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Accenture Offers Advice on How Banks Can Keep Millennials Aboard

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Accenture Offers Advice on How Banks Can Keep Millennials Aboard

May 14, 2015
By Paula Bernier
Executive Editor, TMC

Big banks may be too big to fail today, but the millennial generation – the largest living generation in the U.S. – could potentially change all that.

The banking industry hasn’t done a heck of a lot in recent years to earn the trust and loyalty of consumers. Nonetheless, many people tend to stick with their existing banks due to a lack of momentum or a belief that there’s nothing much better out there for them.

Millennials, however, are much more likely to jump ship than people from previous generations, according to new data from Accenture (News - Alert).

A survey of more than 4,000 U.S. retail bank customers reveals that nearly one in five millennials in the group changed their bank in the past 12 months. That’s 18 percent, as compared to 10 percent for the 35- to 54-year-old age group, and the 3 percent in the 55 and older age group.

Of the millennials who switched banks, 17 percent went to online-only banks. Interestingly, people in the 35- to 39-year-old group were even more likely to churn to online-only banks – the makeup there was 31 percent.

Image via Shutterstock

The survey also said 67 percent of millennials use banks for which they say the traditional and digital banking experiences aren’t seamless. And 47 percent desire personal budget tools from their banks, according to the survey. About half of the millennials surveyed also expressed their desire for their banks to offer video chat. 

Accenture here is pushing the idea that banks need to offer more channels through which their customers can communicate with them. The firm says banks also should better know their customers, offer advice and more services to build loyalty, and more.

“Consumers’ perception of their banking relationship as transactional and not advice-driven is growing at a rapid pace,” Dave Edmondson of Accenture’s North America Banking practice said. “Banks run the risk that consumers increasingly view them as a utility — a service for basic financial transactions — and not as the first choice for seeking financial advice. Banks need to become more relevant to consumers’ everyday lives, including recommending suitable products and services, whether these options come from the bank or third parties.”

Edited by Dominick Sorrentino

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