India is attributed as one of the fastest growing countries fuelled by the robust growth in the economy. The emerging class of people drawing the attention of financial institutions is affluent millennials who are not wary of using debt funds for their lifestyle needs and entrepreneurial ventures. It emerged that 68 per cent of this group owns at least one credit card, 52 per cent have a personal loan and given their entrepreneurial spirit, 27 per cent have a business loan. This was highlighted in a joint study by LinkedIn and MEC, in partnership by Ipsos.
The same is evident from the quantum of disposable income of Indians and the recent change in their habits. It is the behaviour and attitudes towards investments of affluent millennials that is driving the economy. The study analyses how the same could reshape the future of the financial services industry in India.
Nevertheless, the investment decisions of millennials are well thought and well researched. The study pointed that 54 per cent of affluent Millennials conduct their own research before making an investment and also consult with an advisor to validate before they take a decision.
There are 86 per cent of the affluents who use social media for financial information. Specifically, peer opinion at 93 per cent, thought leadership at 92 per cent and informational resources at 90 per cent, is the content that affluent millennials are looking for on their social networks.
“Majority of the millennials consider themselves global citizens who are digitally savvy and constantly looking for information. Our study revealed that, 60 per cent of this group consider social networks as a must have for making a financial decision. For financial services providers this translates into two key takeaways, building stronger relations with the affluent millennials and generating relevant content online,” said Ashutosh Gupta, Director of Marketing Solutions at LinkedIn India.
The report also highlights the trend of inheritance and said that affluent millennials are 1.8 times more likely to have gained their wealth from royalties, 1.6 times gained from self-employment, and 1.4 times from grants and scholarships. Hence, their dependence on regular salaries is substantially low.
There were several insights on the loyalty to financial institutions of affluent millennials too. The study added that 51 per cent are more likely to say they are very loyal and plan to do more business with financial institutions they work with.
It is evident from the study that financial institutions in India have immense opportunities to be explored with the affluent millennials given their dynamic behavioural patterns. Going forward, financial institutions may seek to tweak their marketing strategies accordingly and make their approach more personalised for the affluent millennials in India.
“Millennials are an incredibly crucial audience for marketers and that makes this a very important study. For the very first time, we have deep insights about how this generation views financial matters”, according to T. Gangadhar, Managing Director at MEC India.
ERRATUM: An incorrect reference to Millennial Media was made in the previous version of the report. The error, now rectified, is regretted.