Speed and convenience. These are the two motivations driving financial services agencies interested in snagging business from Millennials and Generation Z. Studies show firms need to adapt their products to mobile platforms and provide things like chat services. In general, move away from the branch model and embrace a more digital existence where financial services can be accessed from the seat of a couch.
Joel Richardson, a client and digital services expert from Oklahoma, told Forbes that firms must become “disruptors” if they want to tap into these markets. This means converting services normally provided face to face to a digital platform, like Apple has done. They offer new financial realities with products including the Apple Wallet that reshape how the young deal with transactions.
Financial firms can exploit younger generations’ capacity to handle facts and figures. These are embedded in their research lifestyle that entails digital platforms that can handle an influx of information. In addition, financial services can exploit social media. Younger generations use these networks to not only see what’s going on with friends and family but also to experience the highs and lows life has to offer. Social platforms are used to express ideas and sorrows — the deep stuff. With that in mind, financial service agencies looking to tap into these markets need to show their authentic side and gain confidence with transparency and not flashy marketing.
Yeah but Is It Worth It?
According to a study done by the company Corporate Insight (CI), Millennials are about 80 million strong in the U.S. and have a spending power of $200 billion. Even if their financial might may not seem monstrous now, these are the aging generations of the future that financial firms, like Highland Financial, need to engage. Mobile is the way to do this, according to the CI study.
It finds that 69 percent of Millennials logged into their financial accounts in the past 12 months. It also says 51 percent of this demographic views a brokerage firm’s “mobile capabilities” as very or extremely important. Among Generation Xer’s, 41 percent accessed accounts on a mobile device while 30 percent of Baby Boomer did.
The study says financial firms are adjusting to this mobile-first approach. Doing so lets them tap into a defining feature that separates younger generations from their counterparts. In fact, CI says the dominance of mobile is growing as more and more younger generations access the web using their mobile phones versus a logging on using a laptop.
More Accounts Started on Mobile Devices
The study highlights a study by the account-opening technology vendor Andrea. There was 800 percent increase in the number of Millennials that used mobile devices to open financially related accounts since 2000, it says. The study also revealed that those opening accounts on mobile devices tended to have more money than the average account holder.
Another feature of this connected generation is the influence of social media on financial decisions. This demographic looks to outfits with useful messaging that talks directly to them about issues that matter to them. Thus, a video about strategies to save for a first home or get out of college debt does better than an ad that discusses the virtues of saving for retirement. Focuson the short-term is better than lecturing about the future.