When was the last time you were inside a bank? You know, with human tellers, cardboard marketing promotions, and lollipops? The answer probably depends on a few factors, including your age and the type of transaction you were trying to make. Recent research suggests that "Generation Y" (the folks born in the mid 1970s through early 2000s, also known as "Millennials") will shape the future of online banking, effectively making brick and mortar banks a thing of the past.
Two interesting surveys, one conducted by Cisco and the other by the American Bankers Association, concluded that Gen Y-ers are demanding "on-the-go, personalized communications" and will want to use a variety of platforms and channels to conduct their banking, including mobile devices (97% of Gen Y-ers own one), and social media. The ABA survey found online banking to be the preferred banking method for 25% of bank customers under the age of 55.
Interestingly, nearly 40% of Gen Y-ers are interested in interacting with an adviser via video and prefer web-based personal financial management tools (primarily those offered by their banks) to manage expenses, reduce debt, and maximize long-term savings. Because of this, it’s never been more important for banks to stay ahead of the curve and invest in technology that will support online banking and sustain the influx of the largest American generation since the Baby Boomers as they enter the marketplace.
So, what can banks do?
Two interesting surveys, one conducted by Cisco and the other by the American Bankers Association, concluded that Gen Y-ers are demanding "on-the-go, personalized communications" and will want to use a variety of platforms and channels to conduct their banking, including mobile devices (97% of Gen Y-ers own one), and social media. The ABA survey found online banking to be the preferred banking method for 25% of bank customers under the age of 55.
Interestingly, nearly 40% of Gen Y-ers are interested in interacting with an adviser via video and prefer web-based personal financial management tools (primarily those offered by their banks) to manage expenses, reduce debt, and maximize long-term savings. Because of this, it’s never been more important for banks to stay ahead of the curve and invest in technology that will support online banking and sustain the influx of the largest American generation since the Baby Boomers as they enter the marketplace.
So, what can banks do?
First, they must make online and mobile customer experience a priority. Millennials require a flawless digital experience, one with transactions that post in real-time and applications that include the latest functionality. They must remove any sources of struggle that prevent users from completing transactions. Second, they must truly understand consumer behavior. Old-school analytics and customer feedback forms alone cannot do the job. Banks must learn why their young, tech-savvy users are behaving a certain way on their sites, and that means adopting technology that can tell them just that. Lastly, they must have a social media presence. Banks must monitor (and respond to, if needed) any comments, tweets or posts that mention their brand. Members of Generation Y conduct their lives largely online, much more so than their parents. One negative comment can go viral, and a business of any size can suffer because of it.
As Gen Y-ers begin to take over the workforce, make more money and continue to define the Internet, the banks that adapt the fastest will be the ones to get their business, but more importantly, their loyalty
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