Last week we discussed who millennials are, what some of their financial habits are, and why financial institutions need to adjust in order to attract this generation. We also briefly looked at the role of technology in the banking industry, which leads us to today’s topic: mobile banking. Perhaps the best example of how millennials are changing the banking industry is the introduction of mobile banking apps. Here are a few facts about millennials and mobile banking:
- 74% of millennials say mobile banking is important to them in comparison to 44% of baby boomers
- 85% of millennials would prefer to do all their banking and shopping via their mobile device
- 52% of millennials use mobile payments
- Millennials spend 35 hours each week, on average, on their smartphones
These statistics tell us one thing - it is extremely important for millennials to have real-time access to their financial information, whenever they want it.
The purpose of today’s blog is to take a closer look at millennials’ relationship with banks and credit unions and how their financial habits are affecting banking practices. As mentioned, mobile banking is one of the main ways we have seen the impact of millennials, so we will also spend some time today going over how millennials have changed the mobile banking game.
Why We Should Care About Millennials’ Financial Habits
In order to better understand how to attract millennials and why a smart mobile banking program is so important, it’s important to gain a little insight into who millennials are and what their financial habits look like:
- 91% of millennials turn to social media for financial advice
- At the end of 2015, 74% of millennials banked digitally
- 70% of millennials wish they knew more about the banking industry and finances
- 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
So while there is a lot of talk about millennials and their reliance upon technology, smartphones, and other devices, the fact of the matter is that they also care about developing a personal relationship with the bank or credit union they chose to give their business to. This is why it is important for financial institutions to take a widespread approach to attracting millennials, which includes introducing a mobile app that will attract this generation’s non-bankers while also focusing on fulfilling their need for personalized service and attention.
Why Building a Smart Mobile Banking App Matters
To make yourself stand out to millennials, it is important that you find out what people are looking for in a mobile app. As the statistics mentioned above indicate, more people than ever before are relying on the digital platform to access their financial information. Lenders should consider integrating features that are not only useful, but will make them stand out from the rest. Here are a few example of what millennials are looking for in a mobile banking app:
The ability to send and receive money
Apps such as Venmo and Square Cash have taken the market by storm, giving people the ability to send and receive money, split dinner checks, pay rent, and so much more. In order to attract millennials and steer them away from these outside apps, banks and credit unions should focus on developing a mobile app that has these same capabilities and more.
Store information in one place
There are numerous outside apps that provide people with the ability to store all their financial information in one place, including credit and debit card numbers. If a consumer’s own mobile banking app had this ability, as well as the ability to pay for goods with the app, they’d be far more inclined to use it in place of another party’s app.
Because our society revolves so much around technology and digital banking use is growing, it is important that banks and credit unions adapt accordingly. By taking the time to understand who millennials are, what they are looking for in a financial institution, and what they may find useful in a mobile banking app, you will have a far better chance of attracting this new generation of bankers.
To learn more about the relationship with millennials and mobile banking, 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.