Fernando Morillo, Group Head of Retail Banking at Mashreq, explains how banks can support millennials in strengthening financial literacy and building long-term financial security.
A common concern among millennials today is the fear that their finances may never feel secure. This generation, typically aged between 26 and 41, has grown up amid geopolitical instability and economic disruption. As adults, many are building careers and families while managing student debt and rising living costs in an increasingly uncertain environment. Surveys show that nearly three-quarters of millennials feel stressed about managing their finances. While these concerns are understandable, the path to reducing financial anxiety lies in embracing financial literacy.
Financial literacy and changing spending habits
Financial literacy is a critical foundation for millennials seeking to secure their future. Alongside ongoing financial pressures, this generation’s spending behavior has evolved. Having lived through multiple economic downturns, millennials tend to be more cautious with their money and place greater importance on financial stability and security.
Research indicates that many millennials prioritize experiences over material possessions. Spending on travel, dining, and entertainment is often viewed as more meaningful and enriching than owning physical goods. At the same time, digital innovation has reshaped money management. Budgeting tools, mobile banking apps, and online investment platforms have become widely used, helping millennials track spending, save more effectively, and make informed financial decisions. There is also a growing commitment within this group to saving for retirement and achieving long-term financial independence.
Despite this, challenges remain. Many millennials struggle to balance debt repayment with saving and investing for the future. While a majority believe they are financially knowledgeable, there is often a gap between confidence and consistent financial habits. Banks and financial institutions are well positioned to bridge this gap by offering intuitive digital tools, leveraging social media to build awareness, and engaging communities to encourage healthier financial behaviors.
The role of banks in advancing financial literacy
Improving financial literacy requires a comprehensive and inclusive approach. Banks can play a vital role by offering tailored financial advice and planning services that address the specific needs of millennials. Building strong connections with this generation also means meeting them where they are. Partnerships with universities, technology companies, and financial advisors can help deliver financial education in accessible and engaging formats.
At Mashreq, financial literacy is viewed as more than understanding numbers; it is about equipping individuals with the confidence to make informed financial decisions. This belief has driven initiatives such as partnerships with educational institutions and the delivery of money management workshops in schools and universities across the region.
With average daily screen time exceeding eight hours in the UAE, digital engagement presents a powerful opportunity. Gamified budgeting tools, interactive apps, and automated savings features can make financial management more engaging and rewarding. Collaborations with digital creators and influencers can also help simplify financial concepts and make banking services more relatable to younger audiences.
Banks can further encourage learning by fostering online communities within their platforms. Secure forums, chat features, or educational blogs allow users to share experiences, exchange advice, and learn from one another in a trusted environment.
Enabling financial independence
By leveraging digital innovation and fintech solutions, banks can provide ongoing guidance and support throughout millennials’ financial journeys. Personalized insights delivered through digital channels, supported by access to financial advisors, can help individuals make informed choices and plan with confidence.
Achieving meaningful progress in financial literacy requires collaboration between banks, governments, and educational institutions. By working together to deliver accessible and practical financial education, the industry can help empower millennials to take control of their finances and build a more secure future.
Through sustained investment in financial education, banks can lead a collective effort to strengthen financial confidence and lay the foundation for long-term prosperity and resilience.
