The article captures several of the undercurrents at play in the retail financial institution sector, but as sometimes happens, the drive of the change is being attributed to a specific generation of consumers, rather than the broader uptake of technology enabled interaction in the services marketplace.
Now that millennials are coming into their own regional banks are going to have to work hard to attract them. The oldest are turning 40 in a few years and they want homes, financial planning, business loans and more. Right now 80% of millennials pick the top 3 big banks and as regional bank clients become older, they need to do more to attract them. The industry calls them HENRYs. [High Earnings Not Rich Yet]
Mercator Advisory Group agrees FIs need to increase their on flexibility and uptake innovations developed to manage and finances. Where we split is that this is the sole purview of the millennial generation. Many of the characteristics attributed to the millennial generation are also exhibited by other generations just somewhat lesser degree. The imperative to improve overall access and engagement is true for all consumer segments FIs serve. That is to say, the ease of use of most recent technologically enabled platforms in transacting with a FI has made it a safe and effective conduct business across the age spectrum. People just want it to work.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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