Generation Y 'prefers bigger banks'

Young Australians have more faith in bigger financial institutions, new research has found.

According to a study by Datamonitor, 74.2 per cent of Generation Y – meaning consumers aged between 18 and 30 – have a strong preference towards the four major banks for their transaction and savings accounts, News Limited reported.

In addition, it was found that members of Gen Y are more likely to compare savings accounts and switch providers based on the recommendations of friends.

Datamonitor senior analyst and author of the report Harry Senlitonga commented that young Australians are on the look-out for convenience, access to branches and more ATMs.

"Gen Ys are twice as receptive as Gen Xs (aged 31 to 50) to special offers on transaction accounts, and nearly four times more than retirees," he added.

Meanwhile, mortgage consultant Fiona Herbert recently told that prospective home buyers should take care to avoid overdrawing on savings accounts.

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