COSTA MESA, Calif. (11/9/15)--Better alternatives from other financial institutions will sway 75% of millennials to switch their accounts, according to a recent Experian survey.
Nearly half are looking for financial companies and services that better meet their needs, according to the first of two reports from Experian’s survey of more than 1,000 consumers age 19-34 about personal finance.
Credit unions have some of the characteristics that are attractive to millennials looking to switch. Incentives to change financial institutions include better interest rates (47%), better reward programs (43%), better identity protection (32%) and better customer service (35%).
“The survey also showed that millennials will abandon loyalty for better products and services, which is something the entire financial services sector should consider; the pressure is on to keep innovating,” said Guy Abramo, Experian Consumer Services president.
Fifty-seven percent of millennials are willing to use alternative companies or services that innovate to better meet their needs. Non-bank lenders such as Prosper and Lending Tree have brand familiarity with 39% of respondents, with 13% already using these services.
Nearly half reported they would use alternative lenders that have easier application processes, less reliance on credit scores, more accessibility and are digitally savvy.