THE GAP BETWEEN MILLENNIALS AND BANKS

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THE GAP BETWEEN MILLENNIALS AND BANKS

Millennials – the generation of people born between the early 1980s and 2000[1]– are gaining more and more importance in the banking and payments industry.

This generation grew up within the rapid evolution of digital technologies and the massive adoption of mobile devices, which created a gap in what Millennials expect from banks, and what banks are actually offering them.

What are the main features that banks should consider when thinking of their Millennial clients?

The dream bank that Millennials want

Here are five of the most important features strongly demanded by Millennials:

Customer-centricity

Millennials want to feel valued as customers and part of the business. Banks/PSPs should improve the whole banking business in customer-centric way.

It seems that banks are not one of the favourite subjects of Millennials, nevertheless we have seen how MyBank can help them by leveraging on its customer-centric approach: MyBank is not invasive, it comes into the picture when you need it.

By combining the traditional and secure user experience of the online banking with the innovation of real-time payment processing, MyBank is shifting the online banking from a “bank-centric” solution to a “customer-centric” solution, where the bank/ PSPs reaches the user when he needs it.[2]

Immediate support and operations

Millennials are always connected; therefore, they prefer banks and services that offer 24/7/365 customer support and continuous operability.

MyBank e-payments allow to process online payments at any day of the year even on-the-go, and provide both debtor and seller with an immediate confirmation of payment execution: this means that the product or service can be delivered or provided immediately.

On the top of that, MyBank supports the Instants Payments as well providing not only the immediate information but also the Instant transfer of the funds.

Mobile banking apps and mobile payments

Mobile adoption and mobile payments will keep on growing in the next years, but not all the banks have already adapted to the mobile trends.

According to a PwC study, ‘only 25% of banking products are available online and usually it’s not as easy to find a mobile banking app, and the app itself is far from being perfect.’[3]

But pay attention: surprisingly the mobile apps are not for all the millennials[4]. Millennials (at 26%) are far more likely to use a bank’s mobile application than Generation X (12%) or Boomers (3%). However, when looking at the preferred way that Millennials want to transact with their bank, the website plays a more important role. Interestingly, 30% of Millennials with smartphones don’t use any banking apps (from their bank, or 3rd-party banking apps). Of those that don’t use banking apps, 45% said they prefer not to conduct banking-related activities on their mobile device.

The main requested a loved feature for millennials? Peer-2-Peer payments[5].

MyBank provides banks and their merchant clients with a solution that supports both payments processed from mobile sites and app-to-app transactions.[6]

Quick refunds

According to the 2018 Pitney Bowes Global Ecommerce Study, Millennials would like to receive any refund in a day or less, possibly basing expectations on the speed of refunds set by marketplaces[7]. And they are not ready to wait more than 4 days.

The automatic reconciliation inherent in MyBank is an efficient tool for banks merchants and retailers clients to answer to the Millennial expectation of fast refunds while managing in a cost-effective and performing manner the whole reconciliation process.

 Conclusions

The generation of Millennials represents both a challenge and a potential of innovation for any PSPs.

MyBank is the tool through which any bank/PSP can efficiently meet Millennial demands and to stay competitive and relevant in the coming years.

1 Feb 2019

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