A New Generation Marketer

“Why should I open a bank account if I have my wallet and good money management skills?”

“Why should I open more accounts, such as a credit card account, if all I need is my savings?”

“What is banking even for?”

Sadly, these three questions are commonly asked by Generation Y consumers. There are three categories of banking consumers in Generation Y: underbanked, unbanked, and WhyBank. Generation Y consumers range from 9-29. Those on the younger age of the spectrum do not know why they need a bank account at all, simply because they do not have much of an income (probably mostly from babysitting or a summer job). If they do acquire a bank account, it is probably because their parents wanted them to, but they are likely to not keep up with the account.

Those on the older spectrum of the age group may know that they need a bank account, but do not know much about banking or which bank to choose. Personally, I only had a small savings account up until my freshman year of college. When I went to college, I had to switch to a bank that was available around my school since I was using a local bank in Connecticut at the time. I had no idea what my banking options were, nor which bank would be best for me. (Thank goodness I had my parents to advise me!)

A major reason Gen Y consumers do not use banks is either because they do not know why they would need an account, or they do not trust banks.

So what is a bank to do with these confused Gen Y consumers?

I did a senior marketing project for a bank in Western Massachusetts called Country Bank. We examined this exact question. They were looking to expand their popularity with Generation Y.

- Banks need to educate these consumers about banking services in general and THEN tell them why Country Bank is the best choice for them.

- Banks cannot simply tell Gen Y why they are the best if they do not understand banking first.

- Banks must ensure that they have the proper technology to attract these consumers. Gen Y is the most technologically savvy, so they want internet banking, mobile banking, and text messaging alerts. This makes it most accessible for them to use your services.

- Banks should also get into the social realm. Research reports that Gen Y uses friends, family and the Internet to gather a majority of their information. If people are talking favorably about your bank, you will have a higher likelihood of being chosen as their bank.

- Lastly, keep a personal touch on all communications with these consumers once they have created an account. Do not lose their trust in you, and make them feel important.

See my two Slide Share presentations under the page ‘My Portfolio’ for a detailed outline of Generation Y and their attitudes towards banking!