How millennials are shaping the bank of the future
As millennials enter their prime earning years, their preferences are dictating change
Millennials are about to enter their prime earning years, with an estimated net worth between $19 and $24 trillion. They consider online platforms and technology such an important aspect of their financial lives that 57% would switch banks if offered a technologically superior experience.
As a group, they’re famous for being likely to manage their finances with their mobile phones or desktops, with little to no human interaction.
It’s critical that banks and other financial institutions transform to meet the demand. Offerings like 24/7 omnichannel services are no longer optional, they’re table stakes – especially considering that millennials will surpass baby boomers as the largest adult demographic by 2020.
The bank of the future
Future solutions include automated self-service, digital signage, kiosks, video engagement (real-time and on demand), and mobile apps with location awareness. Further support on the bank’s side will come from enhanced analytics, customer relationship management (CRM) integration, personalized messaging, and other digital technologies aimed at serving customers wherever and however they prefer.
According to a recent IDG-AT&T study, both business and IT leaders in the financial services agree that the right technology can drive the necessary digital experience. That’s why 46% of banks plan to make major upgrades in the next year. The challenge is finding the right solutions while maintaining performance improvements, both for customers and inside the bank.
Integrating efficiency and security
The millennial generation’s unprecedented buying power combined with their impatience with legacy systems makes digital transformation a pressing priority. Customer-facing offerings like mobile apps can drive back-office innovation in the areas of mobility, data analytics, security, and network technology. It all comes down to the imperative to provide access to bank accounts securely from nearly anywhere, any time.
However, with new technologies come new challenges. Security threats increase with the number of channels, making it difficult to keep risk assessments current and to reassure customers that their money and sensitive data are safe. Marketing enhanced security, however, can increase customer confidence and brand loyalty.
Business and IT leaders that responded to the survey also agree on the challenges of providing a consistent customer experience both online and in physical locations. Data analytics can help by giving banks insight into their customer’s preferences and habits. These, in turn, can help further personalize the customer experience and help forecast when and where future services should be expanded and upgraded.
Software-defined networks with scalable bandwidth, hyper-fast mobility, ATM backup, and deep analytics help provide the seamless digital to in-branch, back to digital experience that millennials want to reward.
AT&T is a leading provider of integrated solutions for business, powered by the global network with more secure connections than any other provider in North America. To learn more about digital transformation in the finance industry, visit our Financial Services solutions page.