Throughout a variety of studies, it seems that Millennials have a strong message for American banks: change or fall to the wayside.
The Millennial Disruption Index, a study done by Scratch (Viacom Media Networks) surveyed over 10,000 Millennials (aged 19-37) about 73 businesses across 15 industries. The goal was to measure the health of each industry’s future and to gauge how likely Millennials are to disrupt that future. The results coalesced into a picture of what brands are loved, which are meeting consumer needs, and which are poised on the brink of disruption.
According to Scratch:
- 1 in 3 are open to switching banks in the next 90 days.
- All 4 of the leading banks are among the ten least loved brands by Millennials.
- 68% say that in 5 years, the way we access our money will be completely different.
- 33% believe they won’t need a bank at all.
- 73% would be more excited about a new offering in financial services from Google, Apple, Paypal, or Square than from their own nationwide bank.
Apparently, modern banking is poised for disruption.
Will Community- Based Financial Institutions Reap the Benefits?
There is a bright side to this prediction, however. It is possible that the disruption might actually be a boon for community-based financial institutions.  American Millennials and Banking – A Cross-Generational Study conducted by ICBA delved into the perceptions Millennials, Gen X and Baby Boomers have of independent community financial institutions and had some positive findings.
“Community banks and Millennials are the perfect fit for one another—both appreciate local business, and both have a strong entrepreneurial spirit,” said Chris Lorence, ICBA executive vice president and chief marketing officer. “Community banks provide nearly 60 percent of all small business loans under $1 million, so they are an excellent resource for the 46 percent of Millennials who are interested in starting a business.”
Millennials looking to build their future need to look no further than institutions like credit unions.
So, what are Millennials looking for?
According to the latest Cassandra Report a quarterly research and insights study by Deep Focus Millennials have very specific traits that should be applied to the services financial institutions provide:
- A desire for instant gratification
- An expectation for thoughtful personalization
- An interest in digital educational resources
Credit Unions that provide services, communication, and marketing that take these factors into consideration may find that they can capture the future business of Millennial Members. That may be good news for marketers as well. After all, knowing your audience is the key to marketing success.
Image courtesy of Photos of Money https://flic.kr/p/s5ZdWJ
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