In this blog, I will continue with my research on the target audience( looking more specifically into the needs of my target audience in the banking sector), in order to better understand what are the current problem of today’s banking systems and how we can improve on that. (What problems we are trying to solve)  The main focus/outcome of this blog will be deciding the 5 core qualities of my bank brand based on my research so far.

 

 

Continued research and understanding the demands of today’s banking

In the last blog, we have looked into and summarised the 4 common traits for the younger generation;

1. very tech-savvy
2. on average in more debt and things are getting more expensive compared to the last generation
3. delaying a life big choices, defying the normal
4. more environmentally and socially aware

 

Now I wanted to look more specifically into what my target age group would want from their banks. To do so I read a few online articles, and I will link the ones I found most useful down below;

What Young Millennials Want From Banks – WSJ

Four Ways Banks Can Cater to Generational Trends | Bank Director

Research shows that over half of Gen Z and Millennial’s banking relationships are at risk | Banking Dive

Centennials, the generation that knows what it wants from a bank

5 Things Banks Need to Know About Gen Z – SLD

After reading the articles, I have got a brief overview of what the current young generation would expect from their banks. I was surprised at how my previous research findings link closely with the articles I read.

Below, I will quickly summarise my findings;

 

1. Going digital for convenience

While there is no doubt that digital is the future, there are few existing banks that offer a seemly good digital experience. The way people uses money is changing, with the younger generation keeping less cash on hand and opting for digital payment; investing in cryptocurrencies and other savings and investment apps. The young generation wants convenience and simplicity. Seamless money transactions through mobile and online are important as they allow the user to take action whenever, wherever.

 

2. Making things more tailored and personal, understanding that is a huge range of possible lifestyles 

A study found that those under 30 are most interested in personalized help when choosing a bank, and this extends to investment and mortgage help also.

“When it comes to their biggest life purchases, Millennials and Gen Z want to hear from their banks—and often. The longer and more personally meaningful the loan is, the higher the levels of interaction, transparency, and access desired.” – Deloitte 

” Traditionally, cashback rewards have been the gold standard for attracting and keeping customers. Still, today’s younger customers want “in the moment” offers and personalization and likely find the redemption of cash rewards too tedious. One specific example that ranked top of mind as “most valuable” was personalized budgeting advice……According to the data, top draws for today’s young banking customers are personalized tools, calculators, and content to help them make the most of their savings and reach their goals, such as buying a home or a car, which naturally sets up a future offer of vital credit.” – BankingDive

Banks also need to understand that over the years the wants and needs of their consumers have changed. According to Bloomberg, 42% of millennials own homes at age 30 vs 48% of Generation X vs 51% of baby boomers at the same age. Too many banks seem to offer and single solution to all. Banks need to see that there is now vast opportunities and many paths a young person can take, can factor in these distinctions into their offering to their advice personalised and keep consumers engaged.

An example where a bank has understood the personalised need of the younger generation is Santander, they offer on their student debit card interest-free arranged overdraft of £1,500 in years 1-3, £1,800 in year 4 and £2,000 if you stay on to year 5. They understood that students are often in a pinch, and interest-free overdrafts such as these help immensely.

3. Form long-term trust, help the consumers reach their goal

“Younger consumers were clear that one thing they want most is a bank that is invested in helping them reach their goals. Savings accounts are still the anchors of banking and the key to driving long-term, multi-account customer relationships.” – BankingDrive

Banks need the ability to address a pain point and understand the life-need journey from a young person’s point of view, remove complications and provide solutions. The most important solutions are those that can alleviate friction or jump a hurdle.

“Be with customers along the way and help them focus on the goal by creating little wins along the path to its achievement.” – Deloitte

 

4. Providing transparency and being accountable

A while ago, a bank providing transparency was good morals, but now it’s an obligated must. The younger generation is more educated and financially aware than ever before. With the rise of the internet and social media, along comes peer reviews and ratings, there is nowhere to hide.

“Gen Z are straight shooters who don’t like fine print or sales pitches. Banks need to take transparency on as a critical mission. If Gen Z thinks they’ve been duped, they will share that experience widely on their social networks. Given how much they credit peer reviews, brands need to get ahead by removing choice architecture that favors the brand over the consumer and being upfront about… well, everything…….They want to have frank conversations about matters such as money without shame or judgement. Banks are not viewed as transparent and honest. A new approach that puts all the cards on the table may seem like a shock, but it will be necessary if financial brands want Gen Z to stay with them as they get older.” – Sld

 

5. Being socially aware, especially for the environment

I don’t think this section needs much explaining as climate action has been taken place around the world. Though climate awareness isn’t just a young person’s thing, it’s one of the most important considerations on their list. A good example is the young Greta Thunberg and her mission for the change climate policy around the world.

Banks of the future will need to consider the big picture and have a transparent concern and plan for reducing their carbon footprint.

Other important aspects of being socially aware include being aware of gender differences and striving for better diversity.

Setting values

From what  I have researched, here is my top 5 value for my bank;

• Integrity and transparency 
• Accountability 
• Customer-first 
• Embracing personal differences 
• Providing opportunities