Live Webinar: Winning Affluent Millennials

Winning Millennials

HOW THIS POWER PERSONA IS RESHAPING THE INDUSTRY

Menaka ThillaiampalamHead of North America Marketing LinkedIn Marketing Solutions: Financial Services @menakathill

Emily FriedmanSenior Global Research ConsultantLinkedIn Insights

Marc KarasuVice President of Marketing Betterment

Donna SabinoSenior Vice President Ipsos @IpsosConnect

Guillermo MorroneVice President, Head of Global Consumer Content StrategyMasterCard@guillermoluis

Sachin RekhiAffluent Millennial & Entrepreneur@sachinrekhi

@LinkedInMktg #LinkedInAffluentMillennials

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Why Are Affluent Millennials Relevant?

- *A Golden Age Of Philanthropy Still Beckons: National Wealth Transfer and Potential for Philanthropy Technical Report; Center of Wealth and Philanthropy ; Boston College; May 2014- *Affluent Population Expands in Size, Spending Power & Marketplace Importance

AFFLUENT MILLENNIALS IN THE UNITED STATES

15.5 MILLION Spend $2 TRILLION annually

$59 TRILLION in generational transfer

of personal wealth

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Research Study Methodology

UNITED STATES RESULTSThis study and webinar covers results from 1,507 total respondents in the United States, including:

1,004 total Millennials (incl. 121 Affluent) and 503 total Gen X (incl. 150 Affluent).

GLOBAL SURVEY

20 minute online survey, fielded by LinkedIn and Ipsos in April 2015.

Survey measured usage, engagement, attitudes and opinions on financial services.

GLOBAL SAMPLE

9,200 respondents in 10 countries: United States, Canada, United Kingdom, France, Netherlands, Australia, India, Singapore, Hong Kong and Brazil.

Quota sampling/weighting applied to represent Internet users in each market.

CRITERIA

Respondents were Millennial (18-34) and Gen X (35-49) Internet users.

In the United States, Affluent is defined as $100K+ net investible assets, excluding real estate.

A M B I T I O U S , P R O G R E S S I V E & C O N F I D E N T

How This New Power Persona Is Reshaping The Finance Industry

While these views are still a minority across all groups, Affluent Millennials are especially likely to envision a cashless, sharing-based economy where banks are no longer their primary institutions.

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Affluent Millennials have a uniquely progressive view of future financial conditions

TOP 3 POINTS OF VARIATION IN FUTURE PREDICTIONS:

Cashless society-currency no longer used for transactions

19%

32%

21%23%

Banks will no longer be primary financial institutions

19%

27%

18% 18%

A sharing-based economy

10%

24%

8% 9%

Millennials GenXersAffluent Millennials Affluent GenXers

While more than half of both affluent groups anticipate another financial crisis, Affluent Millennials are significantly more likely to be confident in future economic growth and believe the American Dream* is definitely possible.

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Despite high expectations of a future financial crisis, Affluent Millennials are unparalleled in confidence


*The American Dream is typically defined as the ideal that every individual should have an equal opportunity to achieve success and prosperity through hard work, determination and initiative.

36%

59%

44%

51%

I anticipate another financial crisis to occur

I am confident in my country's future economic growth

I believe the American Dream* is “definitely possible”

24%

47%

18%

29%25%

44%

23%28%

% Agree: The sacrifices I make now will pay off in the future

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Affluent Millennials will sacrifice now for the future

MILLENNIALS GE NXE R S

Tota l : 57% Tota l : 48%Affluent : 72% Affluent : 57%

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Affluent Millennials Affluent GenXers

START A CHARITABLE FOUNDATION

START A BUSINESS

BUY A SECOND HOME

Affluent Millennials set ambitious goals for their lives

3X

3X19%

30%27%

6%

11%

18%

I N D E P E N D E N T, Y E T S E E K I N G G U I D A N C E :

For Affluent Millennials, Their Financial Future Starts Now

*Excluding mortgage

Two-thirds of Affluent Millennials have at least one loan* compared to half of Affluent Gen X

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Affluent Millennials are more likely to carry debt

HAVE AT LEAST ONE…

Credit card with a balance Personal loan Student loan Business loan

50%

18%

42%

8%

67%

43% 43%

35%

52%

16%

29%

4%

44%

18%23%

5%


7X

2X

Over 1/3 of Affluent Millennials save most of their paycheck

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Compared to Affluent GenXers, Affluent Millennials are twice as likely to save the majority of their paycheck each month% OF PAYCHECK SAVED PER MONTH

Affluent Millennials Affluent GenXers

50%+25%+

66%

35%31% 12%

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Affluent Millennials seek greater involvement and control in financial decisions

51%47%

41%38%

34%

50%

34%

40%A

FF

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51%

S O L O I S TPerform their own research, make decisions

and execute trades V A L I D A T O R

Conduct their own research and investment decision

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0.27

0.37

0.48

0.5

0.25

0.13

Despite their tendency to do their own research and seek information on financial decisions, Affluent Millennials are particularly likely to see value in having a financial advisor for their current assets.

Affluent Millennials consider financial advisors a must-have

AFFLUENT MILLENNIALS

AFFLUENT GENXERS

Must-have Nice to have Unimportant


A FINANCIAL ADVISOR IS A…

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Affluent Millennials are open to financial offerings from traditionally non-financial brands.

57%

69%

47% 47%“Millennials are different. They have grown up empowered and expect to have a more self-directed life. So they are looking for solutions, not products.”

- Mohamed El-Erian, Chief Economic Adviser, Allianz

MillennialsGenXers

Affluent MillennialsAffluent GenXers

% WHO WOULD TRY FINANCIAL OFFERINGS FROM NON-FINANCIAL BRANDS

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1 in 3 Affluent Millennials uses Apple Pay or Google Wallet; more than 3X vs. Affluent GenXers

Affluent Millennials have high adoption of NFC mobile payment platforms

BRAND BIZ: Which of these companies do you currently use?Base: All Respondents - Millennials (n=1,505), Gen X (n=805), Affluent Millennials (n=165), Affluent Gen X (n=254)

indicates significant difference at 95% level of confidence


12%

34%

8% 7%

16%

31%

10% 11%9%

25%

3%6%

H I G H E X P E C TAT I O N S & B I G D E M A N D S :

Affluent Millennials Want A Deeper ConnectionWith Financial Services Providers

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When choosing financial institutions, social presence and relationship history are uniquely important to Affluent Millennials

TOP 5 FACTORS OF UNIQUE IMPORTANCE TO AFFLUENT MILLENNIALS

2X AS LIKELY TO BE IMPORTANT TO AFF. MILLENNIALS VS. AFF. GENXERS:

SOCIAL PRESENCECompany has

positive online buzz

PURPOSECompany has a

community mission you care about

SOCIALCompany has a page on various

social platforms

INFLUENCEMembers of your

family use the financial institution

RELATIONSHIPFirst financial

institution you had an account with

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Affluent Millennials consider social networks a must-have

24%

24%

39%

26%

43%

45%

51%

50%

33%

31%

10%

25%MILLENNIALS

GENXERS

AFFLUENTMILLENNIALS

AFFLUENTGENXERS



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Social networks are central to Affluent Millennials’ financial decisionsCOMPARED TO AFFLUENT GENXERS, AFFLUENT MILLENNIALS ARE MORE LIKELY TO:

Use social networks to inform finance /

investment decisions

3x

Visit a financial company’s page on

a social network

3x

Seek content from financial companies on social networks

2x

Think social networks will be the

hub of their financial information

in the future

2x

For any type of financial information they consider

relevant to their needs, Affluent Millennials are

much more likely to acquire this through a

social network vs. Affluent GenXers:

Affluent Millennials are significantly more likely to seek relevant financial content on social networks

4xPersonal investing

Retirement 3xEducational

information about personal financial

planning 2.5xInformation about products/services

Expert opinions or commentary

2xEducational

content

Thought leadership content

Customer reviews

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Affluent Millennials are especially active on LinkedIn

COMPARED TO THE GENERAL POPULATION ON LINKEDIN, AFFLUENT MILLENNIALS ON LINKEDIN HAVE:

CONNECTIONS

COMPANY FOLLOWS

GROUP ACTIVITY

SHARES FINANCE TOPIC

SHARES

2X AS MANY 13X AS MANY

LinkedIn global behavioral data, May 2015

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Panel DiscussionMenaka ThillaiampalamHead of North America Marketing LinkedIn Marketing Solutions: Financial Services @menakathill

Emily FriedmanSenior Global Research ConsultantLinkedIn Insights

Marc KarasuVice President of MarketingBetterment

Donna SabinoSenior Vice President Ipsos @IpsosConnect

Guillermo MorroneVice President, Head of Global Consumer Content StrategyMasterCard@guillermoluis

Sachin RekhiAffluent Millennial & Entrepreneur@sachinrekhi

@LinkedInMktg #LinkedInAffluentMillennials

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QUESTIONS

T H A N K Y O Um a r k e t i n g . l i n k e d i n . c o m