Gen-X Professionals, Financial Services, and the Web

April 29, 2002

Abstract

New York, NY, USA April 29, 2002

A Celent Communications survey of affluent, wired 25-34 year-olds shows massive adoption of online financial services, use of the Web to find and evaluate providers, and strong interest in financial planning services in this important segment.

In a new report, , Celent examines the current behaviors and motivations of an important segment for financial services providers — the affluent, educated, upwardly mobile segment of Generation X (25-34), or Gen-X professionals. Celent estimates that the 2.1 million Gen-X professional households represent US$21 billion in annual potential revenue for the financial services firms who are savvy enough to attract and retain them.

A survey of Gen-X professional households conducted by Celent yielded several key findings, including a strong interest financial planning services. 42% of respondents reported having a financial planning provider, while an additional 15% reported planning to find one within the next 12 months. Two-thirds of those are planning to look for their provider online.

"With the collapse of the 1990s bull market, the future is suddenly in question, even for these young affluents

," says Matthew Josefowicz, a senior analyst at Celent and author of the report. "This anxiety about the future and interest in financial planning represents a tremendous opportunity for financial services providers."

By targeting these customers now, financial services providers have a chance to insert themselves into the Gen-X professionals’ long-term financial plans, giving providers a leg up on their competitors who will begin to target the same households as they approach middle age. To maximize the value of the Gen-X professionals, institutions must focus on compelling Web-based messaging to attract them and on creating competent Web services to keep them.

The overwhelming majority of those who reported planning to look for new providers within the next 12 months said that they planned to choose their new providers via the Web. 47% of respondents to Celent’s survey cited the Web as their number one preferred way to communicate with their financial services providers, more than any other channel.

The report includes survey data from Celent’s recent online survey of Gen-X professional households, and provides detailed information on financial product usage, plans, and online behaviors across the banking, investments, and insurance segments.

A Table of Contents is available online.

of Celent Communication's Retail Banking, Retail Securities & Investments, and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

New York, NY, USA April 29, 2002

Gen-X Professionals, Financial  Services, and the Web

Return to report Abstract

 

EXECUTIVE SUMMARY 3
MARKET OPPORTUNITY 4
THE SURVEY AND RESPONDENTS 8
ONLINE FINANCIAL SERVICES USAGE 12
THE WEB AND DECISION-MAKING 14
COMMUNICATING WITH PROVIDERS 16
PRODUCT AND SERVICE USAGE 17
CHOOSING PROVIDERS 21
CONCLUSIONS 24

 

        

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