The Bankwatch

Tracking the consumer evolution of financial services

Catalysts for Change: The Implications of Gen Y Consumers for Banks | Deloitte

Gen Y as a generation is consequently distinctive enough to merit specific consideration from Banks.  I have talked here before about building online banking and services specifically for Gen Y.  I think that way because theirs is the next demographic group on the horizon, with significant spending capability.  “Their annual spending is already projected to be $2.45 trillion by 2015”

Unless you have multiple online banking sites, you have left with the choice of ‘dumbing it down’ to the lowest common denominator, or targeting a niche, and making the working assumption that other demographic segments are quite willing to accept new things because ‘thats how internet is.  I would further support that theory by suggesting that Baby boomers have characteristics that are not dissimilar to some of those of GenY so risk of alienating boomers is low.

Finally, any strategy that does not have GenY front and centre is a non-starter, when the long term revenue impact is considered.

Deloitte LLP for the full report

  • Gen Y demands a fresh approach to marketing, channel management and product strategy. Banks must rethink their traditional strategies to capture this important segment.
  • Gen Y is a catalyst for change. Success with Gen Y can significantly impact a bank’s success with other generations.
  • Gen Y-ers are multichannel buyers. Banks need to provide an integrated channel experience for bank transactions if they want to retain those customers longer term.

Written by Colin Henderson

April 17, 2008 at 09:40

Posted in Uncategorized

2 Responses

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  1. […] of the Gen Y in mind is a complete non-starter when it comes to long term impact. To read more click here. Posted by icontract Filed in […]

  2. […] There should be no doubt for any banker that their brand and service is now defined by their internet capabilities. It is time to accept and allow that plan to drive investment priorities. Time to re-visit post on Charlenes assessment from 2006 and Deloittes earlier this year. […]

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