By Jason Dorsey, Special for USDR
For many people, having a checking account is such a way of life that it’s rarely given a second thought. In reality though, tens of millions of people operate without a checking account and this trend is becoming more commonplace among the younger generation. According to a new national study by The Center for Generational Kinetics and Global Cash Card, out of the 53 million Millennials that are considered employed, about 5 million of them do not have a checking account. The research found that the main reason for this is a distrust in banks, cited at 48%.
The landscape of personal finance management, including pay, is shifting dramatically, and that change is being led by Millennials. In order to attract the best talent and meet the needs of this generation entering the workforce in record numbers, employers must embrace alternative payroll options. Our study offers insights to help understand Millennials’ perspective and keep up with the change.
Payards have emerged as a viable and beneficial solution to avoid traditional banking methods. One third of Millennials – over 29 million workers – said that they found the concept of a paycard valuable and 64% believe paycards should be offered by employers. While having additional payroll choices was part of the appeal, paycards were also identified as having a positive effect on financial habits. 75% of current paycard users said that paycards help them save for retirement, and roughly one-third of Millennial workers – more than 18 million people – expect this would be the case if they received their wages on a paycard as well. With Millennials and current paycard users shown to be the most likely to receive payroll education and understand their options, these findings speak volumes.
Michael Purcell, Executive Vice President and Chief Marketing Officer of Global Cash Card, commented, “This study validated for us that today’s employees don’t just recognize the benefits of paycards; they need them now more than ever. In an increasingly tech-driven and connected world, we help employers meet the changing demands of young workers through our affordable and convenient paycard services.”
Visit info.globalcashcard.com/paycardrevolution to download a copy of the white paper that offers a complete set of the findings, along with an infographic. Also visit GlobalCashCard.com for more information and find @Paycards on Facebook and Twitter. #LetsGoGCC
- Jason Dorsey Millennials expert and Co-Founder of The Center for Generational Kinetics
Jason Dorsey is the Chief Strategy Officer and Millennials Researcher at The Center for Generational Kinetics. He leads The Center’s team of PhD researchers as they uncover new generational trends and truths while solving the complex generational challenges his clients face—especially with Millennials (Gen Y) and the next generation, Gen Z. Jason has been featured as a generational expert on 60 Minutes, 20/20, The Today Show, The Early Show and dozens more. Adweek calls him a “research guru” and The New York Times showcased him in its cover story on marketing to Millennials. Jason’s research clients range from global banks and public software companies to automakers and consumer brands.