Gen-X Professionals, Financial Services, and the Web: Report Published by Celent

A Celent Communications survey of affluent, wired 25-34
year-olds shows massive adoption of online financial services, use of the Web to find and
evaluate providers, and strong interest in financial planning services in this important segment.

New York, NY, USA April 29, 2002 — In a new report, Gen-X
Professionals, Financial Services, and the Web, Celent examines the current behaviors and
motivations of an important segment for financial services providers – the affluent,
educated, upwardly mobile segment of Generation X (25-34), or Gen-X professionals. Celent
estimates that the 2.1 million Gen-X professional households represent US$21 billion in
annual potential revenue for the financial services firms who are savvy enough to attract and retain them.

A survey of Gen-X professional households conducted by
Celent yielded several key findings, including a strong interest financial planning
services. 42% of respondents reported having a financial planning provider, while an
additional 15% reported planning to find one within the next 12 months. Two-thirds of
those are planning to look for their provider online.

“With the collapse of the 1990s bull market, the
future is suddenly in question, even for these young affluents,” says Matthew
Josefowicz, a senior analyst at Celent and author of the report. “This anxiety about
the future and interest in financial planning represents a tremendous opportunity for
financial services providers.”

By targeting these customers now, financial services
providers have a chance to insert themselves into the Gen-X professionals’ long-term
financial plans, giving providers a leg up on their competitors who will begin to target
the same households as they approach middle age. To maximize the value of the Gen-X
professionals, institutions must focus on compelling Web-based messaging to attract them
and on creating competent Web services to keep them. The overwhelming majority of those
who reported planning to look for new providers within the next 12 months said that they
planned to choose their new providers via the Web. 47% of respondents to Celent’s
survey cited the Web as their number one preferred way to communicate with their financial
services providers, more than any other channel.

The report includes survey data from Celent’s recent online survey of Gen-X professional
households, and provides detailed information on financial product usage, plans, and online behaviors across
the banking, investments, and insurance segments. A Table of Contents is available

Celent’s service offering falls into two categories, consulting and research, each of which
is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance
companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared
towards facilitating better informed, faster decision making. Celent’s Web site is at