It’s not breaking news that technology is changing the way people bank. And while we know that Millennials are seeking rewards and top-notch products, new research shows that their older counterparts are also actively seeking out that experience.
In a recent Nielsen study, 61% of Millennials who would consider moving their money to a new financial institution would consider a local community bank or credit union. And as for Gen X? Well, 76% of those 35-44 and 79% of those 45-54 said the same thing.
So what gets them to break up with their bank? Better or more rewards would get 83% of Millennials to switch institutions. And 74% of 35-44 year olds and 72% of 45-54 year olds agreed.
But technology is important too. If a community bank offered mobile services (like an app or mobile check deposit), both generations would be more open to switching. When it comes to online banking, the majority of Gen X and Gen Y said they would only consider an institution that offered the service as well as in-branch.
By providing attractive rewards and digital banking services, you’re not just catering to Millennials, but to everyone. These numbers show that Gen X is even more likely to switch institutions than Millennials (for the exact same reasons). Making these offerings a top priority for your institution could have a big impact.
Consumers have come to expect a comprehensive digital experience from your business. Just providing online banking isn’t enough. The services need to be good to compete with the technology megabanks are offering.
Think about this: dealing with cable/internet providers is always a hassle. Since they all have similar products, most people are going to pick the provider that offers the best service experience. Your online and mobile experiences need to be up to par with other top institutions in your industry to attract and retain all generations.
According to a Fiserv study published in early 2016 (conducted over a 12-month span in 2014 and 2015), mobile users at credit unions generate 36% more revenue than in-branch-only users. At banks, mobile users generated 72% higher revenue than in-branch-only customers.
So if your institution doesn’t provide these digital services, there’s no better time to start than now. Kasasa accounts offer the rewards Millennials and Gen X want, and our FIRSTBranch sites are built to provide the online experience that today’s consumers are also searching for.
Contact us to learn more about delivering the rewards and online experience that will attract profitable Millennials and Gen X-ers who are looking to make the switch.
