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3 Words to Win Millennials: Better. Mobile. Banking.

Sep 30, 2014 6:35:00 PM

We’ve said it before and it bears repeating: Millennials like mobile banking. They’re comfortable with it, they like the convenience it provides, and they’re willing to switch banks to get the mobile experience they’re after.

These points have been proven true time and again in a series of recent surveys. One such survey, commissioned by Mitek Systems, found that typical millennials are in constant connection with their smartphones.

According to the survey:

  • 87% of millennials say their smartphone never leaves their side, night or day
  • 78% say they spend more than two hours every day using their smartphone
  • 68% prefer to use a mobile device over a laptop or desktop

In addition, the survey found that millennials want a solid mobile banking experience:

  • 85% say they wish they could do banking and shopping on their smartphones
  • 81% say it’s either very important (44%) or somewhat important (37%) that banks have a high quality mobile app designed for smart devices

Each of these data points jibes with a chart that illustrates how much 18- to-34-year-olds prefer mobile banking:

The fact is, this trend won't ever reverse. Human beings typically only move toward greater convenience, and when it comes down to it, mobile is the most convenient channel available for a range of banking activities.

It’s becoming increasingly clear that the old methods of winning market share in the banking industry no longer work. Fundamental value propositions such as privacy and security are a given for account holders. If you provide those things, you’re not special. You’re standard.

Ross Martin, EVP at Viacom, discovered just how true this is after conducting a 10,000-person study of millennials and their banking habits. Martin said, “Privacy, security — those are fundamental issues. When banks were marketing to Boomers and to Gen X, those were things you could win on. Now they’re table stakes. You can’t win on safety, security, privacy, or dependability in the 21st century. You have to compete on a deeper understanding of product development and customer service.”

At its core, offering better mobile banking is all about delivering better customer service for millennials. In fact, a recent TD Bank survey found that millennials:

  • Leave institutions that don’t meet their mobile banking needs
  • Reject solutions that are fragmented and inconsistent across different devices
  • Accept personalized offers for banking services that appeal to them
  • Use customizable budgeting tools

In other words, millennials have extremely high mobile banking expectations, and they’re willing to go wherever those expectations can be met. If your institution is struggling to win millennials, one good place to start is to find partners that can help you offer better mobile banking.

It’s the most certain way to win the next generation of account holders.

Jon Ogden

Written by Jon Ogden

Jon Ogden is the Director of Content Marketing at MX.

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