Millennials are one of the most important demographic and economic force of the present time. They are now gaining purchasing power like never before and the banking industry has upgraded itself by the integration of technology and making the process hassle-free for them.
The banking industry has been revolutionized by technological advancements and everything is getting digital and personalised which is probably the only way ahead for the future. It has rightly targeted the millennials by making banking easy, friendly, and transparent which has strongly built the foundations for the development of the economy of the country.
In this article, we shall discuss a few initiatives undertaken by banks to add more millennials and make availing banking services easy for them.
5 Initiatives by Banks focused towards Millennials
Tech-Savvy and On-the-Go:
- Banks provide mobile banking apps accessibility which provides all account-related activities and information instantly available in the mobile phone itself.
- Opening a bank account is now one click/call away. Banks have now made it easier for people to open a bank account by sitting at home.
- Banks are providing hassle-free account support 24×7 which is just a call away.
- Making transactions and receiving payments have been revolutionized by the system of UPI.
Ease of Loans:
- With the process of automation, getting loans has become easier and the long process of documentation is done away with.
- Personal loans, marriage loans, education loans, vacation loans, etc. have now become a better option for millennials instead of spending long-term savings of their parents.
- With the increase in purchasing power of millennials, banks are offering small loans on e-commerce platforms on various kinds of products to ease the burden of a one-time payment.
- Under the Mudra Scheme of the Government of India, loans are provided to MSMEs at a low rate of interest. This scheme has helped millennials belonging to lower socio-economic backgrounds to fulfil their aspirations.
- Due to the rise in the number of millennials wanting to study abroad, banks have made the process of getting student loans easier with long repayment options available up to 10 years.
- In many banks, there is no collateral or third-party guarantee required for smaller loan amounts up to a certain limit.
End to End Customer Support and Relationship Building:
- With technology evolving constantly, banks are now providing millennials ease of customer support via chatbots and voice assistants.
- 24×7 customer support for all queries is the assurance that every major player is offering which helps build trust and provide support at the time of distress that is needed by every consumer.
- There is more personalized service support for accounting and finance-related activities and trained professionals are available at the service of the customers.
Reward and Customer Loyalty
- Millennials are offered rewards and loyalty points whenever transactions are made using debit/credit cards which can be used later for discounts and getting other benefits.
- By spending with the cards on popular categories, millennials get exclusive deals and benefits on their purchase offered by banks.
- Banks are also providing exclusive benefits of lounge access at various airports across the globe or railway lounges in India to selected card users which attracts the millennials who travel on a regular basis.
Easy Savings and Investments
- Banks have now made it easier for millennials to save money by providing expert guidance by trained professionals about various investment plans and savings options.
- Banks are offering different savings accounts which include a regular savings account, salary account, zero balance savings account, senior citizen’s account, minor’s account, and women’s savings account that comes with special features.
Suggested Read: Top Online Savings Account for Millennials
How can Banks keep Millennial Consumers Engaged
Services beyond Banking Hours
Millennials want things to be served on demand. It is not just the experience they are looking for during the banking hours, they want to have a lasting relationship with their banker at their own schedule.
Need for Advice
The millennial generation is hungry for advice and is always looking for short-term investments. The need for financial education for millennials would turn fruitful for the banks as well.
The millennial generation feels authenticity in things they are able to connect with. Banks whilst providing services to them must ensure that they are providing products and services with which millennials are able to align.
Marketing via Social Media
Social media can be an important platform for banks in their marketing strategy. They can try to engage millennials by supporting various campaigns on social media. This would help the banks to foster the community of this generation and uphold their faith and loyalty.
Target the Needs, Not the Product
Millennials look forward to things that would comply with their needs. Banks must know what the millennials customer’s needs are and must focus on that solely. Selling the product shouldn’t be the primary motive of the bank, they must be able to understand the need of this generation. Banks should help them guide them through their journey and be able to address their pain points.
Offering a Pathway
If banks are able to tell millennials about their spending habits and how much should go into the savings account per month, that would really catch the eye of millennial customers.
Millennials are the fastest-growing customer base for banks in India and they are making banks change the way they do their business. The rapid induction of technology and digitization in the banking sector has changed things for the better.
Millennials would have no problem in entrusting their money to a genuine partner that understands them, looks out for them, and helps them make better financial decisions that add value to their life and do justice to their savings.
As banks are transforming their business strategy to cater to the millennials, they should not forget that while this generation needs automation, they also value human connection and that is where the banks need to find the correct balance.