Youth don’t trust banks

Microsoft survey show millienials have distrust for banks after financial meltdown

Of the estimated 80 million people that make up the “millennial generation,” only half report they are currently planning to invest in the stock market, savings accounts or 401(k)s, according to a survey released today by Microsoft.

The Microsoft “Millennials in Financial Services” survey, conducted by KRC Research of Washington, D.C., found that millennials born between 1981 and 2000 have less trust in banking and investment firms since the bailouts of AIG and global banks a year ago.

Millennials surveyed also believe that the U.S. financial industry is out of touch with the way they would like to communicate with their financial institutions. Based on the findings, millennials would prefer to communicate with their financial institutions through new channels including live online chats with banking representatives, personalized Web portals and financial applications for smartphones.

“The financial crisis has created a deep sense of mistrust in millennials, which is keeping the next generation of wealth on the sidelines,” said Colleen Healy, general manager of U.S. Financial Services at Microsoft. “However, this survey points to technology as a solution for financial services firms seeking to rebuild trust and build lasting relationships with this group.”