Millennial opportunities for local financial services organizations
There’s a common misconception millenials don’t want or care about having a local bank…they can do everything they need online. However, the data suggests a different story. In a study released by the Harris Poll in the beginning of 2017 roughly 1/3 of Gen-Xers and Baby Boomers stated that a bank’s website was their primary channel for transactions. Yet nearly 14% of millennials still rely on a teller as their primary channel.
Millennials are mobile
Not surprisingly millennials most preferred method was mobile apps – basically swapping their preference with the Gen X audience, but we still see nearly 20% with a preference for the website.
Are tellers losing their importance?
While the data shows a very clear division in tellers as the primary channel based on generation, there’s still an important place for branches and tellers among the younger audiences. According to a study completed by ATT in April 2017, Millennials prefer local businesses:
Location, Location, Location
‘Staying local’ is a big motivating factor to ‘shop small’ for all respondents, with 48% saying they want to support local employment and 47% saying they want to keep money local as top reasons to shop at a small business.
Supporting local employment is a top motivator for millennials to shop at a small business, along with convenience.
Opportunity for regional banks/credit unions
There’s a significant opportunity for local banking to meet the needs and desires of the younger audiences. With the right marketing mix (and technology), local financial institutions are primed for growth.
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