New Study Shows What Millennials Want From Their Banks

New Study Shows What Millennials Want From Their Banks

According to a new Australian generational banking study from customer experience firm SDL, an overwhelming 49 per cent of Millennials prioritise convenience above all when it comes to banking.

B&T Magazine
Posted by B&T Magazine

SDL research revealed the dominant convenience seeker category consists of individuals with high potential to become loyal customers when offered what they crave – prompt customer service interactions, quick solutions and easy-to-access products.

The cost savers persona accounts for 24 per cent of Millennials, while 14 per cent are security seekers, seven per cent are starters with big bucks and six per cent are newbies with budgets.

“Highly connected and highly empowered, this generation is a holy grail for marketers,” said Kevin Ross, SDL general manager, Australia and New Zealand (ANZ). “While Millennials are one of the most studied generations to date, research around their banking preferences and attitudes is limited.”

With today’s brands at the mercy of their customers, segmented marketing has never been more crucial. Mass marketing efforts of the past don’t cut it with the modern consumer who expects to be targeted specifically and personally. In order to boost customer engagement and retention, brands must segment their markets and target these segments specifically according to their wants, attitudes and preferences.

SDL identified five banking personas among Millennials:

  1. Convenience Seekers (49 per cent): These laidback Millennials prioritise convenience over anything else, preferring easy-to-access banking products and processes. They are willing to spend money – applying for credit cards, mortgages and loans – to satisfy their wants and needs. Convenience seekers share their frustration towards complicated banking processes, online systems and mobile apps.
  2. Cost Savers (24 per cent): These Millennials are thrifty with their money, seeking to save on low interest rates and avoid banking fees. They are savvy about banking products and services, and share their opinions and experiences with peers. Cost savers discuss the best interest offers and share tips on improving bad credit scores.
  3. Security Seekers (14 per cent): These individuals are highly conscious about privacy, having either experienced or heard about credit fraud, scams and the like. Security seekers share tips with peers on the most secure loan options, how to avoid credit theft from online websites and how to keep their accounts private from parents and guardians.
  4. Starters with Big Bucks (7 per cent): A group of young start-up business people with big visions in mind. Starters with big bucks have little to no experience with loan applications but are willing to pay interest. They are anxious and curious but optimistic about the future.
  5. Newbies with Budgets (6 per cent): Newbies have a lack of understanding about banking services, a minimal budget and low-to-no credit score. These young people have the potential to become loyal life-long customers if banks can attract them now. When discussing banking with peers, newbies share how to minimise banking fees and transaction rates.

Millennials are the demographic cohort following Generation X. The exact boundaries delineating the generation vary according to opinion, however the term is generally considered to apply to individuals born after 1979 and before 2000. Millennials grew up in a time of rapid technological development and are social media natives.

They differ from older generations in that they are constantly connected via social channels, generally less cynical of institutions and believe in change. However, similar to generations before them, they prioritise family values, aspire to be debt-free and recognise the value in long-term planning.