Consumer
at Right Time with
the Right Offer.

29. Prequalification,
a consumer-friendly option,
can be added to your decisioning toolkit.
The consumer consent-based
credit inquiry allows lenders to match a
consumer with the best option
before the application process,
and it takes just seconds.
The conversion of approved
prequalification inquiries is 52%,
representing a significant upsell
opportunity for lenders.

30. So while Millennials may
have had a slow credit start,
no one can deny they are
coming of age.
The question is –
who will be
ready and
willing to
partner with
this massive
market?

31. To learn more about Experian’s Millennial Insights, visit
www.experian.com/millennials