Millennials leading the charge and pushing boundaries

WE ARE now living in an era where web-based consumer services are at their absolute peak. Digital banking, however, still has room to grow, and according to World Bank data, there are 154 million people between the ages of 15 and 29 throughout Latin America and the Caribbean, many of whom are unbanked or underbanked. But we live in a time where digital consumer services present the most transformative opportunities for the banking industry.

Born between 1980 and 2000, millennials may have had a rough start as they typically earn less compared to older groups. And many suffer from student loan debts and often resort to a credit card when handling emergencies. Nevertheless, millennials will soon make up the majority of our workforce and they are arguably the most mobile and tech-savvy group across the world. Their needs are unique but still require quality service without the restriction of geography or time. Therefore, banks had to find new and innovative ways to communicate with this group.

Most, if not all, major banks and financial institutions across Jamaica now provide online services for their customers. And yes, many have won prestigious awards in the last decade, signalling their growth in various aspects. However, the needs of millennials will continue to grow, and studies have shown that reaching millennials now will lead to them staying loyal when they become ready for traditional services. The financial needs of a millennial that is 25 years old typically remains the same as those of a 25-year-old in generations past. But it is the communication, including frequency, tone, media, and the technology utilised in reaching the consumers’ financial need that are pertinent.

So bank services like mobile payments, budgeting tools, mobile banking, and wealth management are key in fostering a strong relationship with millennials. Therefore, an institution that provides convenience in everyday transactions to assist with a busy social life, hectic work schedules, and a new family is a big win in the world of the consumer.

A population’s need is normally the catalyst that drives innovation, and in this highly technological age, we are in store for more innovation.

There will surely be new entrants in the banking market that will ask questions. Creations such as Bitcoin and mobile money have already sparked the conversation. So in years to come, will they seize the market, create a new ones, or will middle ground be developed where a new path to a whole new world is crafted?

Whatever the future brings, millennials will push the paradigm forward.