Each generation has its own consumption pattern and behavior, so there is no surprise that Gen Y, the millennials are different from the earlier generations. They were born into a world of instant information, internet, social networking and smartphones. Being raised in this environment, they prefer online, multichannel and swift services.
In a few years time they will be the drivers of revenue in retail banking, dominating the financial space. Banks will need to adapt to their needs to meet challenges of developing products for them. Millennials are likely to switch banks if they don’t get what they expect, so it is crucial to understand their needs to be able to offer banking products and services with value.
Here are some pointers of what millennials actually expect and want from banks:
- An account where deposits of any kind of income can be safely made
- Easy, straightforward mechanism to do different types of payment
- Money and bank services made accessible for any device
- Real-time banking anytime, anywhere to see the latest balances, check and make payments
- Receiving immediate balance updates
- Advice, help and maybe guidance with personal finance, creating budgets, forecasting and planning
- Personalized services tailored to their preferences, income and expenses, also getting deals and offers of relevant products and services
- Flexible debit and credit card limits, loans at competitive rates
- Accounts and debit/credit cards with low transaction fee and no annual fees
- Freud protection: safe accounts, securely stored details and personal data. Having reliable security features without the forever taking process of login and authentication.
Fulfilling and successfully meeting their needs is critical for retail banks if they want not only to attract but to retain Gen Y customers.