Millennials, now the largest generation in the United States, are taking longer to establish credit than earlier generations of young people. Bankcards make up only 27% of recently opened accounts for millennials, compared with 46% for Generation X counterparts at the same age. While the delay means lower debt exposure for millennials, it could also mean they are less engaged and less able to obtain higher-priced consumer items given their limited credit history.
Millennials are poised to shape the economic landscape. With the right strategies and investment, financial institutions can become trusted partners and establish profitable, rewarding relationships with this up-and-coming population.