As the Covid-19 pandemic continues to financially test households across the country, recent research has shown there might be one generation that’s finding it harder than others.
According to new research by J.D Power, millennials are more likely to be financially stressed compared to older Aussies. Almost half (41%) of millennials reported to have high or moderate levels of stress.
One in five also said they were dissatisfied with their current financial situation and struggle with managing their finances.
“Millennial finances have been hardest hit by the pandemic and it will take time for their personal financial condition to recover,” said Bronwyn Gill, head of banking and payments intelligence at J.D. Power Australia.
But despite these feelings of uncertainty, 16% of millennials have taken the initiative to switch banks within the last twelve months. Lack of competitive interest rates and too many fees were two of the top reasons for switching at 15% and 13%, respectively.
A bank’s reputation was also of high importance to 6% of younger Aussies, as they would be willing to switch based on how often banks were negatively represented in the media.
NAB leading the way for customer satisfaction
Between innovative apps and catchy designs, millennials have different standards when it comes to banking.
So when it comes to which of the big four banks are getting things right by their younger customers, NAB scored a customer satisfaction rating of 806 out of 1000, followed by CommBank (799), ANZ (792) and Westpac (767).
How the banks can step up for millennials
The report revealed that millennials currently make up 32% of all banking customers, which Gill says gives banks the perfect opportunity to build and maintain lifelong customers.
“Banks have an important role to support the financial wellbeing of millennials, which will establish customer relationships built on trust that will see them remain loyal into the future,” she said.
“With a customer base that is much more likely to switch banks than any preceding generation, this is the perfect opportunity to genuinely support and build lifelong customers.”
Thinking your bank account could do with an upgrade? Then head on over to our bank account comparison tool to make the switch today!