Information available on Millennials can be pretty confusing. There are a lot of different research studies with some conflicting results. Although, each study keeps highlighting an interesting conundrum for banks: how can they best serve millennials. Millennials are individuals born between 1980 and 2000, are the largest adult demographic in the U.S., and at present have $1.4 trillion dollars in investable assets.
Millennials are entering their prime earning years, and their investable assets are expected to grow to $11.3T by 2030, a staggering 15% compound annual growth rate. Millennials will also overtake baby boomers in consumer spending by 2018. They are poised to become the driving force of the U.S. economy and some are ascending up the corporate ladder at a rapid pace. Over the next 30 years, millennials will inherit $30 trillion dollars from their parents. This drastically changes the relationship with millennials; Banks need to redefine their wealth management approach to focus on a new generation of investors.