78% of millennials want mobile options when picking a bank - report

Monday 21 April 2014 11:28 CET | News

Banks and financial institutions looking to lure in millennials need to go beyond the basic requirements of mobile banking to also include personalized rewards and financial help, a recent study from BancVue has revealed.

The study, entitled “Consumer Banking Insights,” looks at how millennials differ from older generations in terms of mobile banking. The results from roughly 1,000 United States adults aged 18 or older and indicate that while big banks are nailing some of the essentials with mobile banking, there is room for improvement with features that specifically target tech-savvy millennials.

Compared to the 78% of millennial consumers who look for mobile banking, 66% of 35-54 year olds and 44% of consumers aged 55 or older rate mobile as important when deciding on a bank.

The report highlights that these percentages shoot up even more when looking at online banking broadly. A whopping 94% of millennials said that online banking was important in choosing a financial institution compared to the 85% of consumers between the ages of 35 and 44.

Cash back options also resonate strongly with younger consumers. 88% of millennials were swayed by cash-back options from their bank versus 74% of mid-age consumers, and 67% of the older demographic.

The study also points out that brand image is also more important to millennials than other generations when it comes to mobile banking. 81% of millennials cited recognizable brand name as at least somewhat important compared to the group of consumers aged 35-54 years old.

According to the research, millennials also expect for their mobile experiences with banks to be personalized and customized.

The study also indicates that 87% of Gen-Y consumers surveyed have also said that customizable rewards were important to them, which is up from the 73% of mid-aged group who said the same. 67% of older consumers said that personalized deals were important to them.

The research also finds that across all age groups, 28% of megabank (or a major bank) clients rated mobile banking as important. This is up significantly from the 15% of consumers with a bank account from a community financial institution (or CFI) who said the same.

ATM access was rated as important by 84% of megabank consumers compared to 67 of CFI bankers.

The study backs up the fact that while big financial brands have been quick to embrace mobile to keep up with consumers’ growing expectations, the shift from physical to digital banking has been slower for credit unions and smaller banks.

As millennials increasingly become more financially independent, smaller banks will need to step up their mobile initiatives significantly to stay relevant to this group.

Finally, the study reveals that 23% percent of Gen-Y consumers who have a checking account outside of a CFI believe that CFIs do not offer the same benefits that they already receive.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Millennials, mobile, bank, study, financial institutions, BancVue, online banking, megabank, options, credit unions
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce

Industry Events