92% of millennials do not trust banks, and alternatives such as Bitcoin are gaining attention

Earlier this year, researchers (scientists and analysts) at Facebook IQ released a white paper titled “Millennials + Money: An Initial Journey of Discovery” that assessed the trust and perception of today’s young people towards the traditional banking and financial system. The study found that 92% of millennials strongly expressed that they do not trust banks.

The general population, including millennials, has gradually become aware of the manipulation, monopoly and control of user funds by banks and financial institutions.

In the past, cash quickly became a store of value as banks and financial institutions began to abolish the use of paper money and implemented strict controls on the outflow of cash.

Banks don’t understand millennials

Research shows that the majority (68%) of millennials believe banks don’t understand their needs. Outdated banking and financial systems are inefficient and not adapted for modern applications.

In addition, the Facebook IQ team also revealed that more than 45% of millennials will look for alternative solutions to banks (provided that the alternatives can increase functionality, flexibility and efficiency).

The research team stated:

"Millennials are more likely than Generation X to switch, with 45% saying they would switch banks, credit cards or financial accounts if a better alternative became available."

Cost of storing cash

In Asia, Europe and the United States, many central banks and commercial banks have implemented negative interest rate policies, forcing their consumers and customers to pay for saving money.

Facebook IQ found that the majority of millennials around the world are turning to non-bank alternatives, with an increasing number of users preferring to use FinTech services, which have proven to be more efficient, secure and transparent.

The paper mentioned:

“Millennials also feel disconnected from the financial services industry, and many financial institutions have realized that they need to make radical changes if they want to gain the trust of millennials.”

Facebook has a very handy platform when it comes to isolating data and analyzing information. Using its database and user data, the Facebook IQ team studied working-age millennials in the U.S. aged 21 to 34, as well as affluent millennials with annual incomes of more than $75,000, to compare their views on money and banks with those of the boomer generation (aged 35 to 65).

In general, millennials and the general population today prefer digital payment methods.

However, according to Facebook IQ research, 30% of millennials still do not understand the benefits of credit or debit cards, and more than 57% of millennials rely on cash as their daily payment method for both long-term and short-term purposes. What's more, 46% of millennials view using credit cards as a way to help them build credit, and say they don't necessarily use credit cards for comfort and efficiency.

Bitcoin as a solution

Bitcoin payment solutions are by far the most practical and viable alternative for millennials and students around the world, offering high liquidity, a stable global exchange rate, and most importantly, financial freedom that prevents excessive control by authorities and central banks.

Once half of millennials migrate to more innovative and practical systems (such as Bitcoin and other non-bank digital currencies), the rest will follow.

Therefore, the increased awareness among young people about their right to control their property will eventually lead millions of users to turn to Bitcoin or other possible cryptocurrencies.