Financial Services for the Millennial Customer
Authored by: David Horton, Head of Innovation
Rethinking global banking for the debt-heavy, group-thinking millennial generation
If you knew within the next four years that more than fifty percent of your most profitable customers were going to demand a different set of products and services, would you start to change your business now?
This is precisely the dilemma confronting the bulk of the world’s financial institutions, who have never faced a situation in which both technology and changing customer behavior are evolving and converging at such a rapid pace. Today, the millennial generation, people aged 16 – 26, are steering spending and innovation on everything from mobile and voice commerce to politics. It is no surprise, that a large amount of the $19 billion venture capital being invested into Fintech startups is aimed at millennials. Never has it been so important for the incumbent goliaths of the financial industry to rethink their business operations and innovation strategies with the millennial customer in mind.
The Millennial’s Hierarchy of Needs
Born between 1981 and 2000, millennials have a distinct set of characteristics defining their choices. While not true of all, many millennials feel they are vital to the planet’s future and to their parents’ sense of purpose. They perceive that they exist to solve world problems that previous generations have failed to solve, and whilst they may claim they want privacy, the rise and rise of social media and the current Pokémon Go’ phenomenon indicates that they trust their parents, friends and peers most and thrive among social groups over individual situations.