77% of millennials surveyed answered they must build their own path to success, rather than depend on third parties, and 71% want to start their own business.

Miami, November 29, 2017 — Celebrating the 6th Mastercard Latin American Innovation Forum, Mastercard released a study commissioned from Harris Insights and Analytics on millennials’ consumer behavior in Latin America. We surveyed banked millennials in Brazil, Mexico, and Colombia to understand what motivates Latin American millennials and build long-term relationships with this dynamic generation.

The study revealed that 64% of Latin American millennials adopt new behaviors that constantly challenge the status quo. Instead of waiting for solutions to the problems they face as a generation, 77% of millennials agreed that they have to build their own path to success rather than depend on third parties and 71% want to start their own business.

“The importance that millennials give to technology and their belief that it is the main tool to solve the world’s problems makes digital technology the main bridge for financial institutions to reach this generation and have a positive impact on their generation”, says Ana Ferrell, SVP, Marketing and Communications for Mastercard Latin America and Caribbean.

Millennials attribute their identity to their education and life experiences. The study revealed that financial independence is this generation’s priority. This is perhaps because 67% of Latin American millennials are experiencing some kind of financial instability.

Collectively, they aspire to build a stronger community. The study highlights that 44% of surveyed millennials feel their generation is more community-driven than previous ones. 71% of respondent say it is important to have a meaningful job and 81% say a job is more than just a job. In Brazil, 1 in 3 say dedicating their time to a social issue or cause is a top priority in their life.

Technology plays an extremely important role in the life of Latin American millennials, as the only thing that motivates them more than digital technology is travelling. Evidently, technology is a part of this generation’s identity. 85% of millennial women in Mexico say that their educational level wouldn’t be the same without access to digital technology[1]. Also, 52% feel that digital technology has the power to solve many of society’s problems.

This generation is always on the look-out for new technological innovations, as one in every three Latin American millennials considers themselves early adopters of products. As the driving force of their generation, millennials around the world consume an average of 18 hours of multimedia content, mostly created by their peers[2].

Looking at Latin American millennial purchasing traits based on our research:

  • 65% of interviewees research a product online before making a purchase
  • 62% are always looking for the best prices or discounts
  • 51% are not satisfied with the payment options available to them and 54% wouldn’t recommend their credit card to a friend
  • 45% say they would like to use digital payments more but many stores don’t accept them
  • 35% carry cash because there are shops that do not accept any other type of payment
  • 2 of 5 millennials only purchase products that are aligned to their values
  • 54% of millennials prefer to buy products from socially responsible companies

Financial institutions have several ways of making a difference in Latin American millennial’s lives. The study reveals that generation Y wants an easier way to:

  • Reduce debts (65%)
  • Create better spending habits (64%)
  • Efficiently track expenses (62%)
  • Have a budget plan (61%)
  • Invest their money (58%)
  • Fund innovative business ideas (57%)

Millennials are credited with the ongoing boom in innovation around the world. As they are constantly searching for economic independence, this gives financial institutions a great opportunity to present themselves as allies in achieving that goal.

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[1] (Mexico News Network, 2016 — http://www.mexiconewsnetwork.com/lifestyle/mexican-millennial-empowered-women-latam/).

[2] (Ipsos, 2014 — https://ivetriedthat.com/wp-content/uploads/2015/02/Social_Influence_Research_Paper.pdf)