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Millennials more likely to ditch traditional banking, according to study

Posted at 4:44 AM, Mar 22, 2019
and last updated 2019-03-22 05:40:43-04

PALM BEACH COUNTY, Fla. — Millennials and their quest to be non-traditional continues. This time, in the banking space.

According to a study from Marqeta, more than half would switch banks if Facebook, Google, or Amazon got into the finance game.

"I might consider something if Apple is doing it. I'm one of those Apple junkies. Not Facebook, not a fan of Facebook," said millennial Daly Kay Reback.

Nearly 50 percent of millennials said they'd consider moving to an independent digital-only bank.

"I think I do a lot more online and mobile banking through my phone through apps," said Annece Holtz, who falls into the millennial age bracket.

Eric Cornell, a partner at Oceanview Private Wealth, said there's a big reason why they tend to focus on non-national banks. He said companies that have been around for generations are almost a turnoff for the millennial generation.

"A lot of the millennials have some of the same characteristics of those from the Great Depression-era," said Cornell. "When I say that, I mean they like to have a lot of cash on hand. I think the 2008-2009 issue with the Great Recession had a lot to do with that."

The survey also said millennials are more likely than baby boomers to change their banks.

"They feel like the bank is robbing them," said Georgette Laguerre, the owner of Starting from Scratch.

Laguerre works with younger generations on making responsible finance decisions by going back to the basics.

"It's best to save your money when you are young, so you can have a long-term benefit as opposed to being short term. I feel like millennials look at a short term perspective," Laguerre said.