How to work with millenialami and their money

Millenialy - the largest and potentially most influential generation in history. Number millenialov and their long-term purchasing power in the coming decades will open up incredible opportunities. Banks are preparing to focus in their work not on the generation X, and on the generation Y, quite unusual and unfamiliar.

StudyJim Marous.Millennials Find Banks Irrelevant. Dedicated to this generation, shows that 71% millenialov better to go to the dentist than will listen to what they tell banks. And 33% is generally considered that they did not have to go to the bank in the next five years. To succeed, banks must learn to work with mobile technology to use sophisticated analytics and build effective strategies to attract customers who currently do not see the need for credits.

Despite the fact that today the main profit comes from generation X, millenialy succeeded him as early as 2022, and in 2030 the profit will be determined now only people from generation Y. In addition, millenialy will determine the financial policy for 32 years or more.

TSYS Corporation develops solutions for electronic transactions with bank cards. In its report dedicated millenialam says that this generation has now become the main source of income, replacing their parents. It is the ability to work with Generation Y depends on the development of business.

Briefly about millenialah

According to the Pew Research CenterRichard Fry.Millennials Overtake Baby Boomers As America's Largest Generation.In 2015 it became the largest millenialy largest generation in history. Before this "record" owned by baby boomers. Generation Y will be the main labor force in 2018. And the banks time to prepare for the domination of the force.

3 millenialov differences from previous generations

Between millenialami and the previous generation (Generation X and baby boomers), there are three significant differences. They need to be taken into account to build a successful strategy in the financial services sector.

1. Millenialy easily adopt new technologies

This is the first generation that has grown up on the Internet, surrounded by digital technology. Therefore millenialy require an immediate response to their questions from companies. They do not tolerate poorly designed interface, and sellers of goods and services necessary to provide a comfortable, intuitive solutions, but still keep in mind that users can go online using smartphones and tablets.

According to a study eMarketereMarketer Company.Millennials Embrace Mobile Banking. , In 2015 about 59% of smartphone users aged 18 to 34 years used mobile browsers, application or SMS to communicate with the bank, credit institution, broker or manage credit card. For comparison, the mobile bank or similar services were used less than 28% of baby boomers.

Because the millenialy choose mobility, banks will have to invest in new technologies that will work just as efficiently and routinely as Apple, Amazon, Google and so on. The financial sector and the need to master social networks to share experiences and talk about money.

2. Millenialy not tied to brands

According to a study of the consulting company AccentureAccenture Company.No Loyalty? Millennials Not Afraid To Dump Their Banks. 18% millenialov changed the bank last year, with 10% of consumers aged 35-54 years, decided on the same step, and only 3% of respondents older than 55 years. This is partly due to the generation of mobility Y. But basically it happens because of the high requirements for those companies which millenialy contact most often.

This generation does not spare time to preliminary research. Prior to the purchase or conclusion of the contract they are evaluating products and services. This means that financial institutions that want to collaborate with millenialamiYou need to make a website and application, always with easy navigation and comprehensive information about products and solutions. Any transaction must be comfortable, and account management - intuitive.

Meanwhile, if millenialy choose some company, then they will contactBoston Consulting Group.U.S. Millennials Engage With Brands Much More Extensively And Personally Than Older Consumers. for many services. That is, financial institutions need to think less about the service of individual transactions, and more about how to build a long-term relationship with each client. This requires a serious work of analysts.

3. Millenialy use alternative payment systems

Generation Y stretchesJim Marous.8 Astonishing Facts Bankers Should Know About Millennials. to new payment methods and carrying out calculations. Millenialy twice as often compared to the X generation using mobile wallets, such as Apple Pay and Google Wallet (32% vs. 16%). More than half millenialov use payment systems, such as Venmo or PayPal. Finally, millenialov should be considered as a group that is willing to actively make use of lending between individuals. 23% millenialov considering such possibility. For comparison, the baby boomers interest in such services is 10 times lower.

Millenialy often using mobile apps banks. Among the people who every day are turning to these applications, 59% are millenialy. So that financial institutions need tools that will allow customers to keep in touch with the company. A mobile application must open access to the account, money management, and fulfillment of any payments.

3 Marketing Strategies

TSYS Corporation recommends that financiers use three strategies that meet the needs of millenialov.

1. Data collection and serious analyst

decades of customer data were used only for reporting. But now there is a set of highly functional and affordable tools for analysts. Client data should be used to develop products that calculate audience, build a relationship with her and offer customers solutions that are needed here and now.

Millenialov attract personalization. TSYS offers four scenarios that could be useful:

• customer acquisition;
• long-term cooperation;
• product development and supply bonuses;
• communications improvement.

2. Attracting customers through technology

Digital attraction of working at the expense of custom built to customer preferences, current online solutions that span multiple devices and channels. This helps to evaluate the behavior of consumers, millenialov during interaction with the company, as well as develop an interest and to develop new proposals for current and future financial needs.

A study of the British magazine Economist analytical unitRoss Wainwright.Mobility, Millennials & Predictive Analytics In Banking. It showed that 82% of the representatives of the banks agree: in the next five years, customers will be in contact with the bank it is through mobile devices. So financial institutions for TSYS estimated succeed if built into their work digital tools to help millenialam choose and make the right financial decisions. It services such as customizable alerts for low account balance, automatic recurring payments, notices, software for controlling the finances.

3. bonus strategy

In 2015, a studyTSYS Corporation.TSYS 2015 U.S. Consumer Payment Choice Study. TSYS has revealed that there is still loyalty bonuses and programs affect the behavior of customers of all ages, and millenialy are no exception. Moreover, Gen Y perceives bonus programs not as a way to get something for free, as well as evidence of membership of a particular group. They are willing to use the services of a company, if they feel they belong to a special club, where not everyone can get into.

Those financial institutions that understand millenialov will build strategies based on the information technologies, easy access to services and loyalty programs in the near future will benefit. Realize that you need the Y generation, and to capitalize on this.