Over the last couple of weeks we have been focusing on millennials and their impact on today’s banking industry. We have gone over the financial habits of millennials as well as the relationship between this generation and mobile banking. It has been brought up on numerous occasions that banks and credit unions need to understand and adapt to the needs of millennials in order to bring in their business, and this is something we will explore in more depth today.
First, let’s briefly summarize the main talking points from our last two blogs:
- Millennials are those born between the year 1980 and the early 2000s
- 91% of millennials use social media to obtain advice and information about their finances
- 74% of millennials bank digitally
- 54% of millennials prefer to work with locally owned and operated financial institutions
- 64% of millennials are attracted to financial institutions that they can develop a relationship with
- 74% of millennials say mobile banking is important to them in comparison
- Millennials want a mobile app that will provide them with the ability to send and receive money as well as one that will store all their sensitive information in one place
So, with all that in mind, how can banks and credit unions attract millennials? For starters, they need to take a step back and realize that this generation is one that cares less about tradition and more about going after their passions and the things that matter to them. The inclination of millennials to run the other direction when tradition is in the mix directly impacts the banking industry. In order for banks and credit unions to attract millennials, they must take the time to learn about them, their needs, and what they are looking for in a financial institution.
While it is true that millennials are heavily reliant on technology and digital devices, 64% of this generation say developing a relationship with a bank or credit union is important to them. Along these same lines, 70% of millennials want to learn more about banking and financial matters.
These stats coupled with the fact that millennials are more likely to give their business to local institutions opens the door for banks and credit unions to get creative when marketing to millennials. However, the fact that millennials desire both innovative mobile banking options and personalized service can pose quite the challenge for banks and credit unions. Seemingly, millennials want the best of both worlds. So, with this in mind, what can financial institutions can attract millennials?
Make an effort to meet their demands
If a bank or a credit union can strike a balance between offering services that consumers need and doing it in a way that is in-line with the habits of millennials, they will be in good shape. Lenders, for one, should focus on continuing to offer invaluable service and knowledge but at the same time step outside the box and market to millennials via social media and other digital platforms.
Focus on mobile banking
We cannot reiterate the importance of mobile banking when it comes to attracting millennials. Given the fact that the majority of millennials say that mobile banking is a priority when choosing a financial institution, it is absolutely imperative that banks and credit unions focus on developing a mobile app that is user-friendly, innovative, and provides the consumer with all the features they are looking for. Mobile apps that cater to the consumer’s financial goals and allow them to access their finances, manage their portfolio, apply for a loan, transfer funds between friends, pay for goods, and stay secure are the ones that will have the most success.
It is also important to remember that millennials want to be knowledgeable about their finances and the banking industry. Banks and credit unions should take an interactive and informative approach to educate this generation about their finances. Social media is a wonderful platform for this, and something we know millennials are into. To keep up with the changing atmosphere and attract tech-savvy millennials, banks and credit unions need to adapt to their communication preferences, learn about their habits, provide them with personalized service, and introduce a mobile app that has all the features they want wrapped into one.
To learn more about how financial institutions and bank lenders can attract millennials, please check out our ebook, What Lenders Can Do to Attract Millennials. If you have anything to add to this subject, please feel free to use the comment section below.