Millennials Are Destroying Banks, And It’s The Banks’ Fault

by Edward O'Brien 0

” Millennials are rejecting home ownership across the land. Millennials aren’t buying crap anymore, destroying businesses that, well, sell crap. Millennials are changing the workplace to be, I kid you not, more friendly to “millennial values.” Millennials this, millennials that, and those are just some of the stories published this week on this critical, hot-button issue. Frankly, as a millennial, I’d like to copyright the term and earn a royalty every time it is uttered. Like that Happy Birthday song.”

“I hate this generational garbage as much as the next person, but there is a kernel of truth that people born in the same years face similar contexts in their lives. My generation witnessed 9/11 and the wars in Afghanistan and Iraq at a very formative age, and we were hit with the global financial crisis right as we were expected to get started in the workforce. That colors your worldview.
Few industries will face a greater struggle targeting these new consumers than banks, who seem wholly unprepared with what to do with us. Indeed, if ever there was a dark evil in the world that millennials as a whole would probably like to see completely destroyed like San Francisco in San Andreas, it is the banking industry.”

“The banks aren’t ignorant. Jamie Dimon, the head honcho of JPMorgan Chase, told shareholders this year that “Silicon Valley is coming” with “hundreds of startups” providing alternatives to traditional banking services.”

“Banks are here to stay – for now. It is clear though that startups, often led by millennials and ushering in millennials as early adopters, are coming for the heart of the banking industry. How it responds will determine who owns the capital of the most important capitalist country in the world.”

Today’s banks and credit unions are becoming increasingly aware of the need to understand the needs of all their customers and members, no matter the age or knowledge of the latest technology. In addition to trying to keep up with the latest mobile innovations, many are trying to maneuver around customer wants and various legal and compliance requirements. Consequently, FIs need to fully understand their markets and the legal and business requirements to effectively serve their clients’ needs.

Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group

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