Millennials are a generation that does not bank like those in the past. Now the largest generation in the workforce, they often feel they do not receive the banking experience they deserve. Many millennials believe most banks utilize overcomplicated, outdated, and ineffective resources and services. So, what do millennials expect from their banks, and what drives these expectations?
To fully understand what the millennial generation wants from its banks, it’s important to recognize their overall financial goals. Many millennials agree they face similar financial issues and share common goals. These goals include purchasing a house, paying off student loans, funding trips, and achieving career advancement. Their shared financial challenges include a lack of financial literacy, credit card debt, insufficient financial guidance, and a shortage of trustworthy information services.
So, what does a bank that helps with these goals look like? Read below to learn more.
1. Digital Services and Technology
It is important to understand that the millennial generation has grown in the workforce during a time of drastic technological and digital advancement. With that being said, millennials expect their banks to stay current with technological trends. This means having easy-to-navigate websites and applications that make the banking experience quick and simple. Additionally, this generation prefers completely online and mobile banking over visiting a physical bank branch, meaning banks with satisfactory digital services are often preferred.
2. Financial Education and Tools
As mentioned earlier, millennials find that banks’ lack of effort to help their customers develop financial literacy is a major problem. They feel that most banks do not make an effort to educate customers on how to expand their financial portfolios or provide them with the necessary tools to do so. Millennials suggest that if banks were to offer easily accessible financial advising and online tools to help manage their finances, they would be able to achieve better financial outcomes.
3. Rewards and Benefits
In addition to wanting banks to provide resources for financial literacy and healthy spending habits, millennials want rewards and benefits when they meet their financial goals. They are interested in incentives such as flight points, better interest rates, and bonuses for both checking and savings accounts. While many banks already offer such incentives, millennials are more likely to bank with those that offer the most practical and valuable rewards.
4. Low Fees and Good Rates
Millennials lean towards banking systems that offer low fees for account maintenance, transactions, and overdrafts. More importantly, they strive to do their banking through those who offer good interest rates on savings accounts, loans, and especially mortgages. This is because millennials are prioritizing buying homes and paying off student loans.
5. Transparency and Trust
Transparency and trust are expected by bank customers of all ages, and the millennial generation is no different. In today’s world of cyber fraud, online scammers, and identity theft, millennials want to ensure that their banking and personal information is protected. They seek banks that offer advanced security services and devices that alert customers immediately in case of suspicious activity or potential fraud. Providing robust security measures not only builds trust but also reassures millennials that their financial well-being is a top priority.