Millennials are revolutionaries: wherever they tread, the world changes with them — and this doesn’t exclude things like banking. They’re the largest generation in the current workforce and they have a bigger influence than many of us would like to admit. So just how is it that millennials are changing banking? Well, there are a few ways they’re helping banks to step into the future and start accommodating them. Not only that, but millennials are really keeping the banks on their toes with regards to customer loyalty.
- Going Mobile
Most millennials use online banking instead of going to their local branch. They can check their recent transactions, how much is in their accounts, and transfer money from any location. It makes life easier and adds a level of convenience that we all need sometimes. There are many online banking apps that will even let you apply for loans, overdrafts, and credit cards as well – putting everything in one easy-to-access place.
Millennial loyalty is harder to win. If a bank is not offering the right incentives, they aren’t going to stay for very long. They like perks, rewards, and a bank that offers that to both new and existing customers is sure to succeed with the millennial market. They switch banks more than any generation, even the up and coming Gen Z. They want things like cashback on purchases, lower interest rates on loans and higher rates on savings, and, most importantly, no overdraft fees to worry about.
The vast majority of millennials are massively into savings and tend to put things like marriage and buying a house to one side because they’re too expensive. Therefore, a good savings account is an absolute must for this generation. Having a selection of different accounts to choose from is the most desirable option, as well as good interest earnings so that they feel as though they are getting something out of it.
These are what’s also known as financial tech, and it’s banking but without the physical branches. They offer a lot more than traditional banks, such as no fees, lower interest rates on loans, faster loan/credit approvals and payouts, as well as broader ATM access. Branching out into more technological avenues is the way forward and will benefit every bank.
Simply put, millennials want the bank to be their friend. They want to feel important and known, which is why personalizing their experience is so important. Take it a step further and customize offers that are suited to their situation — let them know that they’re being thought about. It’s this little added touch that can make a world of difference in a millennial’s banking choices.
When you think about it, each of the things that millennials want and expect from their bank are features that make the experience so much better. Incentives keep us loyal and make us feel good, a personal touch gives us a sense of importance, and convenience and the ability to save while being rewarded is excellent motivation. All of this is positive, which is why more banks should join in the millennial revolution?