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The Millennial Migration:How Banks Can Remain Relevant InTheir Decision-Making Eco-System
A Global Banking Consumer Survey and Report by Oracle Financial Services
Inside This Report
1. Seize the Millennial Moment
2. Influencers Participating in the Report
3. The Many Shades of Millennials a. Millennials only see banking as transactional
b. Can banks capitalize on Millennials’ trust?
c. Millennials are beginning to adopt Non-Bank Transaction Modes
d. Young and Mature Millennials together wield the biggest influence
e. Mobile-First experience for the “Always-On” generation
4. The Millennial Migration to Non-Bank Transaction Modes – Measuring the Shift
5. Moments that Matter: Millennials’ Life Moments a. Integrating Life Moments and banking
b. A needs-based approach will win the hearts of Millennials
c. 5 lifestyle services Millennials want from banks
d. Breaking into Millennials’ digital space
6. The Human-Centric Design to Win Millennials a. Adopt a Mobile-First approach
b. Make every customer experience feel personal
c. Look out for Partnerships
7. Team Behind the Report & Acknowledgements
1 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
1. Seize the Millennial Moment
Millennials are the largest generation in world history, numbering 80 million1 and
commanding $1.3 trillion2 in direct annual spending in the U.S. alone. They now represent
a mainstream banking demographic with ever-increasing financial power. Having grown up
in an App society, their expectations are changing the game for almost every industry on
the planet and banking is no exception.
As the largest consumer base for banks, an examination of where and how Millennials are
making their financial decisions presents immense opportunity for banks and FinTech
startups (“FinTechs”), to build an eco-system of compelling digital experiences that
seamlessly integrates into Millennials’ lifestyles. That’s why we set about surveying 4,646
respondents across 9 markets – Brazil, Canada, China, France, Germany, India, Japan, UK
and the U.S. to get a view on how financial institutions can enable their highly digital &
mobile lifestyles.
This report takes a closer look at the milestones in Millennials’ lives that matter most, what
we call ‘Life Moments’, and who they are most likely to engage with around them. These
moments provide the inspiration for what we believe is a new model for lifestyle banking:
One that propels banks from a transactional platform or service provider, to a loyalty and
trust-invoking brand that is seamlessly integrated with the Millennials’ lifestyle.
There is immense opportunity for banks to be a major digital player seamlessly integrated into Millennials’ lifestyles.
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2 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
2. Influencers Participating in the Report
DAVID M. BREARCo-Founder and CEO11:FS
ROB FINDLAYFounderNext Bank
David is a Banking & FinTech strategist, speaker, scholar, writer and VC. One of the most
influential people in Banking & FinTech globally, he established 11:FS to become a subject
matter expertise led source of benchmarking, research, advice and investment, and
recently launched an investment fund with Chris Skinner and Life.SREDA. His experience
with top financial services global brands gives David a truly unique vantage point on the
FinTech and Banking industry.
https://www.linkedin.com/in/davidbrear
AMIT GOELCo-FounderLet’s Talk Payments (LTP)
Amit is the Co-Founder and Managing Director of Let's Talk Payments (LTP). At LTP, he
provides the same level of analytical rigor that analysts put into their work combined with
Content 2.0 technology to offer unparalleled satisfaction for readers in the FinTech space.
Listed as one of 2015’s Top 100 Influencers and Brands in FinTech by Onalytica, Amit is
currently building a FinTech Market Network called MEDICI along with the LTP team. He
has a rich background in advising a wide variety of clients in FinTech, commerce and
technology space.
@amitTwitr https://www.linkedin.com/in/amitpayments
Rob is the founder of Next Bank and leads the group wide UX practice at DBS Bank in
Singapore. Prior to this, he was Director of Innovation for BlackBerry Asia Pacific. Rob
began his career in the creative industry, running his own brand and design company.
Transitioning to financial services, Rob led the customer experience for National Australia
Bank’s direct banking channels, and led a culture change programme at OCBC.
@robfindlay https://www.linkedin.com/in/robfindlay
SCARLETT SIEBERSVP, Global Business Development,New Digital BusinessesBBVA
Scarlett secures partnerships and opportunities within the BBVA ecosystem, and is the US
lead for BBVA's millennial initiative. She is also the face of BBVA when it comes to
speaking roles, mentorship in national accelerators, and judging startup competitions. A
regular contributor to Huffington Post, Forbes, and WeWork, Scarlett is also a NYC Fellow
of Startup Leadership Program and has been named amongst the top 50 most influential
people in FinTech by Onalytica in 2015.
@ScarlettSieber https://www.linkedin.com/in/scarlettsieber
Disclaimer: The above influencers contributed to this report in their personal capacity. The views expressed are their own, and do not necessarily represent the views of their organizations, of Oracle, or of Wharton FinTech.
@davidbrear
3 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
We define Millennials as four sub-sets: Young Millennials, aged 18-21; Middle
Millennials, aged 22-25; Mature Millennials, aged 26-30; and Grey Millennials, aged
between 31 and 45 years old.
Grouping Millennials by age reveals nuances in their behaviour towards banks and how
they approach financial transactions.
We will look at Millennials through 3 user personas - meet siblings Amy, Brian and Nicole;
home together for the first time in a year and a half.
Bringing the 3 siblings together highlights important differences in their current banking
attitudes and lifestyle priorities. Our findings uncover the nuances in their preferences on a
number of dimensions, which differ by age and location. These are some of the key
takeaways.
3. The Many Shades of Millennials
Name : Amy (Young Millennial)Age : 19Lives in : New York CityJob : StudentLikes : Snapchat, Venmo, Instagram
Name : Brian (Middle Millennial)Age : 23Lives in : ShanghaiJob : Brand ManagerLikes : AirBnb, payWave, Spotify
Name : Nicole (Mature Millennial)Age : 28Lives in : ParisJob : LawyerLikes : Pinterest, Net-a-porter, Luxury goods
Meet the Millennials’ Personas
Age 18 - 21 : Young Millennials11%
Age 46+ : Non-Millennials15%
Age 22 - 25 : Middle Millennials23%
Age 26 - 30 : Mature Millennials27%Age 31 - 45 : Grey Millennials
24%
We polled more than 4,500 respondents in 9 markets – Brazil, Canada, China, France, Germany, India, Japan, UK and the U.S.
There are important differences in the way Millennials think about and approach financial transactions, depending on whether they are Young, Middle, Mature, or Grey.
Amy is a Digital Native who grew up in an App culture and
documents her every move online, she is extremely reliant on her
social network for key decisions which currently revolves around
her graduation trip.
Brian is a Digital Enthusiast who sports the latest technology and
innovations. He spends most of his free time online, researching
his next career move.
Nicole is a Digital Convert but is much more selective about her
digital eco-system and relies on trusted advice especially with
planning her upcoming wedding and honeymoon.
Most Millennials maintain a transactional relationship with their banks, regarding them as
primarily a safe place to store money. This was most prevalent amongst Young Millennials,
91% of which do not view banks as a lifestyle-enabling institution.
Consumers are already running out of patience at
banks' lack of adaptation to a new digital future;
voting with both their wallets and their notion of trust.
The statistic that 60% trust banks (and is probably
declining) rocks the very assumption and currency
banks have around their role in the global economy.
a. Millennials only see banking as transactional
Which statement do Millennials (Age 18 – 45) see asthe most accurate?
4 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
60%
31%
9%
My bank is a safe place to keep my money
My bank helps me to manage my personal finances
My bank helps to support my lifestyle
Banks’ motivation for investing in digital banking has
been driven by cost reduction, resulting in
underwhelming experiences being delivered.
Millennials want more and banks need to wake up
before alternatives gain real pace.
DAVID M. BREAR
ROB FINDLAY
Other Sources:
59%
OnlineForums 35%
OnlineFinancialAdvisors
31%
87%
Millennials also trust their banks on matters regarding personal finances if such advice
were provided. An overwhelming 88% indicated so, above family / friends and personal
financial advisors.
These observations reflect the potential for banks to evolve into a bigger player in
Millennials’ lives. They can capitalize on the high level of trust that Millennials currently
have in them for providing personal financial advice, and design customized products and
services that would enable Millennials to make their decisions easily and seamlessly
without leaving their digital eco-system.
Banks are still the most trusted source for advice on personal finances
Banks
Family /Friends
PersonalFinancialAdvisors
With banks maintaining a high level of trust in holding funds and managing personal finances, this trust can be built upon through the design of products and services that integrate seamlessly with Millennials’ lives.
5 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
20% 40% 60% 80%
88%
Qn: Thinking about seeking advice on your personal finances, please indicate 3 of the following sources that you would trust the most?
b. Can banks capitalize on Millennials’ trust?
6 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
While traditional payment methods are still the primary platforms for transactions,
Millennials are increasingly showing affinity towards non-bank alternatives.
Currently, the most frequently used payment modes are cash, bank cards and online
banking, which registered significantly higher usage (79%, 76%, and 71% respectively)
than non-bank alternatives such as alternative payment providers (like PayPal) or mobile
wallets.
Yet we also found that non-bank options are gaining greater traction with Millennials,
where the older the Millennial, the higher the likelihood of trying an alternative payment
method, with these alternatives being most popular amongst Mature Millennials.
c. Millennials are beginning to adopt Non-Bank Transaction Modes
Mature Millennials (Age 26 - 30) are most likely tohave used non-bank options than any other age group
While traditional payment methods are still primarily in use, non-bank options are gaining traction amongst Mature Millennials, who are most willing to consider alternatives.
Qn: Which of the following methods have you used in the last 6 months to make a financial transaction?
Highest percentage of respondents who have used non-bank options
Alternative PaymentProviders (e.g. Paypal)
49%Age 31 - 45
Mobile Money
18%Age 26 - 30
Peer-to-Peer PaymentPlatforms (e.g. Venmo)
7%Age 26 - 30
Mobile Wallet
26%Age 26 - 30
Close to 70% of the Indian Internet population are
Millennials, who are driving the mobile wallet adoption
in India estimated at US$2.2 billion in 2015. The
mobile payments market in China is estimated to be
over US$180 billion. The average age of Yu’e Bao’s
(Alipay’s investment platform) nearly 50 million users
is currently 28.
AMIT GOEL
7 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
In particular, Mature Millennials are more likely to use mobile wallet and mobile money, while Young Millennials prefer peer-to-peer payment platforms and alternative payment providers.
Together, Young and Mature Millennials being increasingly open to non-traditional modes of payment and maintaining substantial buying power represents a large financial opportunity for
banks to offer and monetize new payment products and services for these groups.
Qn: Which of the following is your preferred transaction mode? Select the top 3.
Percentage of Millennials (Age 18 – 45) who prefer non-bank options against Non-Millennials (Age 46 & above)
Young Millennials (Age 18 – 21) have the highest preference for Alternative Payment Providers and Peer-to-Peer Payment while Mature Millennials (Age 26 – 30) have the highest preference for Mobile Walletand Mobile Money
d. Young and Mature Millennials together wield the biggest influence
4%Age 46+
1%Age 46+
11%Age 18 - 45
4%Age 18 - 45
Mobile Money Peer-to-Peer PaymentPlatforms (e.g. Venmo)
40%Age 18 - 45
36%Age 46+
7%Age 46+
19%Age 18 - 45
Alternative PaymentProviders (e.g. Paypal) Mobile Wallet
Globally, 68% of Millennials chose Mobile or Desktop as their most frequent channel of
interaction with their banks. In the U.S. alone, 75% of Millennials are cited to be at least
somewhat reliant on mobile banking to manage their accounts, and more than one quarter
completely rely on it.3
Corresponding with Millennials’ high dependence on mobile are their equally high
expectations for their digital experiences. There is a general sentiment that banking
applications can be improved, a finding supported by SNL Financial who also found that
that 53% of Millennials see their mobile banking applications lacking, with 54% of that
group saying they would switch providers if the alternative offered better applications.4
e. Mobile-First experience for the "Always-On" generation
More than 68% of all Millennials say Desktop or Mobile is their most frequent channel of interaction with their Banks
Mobile
Desktop
Younger Millennials are more likely to use mobile devices when interacting with their banks
Retail StorePhone
Other Channels of Interaction with Banks (by age groups)
Branch
19% 18%17%16%5% 4%3%6%
5% 4%7%6% 4% 4%5%6%
With most of their interactions going digital, the future of digital banking belongs to banks who develop banking applications with a Mobile-First mindset.
8 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
Qn: Rank how often you interact with your bank through the following channels.
28%Age 26 - 30
29%Age 18 - 21
38%Age 18 - 21
30%Age 22 - 25
38%Age 22 - 25
41%Age 26 - 30
47%Age 31 - 45
24%Age 31 - 45
Banks need to stop treating mobile banking as a
dumbed-down version of Internet banking. It should
be the centre of all customer touch points.
Millennials expect a better ability to multitask, to save
time and money. They want mobile products and
experiences that enable them to do things in two to
four clicks.
AMIT GOEL
DAVID M. BREAR
4. The Millennial Migration to Non-Bank Transaction Modes – Measuring the Shift
43% of all Young Millennials prefer Alternative Payment Providers and 6% of them prefer Peer-to-Peer Payment Platforms, more than any other age group.22% of all Mature Millennials prefer Mobile Wallet and 14% of them prefer Mobile Money, more than any other age group.
52% say Alternative Payment Providers (like Paypal) is one of their Top 3 preferred transaction modes, compared to the global average of 40%. Of the 9 markets, they have the highest ratio of those aged 18 – 21 (64%) who selected this.
Only 8% selected Mobile Wallet as one of their Top 3 preferred transaction modes, compared to the global average of 19%. Highest ratio of cheque users (60%) amongst all 9 markets.
15% selected Mobile Wallet as one of their Top 3 preferred transaction modes, less than the global average of 19%.
Out of the 9 markets, China has the highest
ratio of Millennials who have used Mobile
Money (46%) and Mobile Wallet (60%) in
the past 6 months.
Out of the 9 markets, Germany has the highest ratio of Millennials (69%) who have used Alternative Payment Providers (like Paypal) in
the past 6 months.
24% and 38% have used Mobile
Money and Mobile Wallet
respectively in the past 6 months.
When asked about their Top 3 preferred
transaction modes, 23% selected Mobile Money
(double the global average of 11%) and 31% selected Mobile
Wallet (compared to the global average of 19%)
Only 10% have used Mobile Wallet which is less than half of the global average of 23%.
50% selected Alternative Payment Providers (like Paypal) as one of their Top 3 preferred transaction modes.
Migration Maturity Index
- Low- Moderate- High
9 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
10
The way for banks to integrate into Millennials’ lifestyles is to examine where and how
Millennials are making their financial decisions. By looking at data, such as spending
patterns, and launching surveying effort to identify the most relevant moments in a
customer’s life, banks gain valuable insight on where to focus their new product
development efforts. These moments that matter are what we refer to as Life Moments,
ranging from daily shopping & budgeting, to major commitments like finding a new job and
planning a vacation.
As the nature of spending priorities differs between Young, Middle, Mature and Grey
Millennials, we sought to understand their top 3 Life Moments to identify where these
priorities lie.
Depending on what stage of their life they are in, we find Millennials globally prioritizing
their expenditure decisions according to these top 3 Life Moments: Planning a vacation
(25%), Finding a new job (17%) and Daily shopping and budgeting (16%).
5. Moments that Matter: Millennials’ Life Moments
Qn: Which of the following life moments appeal most to your lifestyle right now? Select 1 only.
Top 3 Life Moments Selected By Millennials
The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
Top Life Moments for Millennials differ by age. Banks are in the best position to align data and provide customers with financial services regardless of which stage they are in their life.
Planning a Vacation
Deciding on a College/ Furthering Studies
Finding a New Job
Young Millennials (Age 18 - 21)
31%
19%
16%
Middle Millennials (Age 22 - 25)
22%
Planning a Vacation
Deciding on a College/ Furthering Studies
Finding a New Job
21%
14%
Mature Millennials (Age 26 - 30)
Daily Shopping& Budgeting
Planning a Vacation
Finding a New Job
17%
15%
26%
11 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
a. Integrating Life Moments and banking
Millennials are, at best, lukewarm regarding the current ability of banks to help them in
their Life Moments, with less than 10% of them seeing their bank as helping to support
their lifestyle.
A silver lining is that Millennials, especially Grey Millennials, are ready to interact and
engage with banks in new ways. Banks are their third most trusted source for
information and advice when making decisions related to Life Moments, compared to
their social network of family / friends, as well as search engines – a finding more
pronounced in older Millennials than younger ones. Millennials would, however, rather
turn to banks than media outlets, non-bank payment providers and retailers.
Ranking of Sources when Making Decisions bypreference
Qn: Whom would you like to help you prepare for or make decisions related to the selected lifemoment?
Young Millennials (Age 18 – 21) Middle Millennials (Age 22 – 25)
Mature Millennials (Age 26 – 30) Grey Millennials (Age 31 – 45)
1
2
3
4
5
6
7
Family / Friends
Search Engines
Social Networks
Banks
Media Outlets
Non-Bank Payment Providers
Retailers
Search Engines
Family / Friends
Social Networks
Banks
Media Outlets
Non-Bank Payment Providers
Retailers
1
2
3
4
5
6
7
Search Engines
Family / Friends
Social Networks
Banks
Non-Bank Payment Providers
Media Outlets
Retailers
1
2
3
4
5
6
7
Family / Friends
Search Engines
Banks
Media Outlets
Social Networks
Non-Bank Payment Providers
Retailers
1
2
3
4
5
6
7
There is a huge opportunity for banks to move up the
ranks through the twin principles of transparency and
simplicity.
SCARLETT SIEBER
12 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
Millennials are also willing to explore new products and services by their banks aimed at a
broader set of lifestyle and financial needs. 51% are likely or very likely to try new services
offered by their bank, and a further 28% are neutral.
When asked if they would be receptive to banks offering ways to help them prepare for
Life Moments, the answer was a resounding ‘Yes’.
However, the bad news is the propensity to engage with these new types of services
decreases with the younger Millennials. Young Millennials are the least receptive to new
services offered by their banks, having grown up in an environment where the
decision-making eco-system is more fiercely competitive than that of Mature Millennials.
Millennials currently do not see their bank as lifestyle-enabling, but are resoundingly open to banks offering new ways to help them prepare for Life Moments. Banks have to move swiftly before the opportunity is lost.
Percentage of Respondents who said they are 'Likely' or 'Very Likely' to try new services bytheir bank
51% said they are ‘Likely’ or ‘Very Likely’ to try new servicesrelated to life moments
60%
50%
40%
0%Age 31 - 45 Age 26 - 30 Age 22 - 25 Age 18 - 21
Millennials may be willing to try new services, but
they have equally high expectations and are less
forgiving of poor execution and user experience.
Banks need to provide a customer experience of a
higher level than what they are delivering now.
DAVID M. BREAR
13 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
Millennials struggle to make decisions and plan for these Life Moments and the top
challenges they face in making these decisions are Choices, Affordability, and Experience.
Consider Amy’s graduation trip planning process. As she searches through the vast price
comparison sites and customer reviews available, she cannot help but feel that she may
make the wrong choice.
Banks can take this opportunity to provide contextual banking solutions by integrating
their products and services into Millennials’ decision-making process during key Life
Moments such as the one Amy is facing. In this instance, this data-driven banking
approach could have helped Amy with the heavy-lifting when planning her vacation; by
providing recommendations based on her financial position, made relevant with data from
her previous trips and like-minded customer reviews.
Top Decision-Making Challenges faced by Millennialsduring Key Life Moments are related to Choices,Affordability and Lack of Experience
Planning a Vacation
47% said “I have too many choices” and 35% said “I’m not sure I can afford this”
Finding a New Job
36% said “I don’t have experience with this” and 35% said “I don’t know how to start”
Daily Shopping& Budgeting
44% said “I have too many choices” and 35% said “I’m not sure I can afford this”
With the customer data they already have, banks are in a prime position to provide Millennials clarity when making important financial decisions.
b. A needs-based approach will win the hearts of Millennials
Qn: Select the primary challenges associated with the selected life moment. You can select as manyas applicable.
14 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
c. 5 lifestyle services Millennials want from banks
The top 5 services Millennials were the most positive about that banks could potentially
offer are: 1) Discounts at relevant stores; 2) Checklists for tasks related to life events; 3)
Recommendations based on customers like them; 4) Professional / expert reviews; and 5)
Budgeting Tools or content. There is clear synergy between Millennials’ preference for
these services and the functions they serve addressing the top 3 challenges with
Millennials’ Life Moments that we identified earlier – Choices, Affordability, and
Experience.
Top 5 New Services with Highest Percentage of Millennialswho said they are ‘Likely’ or ‘Very Likely’ to try it
53% 52%Budgeting Tools or ContentProfessional / Expert Reviews
54%
57% 55%Checklists For Tasks
Related To Life MomentDiscounts at
Relevant Stores
Recommendations BasedOn Customers Like Them
Qn: How likely would you be to try the following services if your bank offered them to help youwith this life moment?
15 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
20% 40% 60% 80%
Poor Excellent
70% rated 4 - 530% rated 1 - 3Age 31 - 45
20% 40% 60% 80%
Poor Excellent
67% rated 4 - 533% rated 1 - 3Age 26 - 30
20% 40% 60% 80%
Poor Excellent
65% rated 4 - 535% rated 1 - 3Age 22 - 25
20% 40% 60% 80%
Poor Excellent
63% rated 4 - 537% rated 1 - 3Age 18 - 21
The younger the Millennial, the less satisfied they arewith their digital banking experience
The younger the Millennial, the less satisfied they are with their digital banking experience. Banks have to look before they leap into the digital game because they only get one shot with Millennials. They are more digitally savvy and their standards are high, being familiar with other digital players who have set benchmarks. Banks need to consider how well they can design and deliver these products and services in this competitive environment.
d. Breaking into Millennials’ digital space
Banks do not currently figure into Millennials’ thought process when it comes to their life
moments. Nor is the current digital banking experience they are providing Millennials up to
mark.
Millennials are digitally savvy – the younger they are, the more so – and they live in a digital
eco-system where other non-bank players are more prominent. Banks have stiff
competition and high benchmarks to consider, which is why younger Millennials are less
satisfied with their experience with digital banking than older Millennials.
Banks need to demonstrate new capabilities and transform their relationships with
younger Millennials in order to rise above the clutter and remain relevant.
This is not an insurmountable task, having the twin advantages of still being regarded as
important, as well as younger Millennials’ affinity with the digital space. The way to gain
trust – which we define in this context as banks’ ability to meet Millennials’ needs for key
life moments, rather than banks’ ability to store their money – is to provide timely digital
services made absolutely relevant by the wealth of data held on that customer.
Qn: On a scale from 1 – 5, how would you rate your existing digital banking experiences?
16 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
Banks need to take a human-centric approach in their product development strategies. They should leverage their customer data strategically to design and deliver an experience that is mobile, personalized and value-added. They should act now, before other digital players take their place.
The key to building trust and emotional rapport with Millennials is to develop products
which would help them mitigate their top associated challenges in making decisions and
planning for their Life Moments: Challenges such as Choices, Affordability, and
Experience.
Take Mint, an app which is experiencing rapid adoption among Millennials in the U.S. A
free, web and mobile-based personal finance application, Mint enables consumers to
spend smarter and save more. Mint users pull all of their accounts, cards, and investments
into one place so that they can track spending, create a budget, receive bill reminders and
track credit score.
Because Mint makes it easy to track daily spend and makes budgeting simple and
transparent, it appeals to Millennials who do not have experience managing budgets, nor
know where to start in making and achieving financial goals such as the affordability of a
first home. It is also personalized, with customized tips for reducing fees and saving
money based on the user profile and transactional behavior. It can also be linked to their
bank account.
Banks can easily replicate Mint’s success. In taking a human or user-centric approach, they
need to design an experience that reduces friction amongst all of Millennials’ financial
needs. In particular, they need to pay attention to the following development strategies.
6. The Human-Centric Design to Win Millennials
With 80%+ of Millennials owning smartphones and 97% of those devices
running on either iOS or Android, any new product should first and foremost be
optimized for these media. More than just looking beautiful, a user-centric
approach in both visual design and usability on a mobile and desktop platform
will improve engagement, which would in turn drive relevance and trust.
a. Adopt a Mobile-First approach
Banks that embrace a digital first approach - BBVA,
Alibaba, Tencent, WeChat, DBS, CommBank, Hana
Bank on the banking, tech or corporate side, and
Transferwise, Everledger, Lufax, Lending Club, Stripe
on the start-up side - will make the best impact. Too
many are simply 'nibbling around the edges' and need
to jump in the deep end!
ROB FINDLAY
To stand out from the clutter, banks need to build emotional engagement with their
customers. By making sense of customer data available to them, they can provide
customers with personalized, relevant, and contextual solutions to fit their current lifestyle
needs. Banks also need to take a holistic view of how their multiple products and services
can work together instead of existing in silos, creating a seamless experience for
Millennials who may have multiple accounts, relationship managers and lifestyle needs.
These efforts would make every customer believe his digital journey is a carefully curated
experience.
b. Make every customer experience feel personal
Banks can tap insights from their customer data to identify other brands making an impact
in the same space that they want to be in to. This should serve as a basis for potential
partnerships in offering new solutions. With this foundation, banks can create services that
enhance, rather than compete with, the services that customers use and love. By
associating a bank’s brand with these beloved companies, and by providing novel value,
banks tap external brand associations that reposition themselves as a lifestyle-enabler.
c. Look out for Partnerships
With the focus less on banks and more on banking,
banks should find the right partners and the right
engagement models, be it investments, client-vendor,
a JV or any other such relationships, to remain
relevant. They can collaborate with FinTech
companies to deliver a better user experience, which
we are already seeing with some banks. BBVA
launched a robo-advisor product in the market with
FutureAdvisor and DBS Bank recently launched a
mobile-only bank in India and used tech from Kasisto
(AI) for the virtual assistance.
17 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
AMIT GOEL
Partnerships are key and associating with brands
Millennials already know and love will provide them
with the best of both worlds - trust and solid
foundation. Now, more than ever, collaboration is key.
SCARLETT SIEBER
18 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System
(1)“Why Small Business Saturday Is Massive Millennial Business”; Nov 25, 2015; at http://www.forbes.com/sites/winniesun/2015/11/25/small-business-saturday-is-big-millennial-business/#4e1eca197669
7. Team Behind the Report
(2) “How Millennials Are Changing The Face Of Marketing Forever”, Jan 15, 2014; at https://www.bcgperspectives.com/content/articles/marketing_center_consumer_customer_insight_how_millennials_changing_marketing_forever/
(3) https://www.salesforce.com/blog/2016/03/stats-about-millennials-mobile-banking.html
(4) http://www.cnbc.com/2015/04/22/for-millennials-banking-is-all-about-the-apps.html
(5)https://www.mint.com/
PARVEZ AHMADDirector of Marketing, Asia Pacific & JapanOracle Financial Services
ELIZABETH STARK
Parvez focuses on marketing strategy, demand generation and thought leadership. He has led global marketing campaigns on Digital Banking and FinTech initiatives, including the impact of Digital on Retail Banking, and the impact of Millennials on the digital banking customer journey. Parvez is also closely involved in the FinTech Startup space in Asia Pacific, being a mentor at Startupbootcamp FinTech, and the creator of innovative online & offline platforms such as #DigitalBootcamp and #DataAnalyticsBootcamp.
@parvezah https://www.linkedin.com/in/parvezah
At Wharton, Liz is involved with the FinTech club, led the Penn Design Challenge with Wharton Innovation & Design, and is a consultant for the Small Business Development Center. Prior to Wharton, she was a Manager in the Corporate Strategy Group at Capital One, leading analyst teams and lead projects relating to product development, customer analysis and experience, and new market entry.
https://www.linkedin.com/in/lizstark
MONICA MYERS
Monica is a second year MBA student majoring in Marketing and Management. She recently won the 2015 Penn Design Challenge, which partnered with American Express and innovation accelerator Made by Many to rethink how “underbanked” consumers can better interact with their finances and manage their spending. Prior to Wharton, she was a Finance Manager at American Express, and recently interned at Google doing business development for its mobile wallet, Android Pay.
@MonicaM_NYC https://www.linkedin.com/in/monicamyers
DIVYA KRISHNAN
Divya is currently pursuing an MBA majoring in Finance and Marketing. During her time at Wharton, she has researched and consulted for a leading online lending company, a startup quantitative risk manager, and a digital currency asset manager. Prior to Wharton, she spent five years at Citigroup as an analyst within quantitative trading and a senior associate in structured products.
@divya08k https://www.linkedin.com/in/divkrishnan
IRFANALI MANJI
Irfan is a first year MBA student majoring in Marketing and Operations. Prior to Wharton, he worked at Capital One launching affluent card products and collaborating with Uber and Intel to build exclusive digital experiences for customers.
@irfanalimanji https://www.linkedin.com/in/irfanmanji
Acknowledgements
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About Wharton FinTech
Wharton FinTech is the first student led FinTech initiative. We are FinTech thought leaders connecting innovators, academics and investors with the ideas and companies that are reinventing global financial services. For additional information on Wharton FinTech and its thought leadership, including access to original content published on its blog and podcast, visithttps://medium.com/wharton-fintech
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