There’s a big hole in the area of banking services specifically aimed toward millennials, and this is a great opportunity for innovation. Read on or see our full white paper, Banks and Millennials, for more information about how to reach this target group.
Millennials are the first generation of digital natives, that is, the first to have had internet access since their formative years. This fact (as well as the socioeconomic conditions of recent decades) has shaped the way they live and work, and how they relate to and what they expect from the banking industry.
They’re more inclined to trust individual and collective efforts rather than large corporations. For example, instead of relying on traditional sources like banks, crowdfunding has enabled entrepreneurs to grow their businesses by raising capital from online sources.
With millennials at the forefront, the idea of a service and sharing economy has become more and more of a reality.
Daniel Sjöblom, Director of Digital Design, Veryday
There are also new entrants in the financial services market that many millennials don’t hesitate to use. Apple, Google, Facebook, Amazon and other online businesses are entering the sector in entirely new ways and may become major competition for traditional banks in the future – mainly with the way they manage services. Banks that still work in a rather conservative manner are being overtaken by digital services like Tink and Klarna in Sweden and iZettle and PayPal worldwide.
Large conventional banks need new ideas and initiatives within the space to appeal to millennials, a target group that still sees them as slow moving and impersonal. Banks must become more relevant and attractive in the coming years by listening to, reinventing and tailoring their offerings to millennials. Because things will inevitably change, the question in the banking industry is who will drive that change and who will benefit from it?
Read our white paper, Banks and Millennials, to find out more about this target group’s relationship to money, the importance of being trustworthy, and insights from our study on how young people think banks will appear and behave in the future.