{"id":1544,"date":"2019-10-31T19:13:18","date_gmt":"2019-10-31T19:13:18","guid":{"rendered":"https:\/\/www.cloudnowtech.com\/blog\/?p=1544"},"modified":"2022-05-10T18:10:44","modified_gmt":"2022-05-10T12:40:44","slug":"the-millennial-problem-for-the-banking-industry","status":"publish","type":"post","link":"https:\/\/www.cloudnowtech.com\/blog\/the-millennial-problem-for-the-banking-industry\/","title":{"rendered":"The Millennial Problem For the Banking Industry"},"content":{"rendered":"

\u201c<\/span>The Millennial Disruption Index<\/span><\/a>,\u201d a three-year study conducted among 10,000 millennials, revealed some shocking facts – and not one of them looks good for the banking industry!<\/span><\/p>\n

71% of millennials said that they would rather go to the dentist than listen to what their banks had to say to them. 73% of them preferred to address their financial needs through services offered by Google, Amazon, Apple, PayPal, and so on. Going one step further, 33% of them said that banks were becoming obsolete – that they believed they won\u2019t even be needing the services of a bank in the future! What\u2019s more, all four leading U.S. banks were rated among the least-loved brands by millennials!<\/span><\/p>\n

From these results, it\u2019s evident that banks are doing something wrong when it comes to addressing the needs of a whole generation – the one that is now taking over the workforce.<\/span><\/p>\n

But what exactly is missing?<\/b><\/h3>\n

The answer, from an in-depth review of the study, seems to be poor customer experience.<\/span><\/p>\n

Most millennials who participated in the study felt that there was nothing that differentiated one bank from another. This is because the differentiation they look for is beyond that of price, product, and location. They expect banks to differentiate themselves in terms of the customer experience they offer.<\/span><\/p>\n

According to experts, customer experience is \u201cthe sum of all engagements a customer has with the company throughout the life cycle\u201d. Its impact can be measured by the \u201cemotional\/sensory reaction\u201d of the customer.<\/span><\/p>\n

According to another <\/span>study<\/span><\/a>, better customer experience leads to higher recommendation rates, higher deposit shares, and a greater likelihood of existing customers purchasing new products and services from the same bank. On the other hand, banks that do not focus on customer experience risk losing up to 12.5% of their share of deposits.<\/span><\/p>\n

Customers today expect banking to be a seamless digital experience that:<\/span><\/p>\n