Gen Y: The Digital Generation

The Intuit 2020 Report, The Future of Financial Services, predicts that in the next 10 years Gen Y will transition from young carefree spenders to an important part of the financial services customer segment. By 2020, a majority of this group will be in their early to mid-thirties and learning to manage money as adults, with families and mortgages.

Gen Y, also known as the digital generation, is a tech-savvy group of individuals who were brought up using mobile technologies, Facebook and email. Javelin Strategy & Research recently released a report, Gen Y: How to Engage and Service the New Mobile Generation, which outlines how to reach the mobile generation as financial members and customers.

Some of the key findings include:

  • 4 out of 5 Gen Y consumers already have a personal and/or joint checking account, and 38 percent of them are very satisfied with their current banking relationship.
  • A Gen Y consumer is nearly twice as likely as an everyday consumer to be a mobile banker, and 31 percent of Gen Y consumers review account balances more than eight times a month via mobile banking.
  • Gen Y has high expectations from PFM tools, and 23 percent want PFM to categorize their spending.
  • For mobile PFM users: 46 percent want to make comparisons when shopping, and 33 percent use it to track finances on a daily basis.

For more Gen Y statistics, Credit Union Times has a slideshow here.

Are your Gen Y customers and members using mobile solutions more frequently than Gen X and Baby Boomers? Do you see a high demand in PFM functionality from Gen Y’ers? Let us know in the comments section below.

Comments

  1. Scott Miller says:

    From viewing the slides on what is driving the Gen Y mobile generations it is apparent that there will need to be a wider array of mobile offerings. In order to keep the attention and loyalty of the Gen Y customers, financial institutions and their service providers will need be leaders and innovators for mobile offerings.

    One way to do this is to target those products that the future Gen Y users will be acquiring over the next 10 years, for example Mortgages. In thinking about the products, the development will need to be holistic in that you can start with the creation of the mortgage via mobile methods all the way through to payment and delivery of specific notices via SMS in order to meet all of the regulatory requirements for those products. Mortages are a great example due to the core technology changes the industry has developed over the past 10 years such as the complete “Electronic” or truly paperless mortage.

    I believe the other thing that will allow financial institutions to keep the attention and loyalty of their Gen Y customers is to understand what has made them the mobile generation to begin with. This could be done by thinking of motivations / incentives that would be appropriate for this generation. In this realm you can think of how you can make doing business with the financial institution a “social event” and creating “social networks” among your customers or avenues such as Yammer or other ways for their customers to let the financial institution listen “collectively” to their Gen Y customers. What better way to know what they want and is going to keep them loyal but to listen to their ideas. This is very similar to what we are doing on Banking.com!

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