The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the customer engagement in banking content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.
Gen Z and millennials are redefining what meaningful customer engagement in banking looks like. In our recent webinar, we dove into the trends driving this shift, and the tools and strategies financial institutions need to stay ahead.
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Here are a few key takeaways:
1. Efficient Digital Experiences, Especially Mobile, Lead the Way
Across all generations, digital banking experiences are the standard. Looking at Gen Z and millennials specifically, that digital inclination only grows stronger, with mobile banking being their preferred method.
Younger generations expect the same convenient, fast service from their banking apps as the service they receive from food delivery and shopping apps.
Secure digital payment options, like Apple Pay®, or application auto-fill bypass unnecessary, time-consuming actions and allow consumers to complete transactions quickly and efficiently.
Slow, tedious processes, on the other hand, can frustrate millennials and Gen Zers, driving them away. Moving through a mobile purchase only to hit required manual credit card input can persuade these consumers to abandon the transaction entirely. Redundant data field input in loan or deposit account applications can have the same effect, encouraging drop off.
To avoid this, simplify the application process. Auto-fill tools can pull in existing consumer data. Combination applications let consumers apply for multiple products at once. And automated approvals, guided by defined risk parameters, speed up decisions for qualified borrowers.
2. Personalized Experiences Are Vital
Efficiency is only half the equation; true customer engagement in banking also demands personalization.
A strong digital entry point with applications tailored to each segment’s needs and circumstances increases the likelihood a consumer will complete their application. Relevant messaging and branding shows consumers who your FI is and that you understand their needs. The same applies in the application process—when you ask only what’s relevant to them, you show you value their time and know their situation. That level of understanding builds trust and turns a generic process into their experience.
Cross-sell offers based on current, consumer-specific data can further seal the deal. This could look like a pre-approved auto loan offer for a consumer whose data shows is in the market for a new car. Or a mortgage product offer, targeting millennials within the average first-time homebuyer age range. The key is delivering relevant, timely solutions—through the channels most used by those you’re trying to reach.
3. Traditional Credit Unions & Banks Are Gaining Ground With Modern Technology
Digital-only bank competitors have been steadily gaining popularity among consumers. 44% of all new checking accounts opened in 2024 came from these institutions.
However, traditional financial institutions are taking note and responding. From a strategy perspective, these FIs are pursuing promising niche markets:
- 52% of banks and 46% of credit unions are pursuing business segments.
- 51% of banks and 19% of credit unions are targeting professional segments like universities, healthcare organizations, etc.
- 15% of banks and 42% of credit unions are focusing on hyper-specific demographic segments to offer tailored support and services.
From a technology perspective, these FIs are adopting supportive modern technology with features such as:
- Enhanced data intelligence and analytics to refine segmentation and outreach.
- Device-agnostic application experiences that seamlessly flow from one channel to another.
- Integration with third-party solutions that deliver on the services each FI needs.
- AI- and machine learning-powered automation for faster, easier service while maintaining accuracy.
Watch the full on-demand webinar to dive deeper into the trends shaping customer engagement in banking and discover how MeridianLink® helps deliver the digital-first experiences needed to stay ahead.
