Bankers, you’re forgiven if you’re a little confused on what to do with millennials given the seemingly endless — and often conflicting — research released about the younger generation’s attitude toward financial institutions.
As consumers, Millennials’ relationships with brands and how they choose to do business has been truly perplexing to most. In no area is this better highlighted than in the banking space. For this hyper-connected and tech-savvy crowd, finance is more synonymous with crowdfunding, virtual currencies, and online payment platforms than it is with the brick building with a drive-thru ATM on the corner.
This generation has unique needs, and so far, most banks seems to be missing the mark. According to a study by Viacom Media, banking, as an industry, runs the highest risk for disruption. 53% of the Millennials they surveyed said they didn’t think their bank offered anything different than a competing bank. 71% said they would rather visit the dentist than hear what banks have to say. 73% would rather handle their financial services needs with Google, Amazon, Apple, PayPal or Square than from their own nationwide bank. Ouch!
So how should financial services providers and institutions respond?
Give Millennials Choices. The tech-savviest of consumers, this is a generation raised on choices. They have never been tethered to a single form of delivery: cable (Netflix), taxis (Uber), books (Kindle), radio (Pandora, Spotify). Banks would be wise to take a page from other industries and disrupt from within. Give Millennials choices in regards to how they bank, with which banker, and allow them to use the platform of their choice. More often than not, that platform will be mobile.
Build around mobile.
When it comes to banking, more than 70% of Millennials have used mobile services within the last 12 months, and about 94% of Millennials are active users of online banking. Compound this with the fact that over 80% of Millennials have smartphones, and you can clearly see a smart trend emerge. Mobile banking and applications which allow Millennials to manage their portfolios are a certainty.
From financial payment flows to mobile applications, business processes of your company are supported by different IT systems and applications, both internally and externally. Mostly, multiple systems are involved in a process, and they typically interact with each other using Application Programming Interfaces (APIs). In general, APIs provide selected system features in real time for usage by other applications.
With wide support for different API technologies and preconfigured building blocks, Managed File Transfer and Business-to-Business integration (B2B), the SEEBURGER Business Integration Suite (BIS) supports your bank, financial service provider or financial institution with the realization of diverse real time internal and external integration scenarios; on-premise, hybrid or fully cloud. By using the right integration strategy, you create digital value.
Learn how SEEBURGER can educate you on the digital transformation and enable your bank or financial institution to enter the Millennial Digital Revolution: