Millennials have a reputation for being low on loyalty when it comes to their employers — and it seems they are the same when it comes to their banks. Under 25s are opening multiple bank accounts and leaving old ones open, according to new research, a habit not found in older generations. Big question is what the implication is for the challenger banks that have many millenial clients, if these would do mortgages, investments and savings elsewhere , the value of a "free" current account is not a lot...
The Current Account Switch Service said on Thursday that a survey of 2,300 people found that 37% of millennials and Gen Zs are “choosing to multi-bank.” That compares with just 17% of over 35s. The findings support what many observers of challenger banks have long suspected: that young people are opening accounts with buzzy startups like Monzo and Starling but keep their salary going into a main account held with a legacy bank. Only around 30% of Monzo’s customers deposit at least £1,000 in their accounts each month, although that figure was up from 13% last year.
