The Millennial Factor for Banking

October 27, 2016
Vijai Shankar, Sr. Director Industry Marketing

Over the last several years, the buzz has been incessant surrounding millennials, the age group born between 1980 and 2000. There's a pretty good reason why: They outnumber baby boomers and, according to PwC, they are expected to be over 50% of the global workforce by 2020. As millennials increasingly enter the workforce, they will interact with banks more frequently for new accounts, bill payments, credit cards, mortgages, home equity, investments, etc. Though the demand for bank services will rise, acquiring and retaining millennial customers may prove to be a challenge for banks with sub-par customer experiences. More than 3 out of 4 millennials switch financial accounts if they find a better alternative1 and 80% of millennials also cite personal experience, reviews, or recommendations as the top reason for switching banks.2

Millennials respond positively to innovation with nearly 65% reporting that their day-to-day behavior is driven by a desire to find a new, better way of doing things. In addition, 81% of millennials interact with banks online and 67% of millennials said that the traditional and digital banking experience they receive at their current bank is only somewhat or not at all seamless. Research has also shown that, while millennials are definitely more technology-savvy, they aren’t nearly as bank-savvy, and often look to a professional for advice with their banking activities such as selecting the right products, tools, and services to make the most out of their money. So what can banks do to recapture these opportunities and continue to serve their now largest growing segment?

Learn more about how banks can effectively engage millennials via a [24]7.ai sponsored webinar with American Banker on Nov 3rd. The webinar will highlight key trends on how millennials impact banking and what banks can do to engage millennials to drive more revenues, deepen relationships, and lower costs.

1. http://www.slideshare.net/Experian_US/experian-millennial-credit-finance-survey-report-part-i-of-ii

2. http://www.prnewswire.com/news-releases/experience-factors-have-biggest-impact-on-millennials-banking-choices-new-study-finds-300172866.html

3. http://www.prnewswire.com/news-releases/experience-factors-have-biggest-impact-on-millennials-banking-choices-new-study-finds-300172866.html

4. http://www.prnewswire.com/news-releases/experience-factors-have-biggest-impact-on-millennials-banking-choices-new-study-finds-300172866.html

5. http://www.accenture.com/us-en/Pages/insight-consumer-banking-survey.aspx

Vijai Shankar, Sr. Director Industry Marketing
Vijai Shankar, Sr. Director Industry Marketing

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