Millennials Are Improving Banking For The Rest Of Us (OPINION)

Every few years a new wave of media stories cover research about how the newest emerging generation is going to change everything about our culture because of how differently they think and act from previous generations.

To some degree, every generation alters how the world around them operates, including how they use, spend and save their money. As an industry, bankers are paying particular attention to these generational changes in order to anticipate required adjustments while still serving the needs of their more long-term customers. And while some people might consider change for change’s sake to be unnecessary, oftentimes a little updating can lead to better things for everyone.

The Millennial generation, or those born predominately during the 1980s, came of age during the turn of the millennium. They grew up seeing and using wireless technology that was previously restricted to desks or hardwired to walls — mainly they have benefitted from the advent and growth of the cellular telephone and the subsequent birth of the hand-held computer, or tablet. They are the mobile generation. They engage with their friends and family, conduct business and are entertained through their devices that are constantly at their fingertips.

Millennials have benefitted from endless options, customized experiences and an environment focused on individuality. As a result, they naturally have more elevated expectations than some previous generations for their individual needs being understood and met. They are less likely to accept that the world has strict codes of how things work. Their expectation is for services to work uniquely to accommodate their needs.

Their demand for mobile, bank-anywhere-and-anytime technology has left the banking industry as a whole is working to identify the characteristics of the branch of the future. Although some may think this could mean the end of the brick-and-mortar bank branch, Millennials are emphatic that branches are important when choosing a bank. A July 2014 online survey of 322 Millennial-age professionals (those who attended college and are gainfully employed) found that 82 percent said the number of branches was important and 47 percent said the convenience of branches would influence their decision on where they would bank. This is despite the fact that 49 percent said they bank primarily on computer and 23 percent bank primarily on a smartphone.

Indications are that, while technology relieves bank branches of some transactional functions, younger audiences will continue to need advisory services while making important financial decisions. Having lived through the Great Recession, Millennials want to make sound financial decisions, so banks need associates who are prepared to assist them in these areas. 

Ultimately, the most beneficial Millennial-attributable change is the personalization of how products and services are delivered. This generation wants options, special debit card artwork, and they want flexibility in managing their accounts in ways that work best for them.

As a result, banks are pushing the limits of what was previously possible. We have mobile apps that allow customers to pay bills or deposit checks from literally anywhere, and will help pinpoint the nearest branch if you need help. There are new services like Apple Pay and Google Wallet that make paying for goods and services more convenient. Customers now have access to ATMs that learn their preferences. Flexible rewards programs allow users to select redemptions that appeal the most to them.

These innovations in financial services could ultimately enhance the banking experience for all ages. The most successful banks will be those that identify the right products and services for Millennials and deliver these benefits to all customer segments.

So, if you see a new product or innovation from your bank, you can thank a Millennial for helping us all make the future of banking a little more personal — one individual at a time.  W

Jason Kincy is the marketing director for Arvest Bank. He can be contacted at 479-757-8435 or via email at [email protected].