Yes, it’s another study into the spending habits of Aussie Millennials (those aged 18-35) and this one has discovered they’ve all but abandoned hope of home ownership and instead a spending their cash on travel and luxury brands.
The report by professional finance firm KPMG and titled Banking on the Future Report 2017 found that the Ys make up 22 per cent of Australia’s population and will be about half the work force in five years. You can download a copy of the report here.
According to the study FOMO is a big worry for the Ys, FOMO standing for fear of missing out. “Coupled with soaring property prices … the FOMO psychological effect is driving this cohort to prioritise travel, luxury items and experiences over property ownership,” the report revealed.
The Ys aren’t loyal to their financial institutions with 28 per cent of them having an account with more than three different providers.
Unsurprisingly, they want to shop and pay bills on their smartphone, with Uber’s model singled out for high praise.
And the Ys don’t want to work for you! Half of respondents said they had entrepreneurial ambitions to start their own businesses.
Commenting on the study, KPMG’s Daniel Knoll said the economic importance of the Ys should not be underestimated. “They are the mass affluents of the future and, interestingly, their individual customer experience with their bank is currently their biggest pain point,” Knoll said.
“Delivering an enhanced customer experience is the key to attracting and retaining this group. Convenience, whether managing money, making payments or accessing funds, has become the cornerstone of true engagement.”
Being a finance firm, KPMG focused heavily on what the Ys want from their banks and financial institutions.
“Delivering an enhanced customer experience is the key to attracting and retaining this group,” Knoll said.
“Convenience, whether managing money, making payments or accessing funds, has become the cornerstone of true engagement.”