Millennials vs. Boomers: A Banking Divide

It’s no secret that the millennial generation is adopting technology at rate that surpasses the Baby Boomers, leaving a technology gap in our society. Whether it’s the difference between texting and calling or Facebook messaging and e-mailing, millennials are among the first to try new technologies. The banking industry is no different. In order for financial institutions to reach the millennial generation, they need to embrace new technologies to retain clients who are just starting out on their financial journey.

James Van Dyke of Javelin Research has long been an advocate of banks recognizing the difference in behaviors between the younger and older generations. In a recent blog post, he wrote:

“We all know the examples of how millenials are different in terms of everyday communication with other people, but are we grasping how this translates to payments, online financial services, security or mobile? I see an unmet need, and future potential changes such as reduced interchange for debit the implications could portend even greater significance.”

Additionally, Van Dyke referenced a November survey where more than 5,000 US consumer’s payment preferences that asked respondents what value they found in alerts (e-mail or text/SMS). After honing in on this question, he wrote:

“What the data told me is that younger people are significantly more likely to value particular electronic updates from their bank that fall within the ‘everyday’ category ‘b’, while older Americans place significantly higher value in just the opposite “a” or security updates.”

Are you catering to the needs of millennials? Let us know in the comments section below.

Written by Staff