This three-part, generational blog series features fictionalized characters and includes information from our eBook, How to Attract Multiple Generations to Open New Accounts and Apply for Loans.
Miley the Millennial is part of the generation born between 1981 and 1996. Miley and the approximately 72 million Millennials (also known as Gen Y) in the U.S. were shaped by The Great Recession, the internet, social media, as well as the 9/11 terrorist attacks, according to Pew Research.
Since Miley and her generation grew up in the digital age, they want speed and convenience when it comes to banking. That means faster payments and quicker transactions — and they also want to access self-service options 24/7. Another way to keep Miley happy is by making it simple for her to fill out forms using her mobile phone.
Miley says that to meet her needs and those of her Millennial cohorts, banks and credit unions should incorporate self-service options on their mobile apps and websites so Millennials can set up bank accounts and update their accounts. They also want to learn how much money they can borrow and when.
When it comes to borrowing money, “Millennials are now the largest driver of net new loan demand” and that will continue to be the case for the next eight or so years, according to Morgan Stanley.
Combine Automation with Self-Service to Win Millennial Loyalty
To help Miley determine her borrowing limit, you can combine automation with self-service that will let you use an algorithm to automatically pre-approve loans and mortgages. This added convenience means she could be more apt to take you up on your offer instead of looking at options offered by your competitors.
Additionally, Miley thinks it would be awesome if her bank could offer a tool to help her understand her spending habits, manage her debt, and figure out how much she should put into her savings account every month for emergencies. What Miley wants is a partner – one that can help her with all aspects of her finances, including when it comes to making large purchases, such as buying a house.
However, Miley isn't a fan of being sold to. That means banks and credit unions should focus on building relationships with Millennial customers first and the sale second. Miley wants her bank's sales team to offer her products that will enable her to live a better life, at least financially. Therefore, financial institutions should figure out how to offer services to Miley that will make her more financially secure, and more likely recommend those services to her millennial friends.
Focus on a Building a Banking Relationship Instead of Sales
To build a relationship with Miley, you should assign one person to handle all her accounts, focusing on what they can do for her and suggesting ways to help her improve her existing accounts. It’s about better options, not more expensive products.
Miley values authentic and efficient communications from her bank and prefers text, chat, email, and Instagram. Like other Millennials, Miley usually doesn't answer phone calls because they take up too much time. After the initial conversation, your sales rep should follow up with Miley through social media to ask if she needs any additional help.
Building a relationship with Miley might not result in an instant sale, but chances are pretty good that you'll ultimately make a sale if you gain her trust. And when you do, you will have gained a loyal customer.
Lure Millennials with Banking Rewards & Financial Literacy Programs
Like other Millennials, Miley's not as loyal to her financial institution – or brands in general – as other generations. She would rather shop for the products and services that meet her needs, rather than sign on with a particular bank. And she absolutely won't stand for poor or inefficient service, which is likely why she trusts brands that have historically produced first-rate products.
You should concentrate on customer outreach and offer Miley workshops, content and financial literacy programs to build trust with your brand and capture her banking business.
Since Miley is also partial to banks that offer rewards or loyalty programs, use your digital tools to call attention to rewards programs that differentiate your financial institution from your competitors because Millennials are likely to switch banks for better offers.
The bottom line is that if you have a clear understanding of Miley's banking habits and preferences, you can properly shape your marketing strategies to meet her needs.
Digital Lending Enablement
MeridianLink enables lenders to give Millennials what they want: an online account opening, and borrowing experience for mortgages and consumers loans, while streamlining the process for your loan officers and underwriters. Talk to one of our digital lending experts to assess your current loan origination process needs to see if MeridianLink is right for you.