Comparing the Perception of and Expectations for Mobile Financial Services among Millennials and Industry Experts

Abstract: The rising housing prices and stagnant salaries combined make the start of the independent life difficult for the millennial generation. The higher cost of living diminishes the means the young adults have for saving and therefore it is challenging to find a way out of the struggle. Millennials, who are used to being surrounded by digital services, expect effortless interaction when dealing with everyday errands, including financial matters. However, the financial services industry is still lagging behind, even though in the increasingly saturated application market, it seems like there is an app for everything. Extensive research has been done on the millennials’ money management habits and a few studies have examined the technological advancements’ effect on the financial services industry. The aim of this study is to investigate the Swedish millennials’ engagement in wealth management and their expectations for mobile financial services. Additionally, it aims to identify how well the financial services industry understands the millennials’ needs and expectations for mobile financial services. The study was conducted through a survey with 101 Swedish millennials and interviews with three millennials and four representatives from the financial services industry. Findings indicated that the millennials are engaged in wealth management activities, but do not have a clear strategy for it. The results show that the financial services industry experts understand millennials relatively well, but there is still a gap between the millennials’ and industry experts’ perceptions of mobile financial services.