Millennials are 2.5 times more likely to switch their bank compared to Baby Boomers. Should banks be worried? Can customer loyalty be restored? Where do banks go wrong and lose their valuable millennial customers?
Millennials wish for minimum fuss in their banking activities. They have high expectations on technology to make things simpler for them. The sheer size of this segment in the Indian market makes it difficult for banks to give it a miss. At 440 million and growing, millennials currently make up 46% of the workforce and 70% of the total household income.
A sea of change is needed by the banks in the way they conduct their business to focus more on solutions which are not just simplified but also engaging. It may also require the banks to be present on non-banking platforms such as social media, e-commerce, entertainment, etc. Following elements form the basic blocks of millennial banking:
- Financial Advisory
A combination of agile and innovative technologies is need of the hour to keep customers engaged and loyal. Artificial intelligence, augmented reality, omni-channel solutions and hyper-personalisation are few aspects which must be considered by the banks willing to serve millennials.
To be relevant and achieve traction, personalization becomes the go-to element. One such way to engage customers is a contextual push notification based on behaviour & financial activity. The number of ‘wow’ moments delivered to the customer is directly proportional to the loyalty a bank receives.
Big brands are already banking on the above mentioned basic blocks to engage with their customers. By providing seamless digital experience across all customer touch points, banks can assure customer loyalty and win the hearts of customers. However, intimate customer understanding over a period of time plays a crucial role in sustaining the trust of millennials.
Millennials expect instant gratification and to serve the same we have chatbots backed by artificial intelligence, intelligent voice assistant and more. Increasing debt and diminishing savings trend among millennials also emphasises on the need for exclusive financial advisory.
About Market Simplified: Market Simplified is a thought leader in revolutionising and digitising products for financial institutions by continuously innovating and simplifying finance. We empower our customers with a cutting-edge digital experience that is highly personalised and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning, and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India, and many others across the globe.
About the author: Deepti is currently taking care of Inside Sales at Market Simplified India Ltd. She is an MBA graduate with specialisation in Marketing and has a flair for marketing & branding assignments. She loves cooking, travelling and spends time watching Netflix series.