The newspaper supplement Raconteur this month published an article on the changing banking experience for the new generation. The article discusses the struggle of established banks to win back the trust of customers with an increase in banking alternatives and argues that traditional financial services companies are being challenged like never before and will need to become far more customer-centric to survive when the millennial generation will become the largest consumer group over the next few years.
Mobile Banking
According to research carried out by Goldman Sachs this year, one-third of the millennial generation believes that they won’t need a bank in five years, using alternative banking and financial solutions instead. Half of all millennials think that by 2020, they will be living a completely cashless life. Millennials are also far more likely than any other demographic to want to use mobile banking and to leave their primary bank if that bank doesn’t meet their needs. According to the American fintech company Money Summit, 74% of millennials say that mobile banking is very important to them and 85% of millennials say they wish they could bank and shop on their smartphones.
When banks match up the way customers use their personal technology to the service they provide, this can enhance mutual interaction. People don’t want banks to provide them with financial services that are dull and boring. They want a quick and easy experience that instantly meets their needs.
Technology can provide many opportunities to play into these changing needs of their customers. With the rising number of smartphone functions, banks are now starting to offer services such as remote cheque depositing – allowing customers to take a picture of a cheque – and online account opening – by uploading personal documents. News apps and developments in wearable technology further add to providing a suitable banking service to the new generations.
Wearable Technology
Wearable technology is expected to grow rapidly over the next few years, making an impact on a range of sectors; from entertainment to manufacturing and banking. The quick development and the opportunities of wearable technology and its use within the financial industry is exciting, but innovations such as the recently launched ‘Apple Pay’ can only be used by customers who have access to a bank account.
Financial Inclusion
Because many temporary workers in the UK are unbanked or underbanked, it should be pointed out that there are alternative banking solutions available. One such solution is Suits Me®; a membership scheme that offers all its members a Mastercard® debit card that can be used in stores, online and over the phone, as well as to use for online banking-like facilities.
If you would like to know more about the Suits Me® card or would like to know if your recruitment agency offers a Suits Me® membership, then visit www.suitsmecard.com or contact us at hello@suitsmecard.com.
