The Bankwatch

Tracking the consumer evolution of financial services

Young Adults Bank by Web and Phone

This is obvious stuff, but once in a while its nice to read. 

Young Adults Bank by Web and Phone – eMarketer

Dan Schatt of Celent said, “GenM is the first generation to grow up online and to grow up without the need for a landline phone. Given the ubiquity of mobile handset adoption and Internet usage among college students, banks that want to tap into this demographic will have to invest heavily in the mobile and Web channels, the number one preferred way for this segment to communicate and obtain information about financial providers.”

Some less obvious conclusions from this graphic:

  1. People with children prefer self serviceT
  2. Telephone is a last resort

Written by Colin Henderson

July 17, 2007 at 23:55

Posted in Online Banking

3 Responses

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  1. Hi Colin –

    We just completed a report that we are releasing soon about Gen Y banking behaviors and attitudes and found that these consumers still value “traditional channels” at rates equal or even higher to online service capabilities. Despite the fact that these consumers are definitely tech and web-oriented, I think it’s important not to dismiss the other channels out of hand.

    Jean Garascia

    July 18, 2007 at 12:35

  2. Thanks Jean …. and to support that point I note that the even amongst 18-34’s their use of online does not approach the levels of use that over 55 display for Branches.

    However, we have to be careful (imho) not to to suggest to planners that equality of channels is required. I see it more that the new generation expect everything online, with the other channels as a back up, and often because something is not available online, so they need the security blanket if you will. Preference for GenX/Y and the internet generation, will always be onine first, provided its trustable and capable.


    July 18, 2007 at 13:07

  3. Absolutely, Colin. Until the web can do everything (and by that I mean everything from Wesabe-type PFM to complete online account opening, etc.), the other channels will be necessary. That’s why I’m always a bit wary when I see recommendations that appear to promote the online channel exclusively.
    Thanks again for bringing up great viewpoints!

    Jean Garascia

    July 19, 2007 at 11:23

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