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Instant Banking Gratification for Millennial Generation

By Matthew Smith, VP-e-Banking Services, Happy State Bank

Matthew Smith, VP-e-Banking Services, Happy State Bank

Heavy burdens from regulations, compliance, and audits in banking today are causing the customers to experience pain in online and mobile channels. However, technology is changing the landscape in aspects of life beyond banking. The millennial generation does not know the meaning of going to get an encyclopedia to “look something up.” At their fingertips, with use of smart device technology, there is an unlimited supply of immediate information through a search engine of their choice. These smart devices have voice recognition allowing them to book their calendar, look at the weather forecast, snap chat their friends or call a friend by using their finger is too much. It is important for bank CIO’s to understand that this need for “information” in instant gratification is pervasive. For example, Amazon just launched a new service for some prime members. It allows same-day delivery for products from the ease of a user’s mobile device. Consumers don’t have to drive out of their way to a store that may or may not have what they want in stock. 

“Banks now provide enhanced security for customer data, easy accessibility for all their banking needs, and are staying on the forefront of upcoming electronic banking needs”

Consumers expect this kind of simplicity and convenience applied to every aspect of their life including banking. As recently as ten years ago, internet banking and bill pay was making its way into the consumer’s everyday life. They loved that their bank was now available 24/7; the doors never closed. Checking their balance and paying bills on the bank’s website was a no-brainer. 

Within the last few years internet banking is trending downward giving way to yet another more convenient way for customers to interact with their bank, specifically mobile banking. With mobile, customers can immediately check their balance, make check deposits, find the closest branch and ATM locations, turn their debit card on or off to fight potential fraud, and have auto login enabled to bypass the cumbersome user name and password screens in order to get a quick balance. To make it simpler, they can now use touch ID that uses fingerprint for multi-verification to sign in. 

Banking has entered a new era of convenience. Banks are now everywhere that their consumers are, including on their wrist via the Apple Watch. It makes sense to take advantage of what our customers are now expecting: a simpler approach to banking. 

CIO’s need to understand that the younger generation is reshaping the way that the world does business. Millennials are driving the adoption of technology that once intimidated Matthew Smith 32December 2015 baby boomers. The older generation are becoming the largest segment of users on Facebook, and becoming comfortable with technologies such as texting, FaceTime, and Skype. 

All generations are carrying in their pocket or purse a smarter device that was used to only make phone calls. Greatgrandparents, grandparents, nephews, brothers, uncles, aunts and the list goes on, are now constantly connected in a way that the world has never seen. They also want these devices and apps customized and personalized to their needs. 

Banking is no longer just a checking account or a loan but a means for bankers to build deeper relationships with an entire family. Financial institutions can now reach consumers and know about their spending habits, saving habits, family, and everyday life. Customers no longer want to be put into a one-size-fitsall box, but want the ability to customize their financial wants based upon their mobile financial needs. 

Previously, banking included the complicated balancing of a checkbook that required paper statements, a check register, and a calculator. Banking can now be a part of everyday life and be a service delivered to their mobile device. It can assist with creating budgets through autocategorization to help customers reach their goal for their next purchase without going into debt. It enables bankers to engage customers via customized text notifications, or simply connect them to their banker through video chat or text message. 

Through these new emerging technologies, customers and bankers can now build a more meaningful relationship. Banking is no longer the daunting chore that many dreaded, but now the enabler to making lives better and more meaningful by providing consumers with tools that they can use to avoid fraud, make an informed decision based upon data analytics, or by simply connecting them with their banker.

As the millennials continue to age, accumulate more wealth, and begin to shape the way the world interacts with banking, this is a transition that provides a tremendous opportunity to every CIO, executive leadership team, and banking shareholder. With the changing environment, it is important for the CIO to have the trust of the executive leadership team and the board of directors. The banking industry is often viewed as traditional and can be considered outdated, however with a progressive executive leadership team that trusts the CIO, banks today can become a leader in the financial industry. In today’s world, the bank has to be ready to take advantage of the emerging technologies, applications, and tools to help the bank stay nimble and adaptive to the changing technology landscape. 

Banks need to understand that consumers live in an instant gratification world that has constant connection with an endless supply of information. It only makes sense for a bank to become a technology leader in the consumer’s everyday life. Banks provide enhanced security for customer data, easy accessibility for all their banking needs, and are staying on the forefront of upcoming electronic banking needs.

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