Part 1 of 2: Digital Banking Trends Across the Generations, Baby Boomers and Gen X
As technology within the banking industry continues to advance, so do the changing demands of account holders. Applications and features rarely appeal to everyone, but there are commonalities and prevailing trends across the generations. Digital banking adoption remains as a viable alternative to banking in-branch, especially given its ability to deliver a similar level of customized service at the press of a button. It’s important for institutions to recognize how different demographics prefer to bank, their pain points, and how best those preferences can best be implemented into a digital banking strategy.
Online and mobile solutions aren’t just for the technologically-savvy anymore. To expand their account holder base, some banks and credit unions have started to shift their attention towards the younger age demographics for good reason - they make up the largest percentage of the current workforce and are a sizeable group of potential digital users. But, those from older generations have been quick to adopt digital solutions as well, and can’t be forgotten so quickly.
In this first entry of our two-part series, we’ll be looking at the similarities, and differences, of Baby Boomers and Gen Xers.
Baby Boomers, or those born between 1946-1964, still make up about 25% of the U.S. workforce. Due to the rapid digitization of the financial services industry, Baby Boomers have begun to adopt a more digital means of banking. A large majority of this age demographic own at least two or more devices— a phone, laptop or desktop computer, and a tablet device. As a result, banks and credit unions should expect Boomers to leverage digital solutions to manage their personal finances, as well as those linked to their businesses.
As Baby Boomers begin to approach or have recently entered retirement, platforms that offer advice and supportive features to create long-lasting financial plans are of interest. Features that offer a glance into one’s existing portfolio, in tandem with financial planning tools, fill this rapidly growing need with Boomers. Helping account holders determine how best to handle personal finances and to navigate spending or saving in retirement is also a way to build trust and loyalty for your institution. These digital banking capabilities not only increase overall remote banking confidence but continue to strengthen relationships with your bank or credit union.
In contrast, Generation Xers find themselves in a tricky position in the U.S. workforce— surrounded by the soon-retiring Baby Boomers and the swell of the new Millennials. Born between 1965-1980, Gen Xers have the most debt of any generation with student loans and mortgages, and are focused on paying it off, while balancing personal finances. The management of thinly strung resources often creates an uneasiness when adopting new forms of banking.
To appeal to Gen Xers within the digital banking arena, the name of the game is simplicity and straightforwardness. Often seeking a path of least resistance, Gen Xers expect significant security and fraud prevention measures, as well as simple, intuitive digital banking capabilities that allow for rapid, secure transactions. Risk mitigation is also one of Gen X’s largest concerns— ensuring their assets are protected and managed wisely. Because of this, Gen Xers want to make smart financial decisions, both for themselves and for their businesses, and are in search of tools that will assist them in handling lingering debt, life changes, and market fluctuations.
Where do we go from here?
The biggest commonality with digital banking across both the Baby Boomers, Gen Xers, and other account holders is the necessity for data-driven tools and campaigns that can help plan for long-term financial decisions, as well as those that are tailored to specific needs. For example, contextual ads based on someone’s unique financial story, and analytics-backed insights to make more informed decisions about spending and savings. Despite one’s different stage of life, Baby Boomers and Generation Xers are both interested ensuring long-term financial security, managing accounts remotely, and banking on their own terms. These personalized approaches allow financial institutions to tailor their digital banking solution to meet these unique needs.
Alogent continuously monitors industry trends for both the short- and long-term, ensuring our digital banking platform, NXT, brings you the most cutting-edge capabilities that drive engagement with account holders of all demographics. With integrated business and consumer banking functionality, and a unified approach across all online and mobile channels, NXT is simple and intuitive, with the ability to include personalized campaigns that appeal to account holders’ individual financial stories and life changes.
Learn more today Connect with our digital banking team.
Stay tuned for part 2 of this blog series where we’ll explore the digital banking trends of Millennials and Generation Z.
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