How banks can attract Millennials to become loyal clients and diligent employees
Each generation is different from the others. Millennials aka Y Generation born amidst the rise of digital technologies present a serious challenge to traditional businesses such as banking. Actually, they are tired of banking per se. The majority of them don’t trust large banks and believe an alternative should be found soon. They hate queues, bureaucracy, and complex money operations.
However, they can eagerly join both the customer base and the ranks of bank employees, once their needs have been satisfied by the industry. To begin with, let’s define the main characteristics commonly attributed to this special generation.
Millennials: who are they?
- Millennials love themselves. They have a strong sense of entitlement and can be quite egocentric.
- They were born and raised with media technologies. They prefer digital communication.
- They don’t like rigid hierarchies and prefer shared leadership.
- They cherish work-life-balance and social equality.
- Millennials are used to dynamic changes, creativity and meaningful motivation.
- They are team-oriented and socially responsible.
- They like the free and quick exchange of information, immediate feedback, and open communication with their supervisors.
- They are well-educated, active and flexible.
- They have been the largest generation in the US workforce for a while now.
Taking into account the last fact, their needs become increasingly important for any successful business. The numbers point the same way. According to World Data Lab, Gen X has led global consumer spending for several years now, but Millennials are projected to take the top spot in 2036. In the US, Millennials account for 28.3% of all retail spending.
Their relationship with banks is mixed. Few of them are outside the system. The FDIC’s 2023 survey found that only 4.2% of US households had no bank account, while 14.2% were underbanked. But having an account does not mean using a bank for everything. PYMNTS Intelligence found that 44% of Millennials used non-bank financial service providers. At the same time, 85% of people aged 25 to 34 use digital banking, based on the FDIC’s 2023 data. EMARKETER also forecasts that over 80% of US Millennials will make peer-to-peer payments in 2026. In other words, Millennials are already banked and already digital. What they choose is who gets their business.
Here are a few tips on how to engage Millennials into banking.
Top ways banks can reach millennials
Take a personalized approach. They are used to feeling special. Your standardized attitude may spoil communication. Branches should be convenient and inclusive. Financial experts must get ready to give individual consultations, also extending their services to live chats and messengers.
Use media and technologies. Your target audience is always online, that’s where you place your ads. Facilitate mobile banking, that’s how Millennials prefer to finish their transactions. Make sure your mobile app is competitive and easy to navigate. Clumsy technologies may be the reason for the Y Generation to change their bank. Consider merging your app with other service firms. Better functionality and a universal digital environment will single you out among your competitors.
Get Millennials on board. Who could better understand them than Millennials themselves? Employ them to find better solutions for your banking marketing.
Highlight opportunities. Millennials tend to switch jobs often. The chances of them leaving your team are especially high during the first year. They will not tolerate the absence of career growth or poor work-life balance. Get them interested right away with vivid growth charts, seamless transitions, and creative projects.
Remember they are adherents of social causes. If your bank is involved in volunteer activities, environmental campaigns, charity or social work, it can be to your benefit. Millennials will find additional meaning in joining your customer or employee ranks.
Build a person-oriented culture. Millennials hate hypocrisy and rigid communication. Be sure to make them feel welcome, ask their opinion and give prompt feedback on their work. Make your corporate culture centered on human assets rather than profits. Clearly express your vision and mission statements. Millennials like the sense of purpose to their activity. However, be honest in those. If they find denunciating feedbacks of your former employees or clients, they will not join the team.
Focus on learning. Education is important to Gen Y. Professional training should always raise their level of competence. When they feel stagnation, they’re likely to search for something more promising.
Don’t overlook Generation Z. They are already in the workforce and in the customer base, working alongside Millennials. Be ready to focus more on social media and become more interactive. This will also help you to create a positive and pervasive brand image. Stay tuned.
