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Why Banks Should Listen To Millennials

           Millennials always seem to get such a bad rap in today’s society. They are referred to as lazy, ego-centric, entitled, and unreliable deadbeats. People automatically assume that they will never move out of their parents’ home because they have no sense of independence.

According to public opinion, millennials only stay at one job for a maximum of 6 months because they think they should be getting paid more right from the start. Apparently, millennials expect everything to be handed to them. I could go on and on about all of the negative commentary I have heard about millennials and yet, it’s not true.

The Truth About Millennials

What is true however, is that millennials, those between the ages of 24 and 38 today, are the biggest generation in the UK currently and will surpass the Baby Boomer generation within the next 12 months. Millennials often get confused with generation Z who are between the ages of 3 and 23. Being referred to a millennial in today’s society seems like an insult because you are considered “one of them” and it doesn’t accurately represent the true characteristics of an individual.

These constant assumptions should shift to a more positive light, especially in the eyes of the banking industry. Millennials are a demographic that are highly targeted by companies. To earn their consumer loyalty, company’s must value their preferences and take the opportunities to listen to their wants and needs.

For example, 92% of millennials stated that they would choose a bank with digital services over a bank without. Millennials value ease of use, convenience, and digital communication. As a bank, in order to retain the millennial generation as a consumer, which would be silly not to, digital services better be made available or else the future of the bank is not looking so good. Digital-only banks are in great shape in this aspect!

Proof That Millennials Care About Banking

Even though millennials get the reputation that they do not care about their money, 93% of millennials said that they would switch their current bank to one that offers no-fee banking to save any money possible. Not only do millennials want to save money, but they want to actually manage their money. As a matter of fact, 67% of this demographic announced that they want a digital tool to budget their money that is linked to their banks. Millennials stated that they have used other budgeting mobile apps, but fear the security of them because they are not offered directly through their bank.

As a student studying abroad myself I am very thankful that my bank offers refunds on international ATM withdraws, however this is very rare. It is so rare that 83 % of millennials admitted that they would leave their current bank to join another bank or non-traditional bank that offers ATM refunds or free withdrawals.

Would Millennials Rather Go To The Dentist Than To The Bank?

The Millennial Disruption Index surveyed millennials asking them this exact question, and 71% of them replied that they would rather visit their dentist for a cleaning. Out of this 71%, 1 in 5 fear the dentist. So why would someone rather go to a place they fear, than just going to the bank? Well, millennials do not like wat banks have to tell them. Over 16% of this generation are very frustrated with inability to customize their banking options, because they do not want to pay for features they will not use. They find traditional banks inconvenient, unsustainable, and unable to align their wealth with their desires.

The Digital Advancements of Today

More than half of millennials are currently using a nontraditional bank for certain aspects of banking such as free user to user transfers, like Venmo or PayPal. However, they are not satisfied with these applications fully, because their bank account is now linked to so many different applications. Millennials also use these other applications because over 16% of this generation are very frustrated with inability to customize their banking options, so they do not want to pay for features they will not use.

Millennials are the most technological advanced generation thus far and this supports why 45% of this generation admit to using strictly their mobile device for banking. As of last year, millennials check their phones 150 times a day giving them ample opportunities to view their bank statement electronically, conveniently, and securely, with a banking mobile app.

A Bank Designed For Millennials

What is going to be vital in today’s society is a bank strictly designed for the millennial generation. A bank, where digital services are not only available, but the main source of communication.

A bank where there are minimal to no fees, and tools that users can utilize to budget and save money. A bank where money can easily be transferred from user to user instantaneously and easily. A bank where millennials no longer have to fear paying for features that they won’t use, one they can customize and tailor to their needs and wants. A bank that will make millennials never prefer to go to the dentist again.

With all this being said, check out sync. for a look at an alternative banking option, perfect for millennials.

References:

https://communityrising.kasasa.com/gen-x-gen-y-gen-z/

https://www.careerplanner.com/Career-Articles/Generations.cfm

https://www.statista.com/statistics/630938/uk-millennial-population-by-age/

https://www.inc.com/john-brandon/science-says-this-is-the-reason-millennials-check-their-phones-150-times-per-day.html

https://www.workingmediagroup.com/why-millennials-are-leaving-your-bank-and-how-to-stop-them/

https://www.aba.com/Tools/Documents/Millennials-Banking-Infographic.pdf

https://www.forbes.com/sites/zachconway/2017/04/19/why-more-millennials-would-rather-visit-the-dentist-than-listen-to-banks/#3ab642d872b3

By Tess Korinko