Industry Insights: Millennial Madness
FIs keep seeking new ways to woo this hard-to-reach generation
A recent Forbes article predicts that 75% of the workforce will be millennials within the next 10 years—the number is already 40%. Currently in their mid-twenties to late thirties, this age group is starting to snap up a plethora of financial services, such as car loans, mortgages, personal loans, business start-up loans and school loans.
Who are they turning to for their primary banking needs? The answer might scare you. Almost three-quarters of Millennials are likely to use at least one alternative financial services provider. Think Apple, PayPal, Square and payday lenders. Additionally, almost half (45%) are willing to switch banks, credit cards, or brokerage accounts when more convenient technology comes along (Accenture).
It’s no secret that banks and credit unions are strategizing about the best ways to market to, serve, and maintain the loyalty of this generation. We’ve put together this collection of recent articles to help you get a better handle on your millennial recruitment strategies.
- Community Banks and Credit Unions Face Generational Obsolescence, Financial Brand. What percentage of your account holders are Millennials? This article presents the results from FIS Global’s 2017 PACE Report on the average account holder generational segmentation among financial institutions.
- Mining Millennial Data, CUES. What are other institutions doing to attract the millennial population? This article gives tips from three community financial institutions on what’s worked best in their marketing and recruitment efforts.
- Millennials, P2P payments and FinTechs: what banks should be watching in 2017, Network World. Over half (53%) of Millennials don’t see any difference between one financial institution and the next, and one in three would consider jumping ship for another provider that offered better service. This article advises about three tangible things that financial institutions should focus on for the remainder of 2017 to reach Millennials.
- Building an Emotional Connection Creates Value in Financial Services, Financial Brand. What’s the secret to appealing to the elusive millennial generation? Connecting with them on an emotional level using modern data analysis and technology. This article offers insights into how to tailor your marketing strategies to resonate with their unspoken desires.
About the Industry Insights Series
Alogent’s Industry Insights—this blog and the companion newsletter series—track insights into transformative financial technologies as they happen. Our diverse team of experts pulls the threads together and weave in thoughtful—often actionable—analysis to help banks and credit unions keep their competitive edge and meet new generations of consumers where they’re going next.