First published 2015
Before coming to the main topic that we are going to talk about in detail let’s just know who the Millennials are?
Millennials are the demographic cohort of United States of America which make the 2/3rd of the population. There is not much information available about them, no date as to when the generation starts and ends. Early 1980s to the early 2000s are the birth that is used by the researchers and commentators.
Also Read: Why Hiring A Millennial Isn’t That Bad
Understanding who they are now, let’s talk about how these Millennials have affected the banks. There were many stories in the newspaper regarding the millennials such as rejection of home ownership by the Millennials; Millennials are no longer buying bad stuff and, destroying businesses. Millennials are changing the workplace to be, more friendly to “millennial values”.
The banks aren’t ignorant of the fact that millennial are their tough competitors. Millennials will love if the banking industry is destroyed completely.
The head honcho of JPMorgan Chase, Jamie Dimon, has recently told that hundreds of startups are coming your way that will be providing substitutes to traditional banking services.
Although for now Banks are here to stay. We cannot make a statement as the startups by the millennials will be adopted by many, and this will affect the banks in many ways.
There are the different financial goals for everyone- the common people, the bank and also the millennial. For individuals, the goal is to have freedom through car and home ownership along with an increasing retirement account and safety of pension.
For banks, the goal is to cater these desires through home-equity loans, retirement and investment advisors, and a customer service at local branches.
For Millennials life goals are entirely different- their financial institutions still have to devise a plan that will satisfy their soul.
You would be amazed to know that U.S leads in student debt in the country and no innovation have been done in student loan lending by the banks.
But Companies like Earnest, Common Bond and SoFi, whose startups have shown some innovation. The bank just says you would have to open an account as we would refinance your student loan and later we will repay you at a lower rate.
The banks should improve on many grounds; first is advising. Secondly, it should have newer models of credit scores to help young workers find loans. Many opportunities have been lost by the Bank to engage with millennials.
It really would have made a difference.
We totally want to be in contact with the bank, but we don’t like the talking part that’s why automated investment platforms are popular among us, this being one reason. Other is these platforms have lower balanced risks and fees.
We want that everything is made easy for us, and everything could be done on our phone. Every time we want some help we just contact the manager and our problem is solved in an instant and would want services that are as per our requirement. Banks have reduced their work by moving banking functions online or also installing ATMs.
Also Read: 10 Economic Facts about Millennials
One reason the bank would fail would be not being able to bring millennials into the fold and other would be failing to innovate for their customers.
Simplicity is Golden. All we want is simplicity in the system. We don’t want to stand in the lines and pay the bank fee. All we want is that all our work is done easily and without any hindrance. We would like if some innovations are made by the Bank to make their and at the same time our work easier.