Given this segment’s growing wealth, and that 75 percent of Gen Yers state they trust the security of a bank or credit union Website as the place to manage their finances, it’s important for banks to capture these online relationships before someone else does.
- Generation Y are the most comfortable and heaviest users of online banking.
- Nearly 90 percent of Gen Yers bank online, almost 70 percent pay their bills online and about one third have opened an account online in the last year.
Just how large is this opportunity? Small businesses typically hold significantly more financial products than consumers, making them a tremendous growth opportunity for a bank with the right set of online solutions.
- Small businesses continue to struggle to piece together online banking solutions designed for consumers with their own manual methods to conduct basic financial management.
- There is a significant gap between what small businesses need from the retail channel and what they are currently being provided.
Essentially, women are emerging as an increasingly powerful group of spenders who are simultaneously autonomous and independent, leading to a higher need for tailored tools to help them meet their unique and changing needs.
- According to a survey by The Boston Consulting Group, “women are driving $12 trillion in global spending today and will contribute an incremental $5 trillion in earnings over the next five years.”
- The survey goes on to predict that in the next 20 years, women will control more than 70 percent of consumer spending worldwide.
Innovative banks and credit unions will position themselves as the primary online financial hub for each of these customer segments. Retail bankers must create a single sign-in destination where users can clearly view — and act on — a full picture of their financial health, from their spending habits to what bills are coming up and how much they can afford to spend and save. And businesses must add simple invoicing, payroll and payment processing capabilities. Offer them the right set of online services in their time of need today and you can build relationships for life, growing your business at the same time.
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