Millennials’ aversion to setting foot inside banks, thrifts or credit unions is the reason Webster Bank, Bank of America and other deposit-takers are cutting back their Connecticut branch fleets and updating the ones that are left.
Millennials' aversion to setting foot inside banks, thrifts or credit unions is the reason Webster Bank, Bank of America and other deposit-takers are cutting back their Connecticut branch fleets and updating the ones that are left.
Now, Millennials are flexing their consumer muscles in ways likely to drive banks and credit unions bonkers.
According to Virginia industry-data harvester SNL Financial, its latest Mobile Money consumer survey found that Millennials are more likely to indicate that certain features are missing from their bank app when compared to the older generations. Also, there are a few features that Millennials are more likely to use, the SNL survey found.
Across the board, Millennials (age 18-35) are more likely than other respondents (age 36-plus) to indicate that features are missing from their mobile bank app, the survey said. The feature most often considered missing by Millennial bank app users is savings account rates (19 percent for Millennials compared to 12 percent for all other age groups). A close second was a mortgage calculator, a feature in which older respondents were far less interested. Differences were also fairly large for paying bills and automated teller machine locators.
Millennial bank app users, especially older Millennials, indicated that they would use a feature that allowed them to view checking account rates, SNL said. This interest in account rates may be tied to the interest in branchless bank accounts that offer higher interest rates or even interest-earning checking accounts.
Not only do Millennials have an increased desire to see more features available in their mobile bank apps, they also say they are more willing to switch banks in order to get those features. When asked about switching banks in order to receive desired features, Millennials, were more likely than other respondents to consider the switch.
— Gregory Seay
