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Banking the Future: how to get the tech-savvy millennials?

07.04.2016

The attention span of the typical millennial is only 8 seconds — one second less than that of a goldfish. But as negative as that sounds, it's not really a bad thing. Millennials are astonishingly good at separating truly relevant information from noise, which they let fade away in the background. That's why in order appeal to millennials and win their trust, we need a much more personalized approach that takes into consideration their level of financial literacy, the needs they have, and the issues they face.

The new era of information technology that has been around for a scant 25 years or so has become our new reality, to the point that we barely even notice how privileged we are in comparison to previous generations to have all of the information known to man at our fingertips every second of every day. By far the most privileged citizens of this Information Age are those who were born into it, who don't even remember a time without the internet. And this has greatly affected their mentality and how they see the world.

The Information Age has ushered in a whole new reality, which is of course something that is hard to sum up in one word. But if we did have to choose one word, that word would be acceleration. Now, we all have smartphones, tablets, and lots of other devices that allow us to multitask constantly, thus saving time, money and energy. The aim of seemingly every Information Age invention seems to be to make a task or tasks faster and easier to complete, and thus make life as a whole more comfortable.

Just as devices produced today are meant to make life more comfortable, so should services, or the companies offering them risk being left behind and forgotten. Most millennials have neither the time nor the patience for traditional, bureaucratic ways of doing business, opting instead for alternatives better suited to their needs and lifestyles. The overwhelming success of companies like Uber, AirBnB and even Tinder proves this and should serve as a wakeup call for every company wanting to continue doing things “the good old way”.


Millenials are much more sophisticated media consumers

The young people of today are perhaps the most demanding client group in history. They expect comfort and simplicity everywhere they go, and they can check their smartphones at any time to find out more about a brand, product or service and whether they could be getting a better deal or having a better experience elsewhere. An important takeaway from this is that their need for convenience has made traditional face-to-face meetings much less important to them.

According to a study by the Statistic Brain Research Institute, the attention span of the typical millennial is only 8 seconds — 1 second less than that of a goldfish, and almost 4 seconds less than it was just 5 years ago. Looking at just this fact alone, we can deduce that millennials have perfected both the art of multitasking, as well as the ability to rapidly discard unimportant and uninteresting information. Millennials are astonishingly good at separating truly relevant information from noise, which they let fade away in the background.

Banks need help approaching future clients

With the ever-growing demand for comfort and more innovative approaches, it is becoming increasingly crucial for all companies to be able to get the attention and then win the trust of millennials. Banks, however, are age-old institutions well known for their traditional approach to business, and therefore need to put an exceptional amount of effort into appealing to the young people of today with their services.

Many millennials tend to see banks as imposing, unapproachable institutions that they would need a large amount of financial knowledge to interact with properly, much less have a good relationship with. To overcome these biases, banks have to make an effort to make their relationships with clients more personal and direct. Interactive online video banking is an excellent solution—with the perspective of hours spent in a bank trying to make sense of complicated jargon gone and a consultant just a few clicks away, it brings the bank to the client, not the other way around. On-demand video banking will help banks rid themselves of their reputation as strict bureaucratic institutions that are out of touch with reality and virtually inaccessible to anyone without a degree in finance.  And that's exactly the kind of approach millennials are looking for.





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