REINFORCING THE MARKET POSITION OF INVESTMENT PRODUCTS IN THE YOUNG PEOPLE SEGMENT: A CASE STUDY OF CIMB NIAGA

• Main Author: Arthur M Soemarsono, Theodore
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57669
• Institution: Institut Teknologi Bandung

In the modern days and age, there are more and more options of investment for everyone. Moreover, with the help of technology, it is getting easier for people to invest their money. What used to be for people to have to go to the bank can now be done on the tip of their fingers. Investment is important to some people for its financial security in the future because people believe that the money they invest now will bear interest and can give great returns in the long term. There are several options people can choose to invest their money in. For starters, there are time deposits in the bank, bonds (government or corporate), mutual funds, and derivatives products. Time deposit is probably the most common and the most conventional financial instrument. Some banks also offer mutual funds for their customers. This is a product that can be customized according to the risk appetite of each consumer. For consumers who have an aggressive risk profile, they can invest their money in a mutual fund consisting of stocks. While those who prefer safer and low risk investments, they can buy money market mutual funds. Bonds are also an alternative for people who want to invest. Bonds can be traded or invested for the long term. In a way, bonds are close to stocks, the difference is that bonds promise fixed rate coupons for its holders. The purpose of this thesis paper is to see if the millennials generations are aware of these options. This paper is written to see what the preferences are and needs of the millennials in investment. Do they like to invest using mobile applications or going to the bank? What are their challenges in investing? Do they like to invest small but regularly or do they prefer to invest once in a lump sum? These are some of the questions we would like to find the answer to in this thesis. Once we find the answer of what millennials want and need for their investment, this can be formulated into a strategy for banks. Banks can use this to create and offer more investment products that are targeted more specifically to younger and more exciting segments, the millennials. The author has done secondary research and conducted in-depth interviews with young millennials between the ages of 24-26 years old to learn more about the investment behavior of the young millennials. The respondents chosen must have a bachelor’s degree and currently are working or have just starting their career. These are the criteria because these customer personas are believed to be the new segment that will be targeted by CIMB Niaga.