Banking on Millennial Insights

Today at a Glance:

• Unbrand To Rebrand
• Millennial Myths, Banking Truths
• Pioneering The Future
• From Spark To Strategy
• Earnings Reveal Our Progress
• Fintech's Comeback with Revolut

We have been so fixated on Gen Z this year that we've ignored Millennials. (So much so, that I wrote about Gen Z in 3 out of the last 4 newsletters here, here, and here). Millennials are the largest cohort in the U.S. and Hiro's latest consumer research 'Marketing to Millennials' debunks several myths that many perceive.

Millennials are financially cautious, prioritizing stability before making significant life decisions like starting families or buying homes. They are highly engaged with social media, value experiences over possessions, and are deeply committed to social and cultural issues. This generation, often labeled as "Digital Pioneers," has embraced technological changes and expects brands to support inclusivity and sustainability. Ignoring these realities means missing out on effectively serving a critical and influential customer segment.

Unbrand To Rebrand

Before I dive into Hiro's amazing work, I am obsessed with Abercrombie's turnaround story. I feel there are so many lessons in this case study that our industry can learn from. And this correlates directly to how brands can (read: need to) reposition to meet Millennials the right way.

The Abercrombie brand, once an easy cultural punching bag, now brings in more revenue than it did when it dominated teen culture. Last year, sales reached $2.2 billion.

"So after years of telling American youth what was cool, Abercrombie finally shut up and listened to what its former customers wanted." One of the many?articles?on Abercrombie.

I have a lot of admiration for the ANF CMO (Carey Collins Krug) for pivoting this drastically and sales and stock performance are validating the moves.

Millennial Myths, Banking Truths

Switching back to the research at hand and using it to debunk some common myths.

Myth:?Millennials are financially irresponsible.

Reality:?Many Millennials are financially conservative and prioritize financial stability before making long-term commitments such as starting families. They are cautious spenders, often influenced by the economic downturns they have experienced.

Myth:?Millennials are not interested in homeownership.

Reality:?Millennials do have an interest in homeownership, but higher housing costs and urban living trends have delayed this milestone for many. A significant portion of Millennials own homes, although at slightly lower rates compared to previous generations of the same age.

Myth:?Millennials are overly influenced by social media.

Reality:?Although social media shapes their self-image, Millennials are also critical of its impact. They are aware of its curated nature and seek authenticity in their interactions and content.

A few other key takeaways:

Pioneering The Future

Next, I want to draw your attention to Emily's latest?New Product Innovations: Q2 2024

From Spark To Strategy

Andrew's latest recap of LinkedIn Posts is now available:?Lightbulb Moments: Spark Your Strategy (Vol.13)

As Chase (LAX), Capital One (JFK), and Delta (JFK, LAX, BOS) are all announcing new lounges, Citi continues to "Zig" and not shy away from capturing Travel spend.

Earnings Reveal Our Progress

As we enter earnings season C, JPM, WFC - Friday; and Delta - Thursday (my Amex proxy/early read) I am looking forward to learning more. JPM often sets industry standards, compelling other FIs to adapt and follow suit. I am curious to learn if Marianne Lake expands further on fees. If you haven't seen the WSJ article, 100% worth a read:?JPMorgan Warns Customers: Prepare to Pay for Checking Accounts

Given the recent Chevron deference ruling, FIs will push back harder on fees or offset them by increasing them in other areas.

Fintech's Comeback with Revolut

Speaking of earnings,?Revolut surged to a record profit of?$545 million in 2023. Revolut is seeking a $40 Billion valuation on the back of this profit.

This would put Revolut at the same level as Block (Square) and make them a Top 30 Bank if they were US-based.

If achieved, this bodes well for Chime and other Fintechs in the U.S. as Chime (valued at $25 Billion in 2021, is now looking to IPO closer to $8 Billion). Revolut may be?bringing fintech back!

As ever - Anuj