Banking Trends with Millennials

Many millennials rely on current and savings accounts to manage personal finances.  They are, however, increasingly swapping brick and mortar banks for new banking options.  According to Rebecca Lake (“the balance”, updated March 5, 2019), when millennials are unhappy with their bank, they move.  Gallup poll suggests millennials are 2.5 times more likely than Baby Boomers and 1.5 times more likely than Gen Xers to switch banks.

What are the factors?

·        Convenience and perks – 47% (in U.S.)

·        Fintech companies that are focused on tech approach are more attractive.

Millennials value others recommendations highly-twice as much as convenience and almost as much their own experience.  After a positive experience, millennials are 2.5 times as likely as boomers to post about it online.  As such, the quality of their experience will certainly have a sizable multiplier effect on the bank concerned.

As new technology evolves, including AI and machine learning, banks will have to keep pace.  The balance is to manage personalized experience with digital banking features and products.

Reference: Medallia Institute, “What do Millennials want in a banking experience?”