Moderator: Phil Alcock - PBF Solutions
Expert: Sophie Robson - MRM
- An opportunity to look at the Millennials - they are your future clients (and future employees) and you need to pay attention to them.
- Millennials are likely to be the first generation since the turn of the last century to be financially worse off than the previous generation. This is in large part due to the financial crisis, plus the unaffordability of UK housing.
- However there are certainly investment opportunities as the Baby Boomers transfer their wealth to them; some are already successful in their own right and have their own money to invest; and if they don’t already have money they will some day – well let’s hope!
- With regard to their current FS requirements, their focus is on mobile banking and debt products rather than any savings / pensions / investments. They are more inclined to be influenced by the ‘gamification’ of their purchasing decisions and so FS providers should be looking at online communities and social media to enhance their product distribution.
- Millennials’ expectations, driven from other online transaction experiences such as Amazon, are likely to influence their interactions with PF providers. They also have very little patience so the initial online experience has to be slick and seamless. “Instant gratification” is a constant theme in describing this demographic.
- This session will consider what makes them tick and how best to market to them.
HEADLINE FINDINGS FROM THE SESSION:
- Millenials’ characteristics with regard to banking: they are connected by new technologies, disillusioned with UK housing market, and accustomed to getting answers. As a result, they have a new set of needs, goals and expectations.
- In providing products and services to Millenials, banks need to evolve quickly and are under threat from alternative FS competitors and technology companies. In particular, banks need to revisit their service delivery and attempt customer-centric innovation.
- Millenials believe banks and FS providers do not speak to them in terms of products and services nor how those products and services are delivered. Very few cases of mortgages for example which are devised for this segment
- Millennials want help and advice from banks and FS providers in areas such as improving their credit history and better managing their money.
- Millennials totally reliant on mobile banking services – if it cant be delivered on a smartphone then not fit for purpose.
- Millennials are used to receiving advice from their peers and family and discussing advice socially and online. Personal networks seem more important than third-party recommendations. Banks therefore can miss out on an invaluable chance to differentiate their offering and drive engagement. This means there is an opportunity for disruption from tech companies who are better placed to deliver.
WHAT ARE THE NEXT STEPS?
- For most established banks, responding to millennial expectations requires a more conscious and consistent effort. Those that rise to the challenge will reap the benefits – successfully differentiating their service, gaining new efficiencies, and taking the fight to the competition.