The financial services industry is increasingly focused on
winning Millennial customers, but most firms still fail to deliver an
experience that will resonate with the generation, according to a study
released by Corporate Insight.
According to the study, banks, brokerages, credit card
issuers, insurers and retirement plan providers are all changing fundamental aspects
of their marketing, products and service models “to capitalize
on the Millennial opportunity.”
At a high level, Millennials put a substantially higher
rating on the importance of financial education from their bank, retirement
plan provider and brokerage firm compared with older generations. Further, the study finds that Millennials are
the generation most likely to interact with their providers exclusively via a mobile
app rather than through a website alone.
One common misconception, the research warns, is that Millennial's willingness to embrace technology means they are automatically disinterested in traditional high-touch service from advisers, banks, credit card companies, etc. Overall, half of Millennial investors say they prefer to
rely on the guidance of a broker or adviser rather than trusting their own
investing decisions, for example.
“To succeed with Millennials, firms must recognize and
respond to their need
for financial education and guidance, and their demand for mobile account
access,” says James McGovern, vice president of consulting services at
Corporate Insight. “Flexible pricing and products, a socially conscious
corporate philosophy, and all-around transparency are also important elements
of an effective Millennial-focused value proposition.”
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