Generation Y has become the most money-conscious and financially savvy generation following recent global downturn, according to new research.
Gen Y was more likely to pay off debt and prone to change financial institutions for the best deal, research firm Retail Finance Intelligence (RFI) has found.
Research director Alan Shields said Gen Y, which was often touted as the "instant gratification" generation, was demanding yet financially savvy.
A person considered to be Gen Y was born in the early 1980s to the late 1990s.
"Almost three quarters of respondents said they had a savings goal and were future-focused and not interested in immediate luxuries," Mr Shields said.
In the research, Gen Y emerged as more financially responsible than average, displaying a willingness to pay debt off as quickly as possible.
Only 4% of all respondents suggested they would pay off debt due to their "sense of obligation", and almost three times as many Gen Y respondents held the same attitude.
Mr Shield said service, innovation and pricing were also considered when it came to choosing a financial product or institution.
Gen Y was more likely to have switched cards and about 68% of Gen Y respondents valued feature-packed products to a greater extent compared to the average respondent at 62%.
"They may be lured by competitive rates and features but we've seen from Gen Y's switching habits that this alone is not enough to secure loyalty," he said.
"Customer service is the factor that will differentiate providers and, given this Generations belief in sharing experiences and information."This tech-savvy generation, which was first to grow up with the internet, said they would be willing to pay more fees for online features .
The group is also more pessimistic than the average in their outlook on the economy and particularly concerned about the effect of interest rates and economic environment on their financial situation.
About 70% of Gen Y mortgage holders would consider switching their loan for a difference in rate of up to 1% compared to the average of just 43%.
Gen Y was more likely to secure a fixed rate in the next twelve months, with 42% stating it was at least somewhat likely compared to the average of 28%.
The study found that another major differences between Gen Y and their Generation X and Baby Boomer peers their willingness to act on word-of-mouth advice.
"Recommendations from friends and family came through very strongly as the largest influence for Gen Y selecting financial institutions," Mr Shields said.
"In this time of social networking and online research, people are much more likely to call on their networks for advice and reviews."Almost one third of Gen Y said they would take out a transaction account based on a recommendation compared to the average of 16%.
The study interviewed 10,000 respondents.
