Tech-native millennials are more likely to use providers offering financial and savings applications with innovative features, according to research commissioned by business services firm Dunstan Thomas.
The nationwide study Engaging with Millennials found millennials were early adopters of savings and investment management on mobile devices with almost half (45%) saying they were currently using banking apps on their smartphone and tablets.
About 12% were using investment platforms for trading and to stay on top of fund performance and shareholdings, the research found.
The firm questioned 1,000 millennials aged between 23 and 36 online last December.
Of a range of future digital fintech innovations the concept of micro-saving via contactless payment card was the most favoured among respondents, with nearly two-thirds (64%) liking the idea.
Not far behind was the idea of a pension provider app offering a real-time valuation of a pension pot with details on where the money was being invested.
Millennials also liked the idea of getting notifications from apps or online tools when their personal savings situation had changed.
Dunstan Thomas chief executive Christopher Read said: "The reality is that for many millennials today, access to independent financial advice is a pipe dream. They are much more likely to use their banks' online platforms and tools to self-educate and encourage themselves to reach short-term and even longer-term savings goals.
"In short, those [providers] with the best customer engagement strategies for this demographic will command their loyalty."
Director of retirement strategy Adrian Boulding added: "It seems clear that ignoring this generation's fairly advanced digital requirements and failing to engage with them online is fast becoming business suicide in both the retirement and investment market as elsewhere."
The research found millennials who are working full-time save on average £191.33 per month, compared with a monthly average of £161.65 set aside by all respondents.
However, there were significant regional differences among millennial savers. Those living in London save an average £209 per month, whereas in Northern Ireland, the average amount saved monthly is just £58.
To download a copy of the report, please click here
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