how banks can remain relevant in their decision-making eco ... · their decision-making eco-system...

The Millennial Migration:How Banks Can Remain Relevant InTheir Decision-Making Eco-System

A Global Banking Consumer Survey and Report by Oracle Financial Services

Inside This Report

1. Seize the Millennial Moment

2. Influencers Participating in the Report

3. The Many Shades of Millennials a. Millennials only see banking as transactional

b. Can banks capitalize on Millennials’ trust?

c. Millennials are beginning to adopt Non-Bank Transaction Modes

d. Young and Mature Millennials together wield the biggest influence

e. Mobile-First experience for the “Always-On” generation

4. The Millennial Migration to Non-Bank Transaction Modes – Measuring the Shift

5. Moments that Matter: Millennials’ Life Moments a. Integrating Life Moments and banking

b. A needs-based approach will win the hearts of Millennials

c. 5 lifestyle services Millennials want from banks

d. Breaking into Millennials’ digital space

6. The Human-Centric Design to Win Millennials a. Adopt a Mobile-First approach

b. Make every customer experience feel personal

c. Look out for Partnerships

7. Team Behind the Report & Acknowledgements

1 The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System

1. Seize the Millennial Moment

Millennials are the largest generation in world history, numbering 80 million1 and

commanding $1.3 trillion2 in direct annual spending in the U.S. alone. They now represent

a mainstream banking demographic with ever-increasing financial power. Having grown up

in an App society, their expectations are changing the game for almost every industry on

the planet and banking is no exception.

As the largest consumer base for banks, an examination of where and how Millennials are

making their financial decisions presents immense opportunity for banks and FinTech

startups (“FinTechs”), to build an eco-system of compelling digital experiences that

seamlessly integrates into Millennials’ lifestyles. That’s why we set about surveying 4,646

respondents across 9 markets – Brazil, Canada, China, France, Germany, India, Japan, UK

and the U.S. to get a view on how financial institutions can enable their highly digital &

mobile lifestyles.

This report takes a closer look at the milestones in Millennials’ lives that matter most, what

we call ‘Life Moments’, and who they are most likely to engage with around them. These

moments provide the inspiration for what we believe is a new model for lifestyle banking:

One that propels banks from a transactional platform or service provider, to a loyalty and

trust-invoking brand that is seamlessly integrated with the Millennials’ lifestyle.

There is immense opportunity for banks to be a major digital player seamlessly integrated into Millennials’ lifestyles.

$


2. Influencers Participating in the Report

DAVID M. BREARCo-Founder and CEO11:FS

ROB FINDLAYFounderNext Bank

David is a Banking & FinTech strategist, speaker, scholar, writer and VC. One of the most

influential people in Banking & FinTech globally, he established 11:FS to become a subject

matter expertise led source of benchmarking, research, advice and investment, and

recently launched an investment fund with Chris Skinner and Life.SREDA. His experience

with top financial services global brands gives David a truly unique vantage point on the

FinTech and Banking industry.

https://www.linkedin.com/in/davidbrear

AMIT GOELCo-FounderLet’s Talk Payments (LTP)

Amit is the Co-Founder and Managing Director of Let's Talk Payments (LTP). At LTP, he

provides the same level of analytical rigor that analysts put into their work combined with

Content 2.0 technology to offer unparalleled satisfaction for readers in the FinTech space.

Listed as one of 2015’s Top 100 Influencers and Brands in FinTech by Onalytica, Amit is

currently building a FinTech Market Network called MEDICI along with the LTP team. He

has a rich background in advising a wide variety of clients in FinTech, commerce and

technology space.

@amitTwitr https://www.linkedin.com/in/amitpayments

Rob is the founder of Next Bank and leads the group wide UX practice at DBS Bank in

Singapore. Prior to this, he was Director of Innovation for BlackBerry Asia Pacific. Rob

began his career in the creative industry, running his own brand and design company.

Transitioning to financial services, Rob led the customer experience for National Australia

Bank’s direct banking channels, and led a culture change programme at OCBC.

@robfindlay https://www.linkedin.com/in/robfindlay

SCARLETT SIEBERSVP, Global Business Development,New Digital BusinessesBBVA

Scarlett secures partnerships and opportunities within the BBVA ecosystem, and is the US

lead for BBVA's millennial initiative. She is also the face of BBVA when it comes to

speaking roles, mentorship in national accelerators, and judging startup competitions. A

regular contributor to Huffington Post, Forbes, and WeWork, Scarlett is also a NYC Fellow

of Startup Leadership Program and has been named amongst the top 50 most influential

people in FinTech by Onalytica in 2015.

@ScarlettSieber https://www.linkedin.com/in/scarlettsieber

Disclaimer: The above influencers contributed to this report in their personal capacity. The views expressed are their own, and do not necessarily represent the views of their organizations, of Oracle, or of Wharton FinTech.

@davidbrear

https://twitter.com/davidbrear

https://twitter.com/robfindlay

https://twitter.com/amitTwitr

https://twitter.com/ScarlettSieber


We define Millennials as four sub-sets: Young Millennials, aged 18-21; Middle

Millennials, aged 22-25; Mature Millennials, aged 26-30; and Grey Millennials, aged

between 31 and 45 years old.

Grouping Millennials by age reveals nuances in their behaviour towards banks and how

they approach financial transactions.

We will look at Millennials through 3 user personas - meet siblings Amy, Brian and Nicole;

home together for the first time in a year and a half.

Bringing the 3 siblings together highlights important differences in their current banking

attitudes and lifestyle priorities. Our findings uncover the nuances in their preferences on a

number of dimensions, which differ by age and location. These are some of the key

takeaways.

3. The Many Shades of Millennials

Name : Amy (Young Millennial)Age : 19Lives in : New York CityJob : StudentLikes : Snapchat, Venmo, Instagram

Name : Brian (Middle Millennial)Age : 23Lives in : ShanghaiJob : Brand ManagerLikes : AirBnb, payWave, Spotify

Name : Nicole (Mature Millennial)Age : 28Lives in : ParisJob : LawyerLikes : Pinterest, Net-a-porter, Luxury goods

Meet the Millennials’ Personas

Age 18 - 21 : Young Millennials11%

Age 46+ : Non-Millennials15%

Age 22 - 25 : Middle Millennials23%

Age 26 - 30 : Mature Millennials27%Age 31 - 45 : Grey Millennials

24%

We polled more than 4,500 respondents in 9 markets – Brazil, Canada, China, France, Germany, India, Japan, UK and the U.S.

There are important differences in the way Millennials think about and approach financial transactions, depending on whether they are Young, Middle, Mature, or Grey.

Amy is a Digital Native who grew up in an App culture and

documents her every move online, she is extremely reliant on her

social network for key decisions which currently revolves around

her graduation trip.

Brian is a Digital Enthusiast who sports the latest technology and

innovations. He spends most of his free time online, researching

his next career move.

Nicole is a Digital Convert but is much more selective about her

digital eco-system and relies on trusted advice especially with

planning her upcoming wedding and honeymoon.

Most Millennials maintain a transactional relationship with their banks, regarding them as

primarily a safe place to store money. This was most prevalent amongst Young Millennials,

91% of which do not view banks as a lifestyle-enabling institution.

Consumers are already running out of patience at

banks' lack of adaptation to a new digital future;

voting with both their wallets and their notion of trust.

The statistic that 60% trust banks (and is probably

declining) rocks the very assumption and currency

banks have around their role in the global economy.

a. Millennials only see banking as transactional

Which statement do Millennials (Age 18 – 45) see asthe most accurate?


60%

31%

9%

My bank is a safe place to keep my money

My bank helps me to manage my personal finances

My bank helps to support my lifestyle

Banks’ motivation for investing in digital banking has

been driven by cost reduction, resulting in

underwhelming experiences being delivered.

Millennials want more and banks need to wake up

before alternatives gain real pace.

DAVID M. BREAR

ROB FINDLAY

Other Sources:

59%

OnlineForums 35%

OnlineFinancialAdvisors

31%

87%

Millennials also trust their banks on matters regarding personal finances if such advice

were provided. An overwhelming 88% indicated so, above family / friends and personal

financial advisors.

These observations reflect the potential for banks to evolve into a bigger player in

Millennials’ lives. They can capitalize on the high level of trust that Millennials currently

have in them for providing personal financial advice, and design customized products and

services that would enable Millennials to make their decisions easily and seamlessly

without leaving their digital eco-system.

Banks are still the most trusted source for advice on personal finances

Banks

Family /Friends

PersonalFinancialAdvisors

With banks maintaining a high level of trust in holding funds and managing personal finances, this trust can be built upon through the design of products and services that integrate seamlessly with Millennials’ lives.


20% 40% 60% 80%

88%

Qn: Thinking about seeking advice on your personal finances, please indicate 3 of the following sources that you would trust the most?

b. Can banks capitalize on Millennials’ trust?


While traditional payment methods are still the primary platforms for transactions,

Millennials are increasingly showing affinity towards non-bank alternatives.

Currently, the most frequently used payment modes are cash, bank cards and online

banking, which registered significantly higher usage (79%, 76%, and 71% respectively)

than non-bank alternatives such as alternative payment providers (like PayPal) or mobile

wallets.

Yet we also found that non-bank options are gaining greater traction with Millennials,

where the older the Millennial, the higher the likelihood of trying an alternative payment

method, with these alternatives being most popular amongst Mature Millennials.

c. Millennials are beginning to adopt Non-Bank Transaction Modes

Mature Millennials (Age 26 - 30) are most likely tohave used non-bank options than any other age group

While traditional payment methods are still primarily in use, non-bank options are gaining traction amongst Mature Millennials, who are most willing to consider alternatives.

Qn: Which of the following methods have you used in the last 6 months to make a financial transaction?

Highest percentage of respondents who have used non-bank options

Alternative PaymentProviders (e.g. Paypal)

49%Age 31 - 45

Mobile Money

18%Age 26 - 30

Peer-to-Peer PaymentPlatforms (e.g. Venmo)

7%Age 26 - 30

Mobile Wallet

26%Age 26 - 30

Close to 70% of the Indian Internet population are

Millennials, who are driving the mobile wallet adoption

in India estimated at US$2.2 billion in 2015. The

mobile payments market in China is estimated to be

over US$180 billion. The average age of Yu’e Bao’s

(Alipay’s investment platform) nearly 50 million users

is currently 28.

AMIT GOEL


In particular, Mature Millennials are more likely to use mobile wallet and mobile money, while Young Millennials prefer peer-to-peer payment platforms and alternative payment providers.

Together, Young and Mature Millennials being increasingly open to non-traditional modes of payment and maintaining substantial buying power represents a large financial opportunity for

banks to offer and monetize new payment products and services for these groups.

Qn: Which of the following is your preferred transaction mode? Select the top 3.

Percentage of Millennials (Age 18 – 45) who prefer non-bank options against Non-Millennials (Age 46 & above)

Young Millennials (Age 18 – 21) have the highest preference for Alternative Payment Providers and Peer-to-Peer Payment while Mature Millennials (Age 26 – 30) have the highest preference for Mobile Walletand Mobile Money

d. Young and Mature Millennials together wield the biggest influence

4%Age 46+

1%Age 46+

11%Age 18 - 45

4%Age 18 - 45

Mobile Money Peer-to-Peer PaymentPlatforms (e.g. Venmo)

40%Age 18 - 45

36%Age 46+

7%Age 46+

19%Age 18 - 45

Alternative PaymentProviders (e.g. Paypal) Mobile Wallet

Globally, 68% of Millennials chose Mobile or Desktop as their most frequent channel of

interaction with their banks. In the U.S. alone, 75% of Millennials are cited to be at least

somewhat reliant on mobile banking to manage their accounts, and more than one quarter

completely rely on it.3

Corresponding with Millennials’ high dependence on mobile are their equally high

expectations for their digital experiences. There is a general sentiment that banking

applications can be improved, a finding supported by SNL Financial who also found that

that 53% of Millennials see their mobile banking applications lacking, with 54% of that

group saying they would switch providers if the alternative offered better applications.4

e. Mobile-First experience for the "Always-On" generation

More than 68% of all Millennials say Desktop or Mobile is their most frequent channel of interaction with their Banks

Mobile

Desktop

Younger Millennials are more likely to use mobile devices when interacting with their banks

Retail StorePhone

Mail

Other Channels of Interaction with Banks (by age groups)

Branch

19% 18%17%16%5% 4%3%6%

5% 4%7%6% 4% 4%5%6%

With most of their interactions going digital, the future of digital banking belongs to banks who develop banking applications with a Mobile-First mindset.


Qn: Rank how often you interact with your bank through the following channels.

28%Age 26 - 30

29%Age 18 - 21

38%Age 18 - 21

30%Age 22 - 25

38%Age 22 - 25

41%Age 26 - 30

47%Age 31 - 45

24%Age 31 - 45

Banks need to stop treating mobile banking as a

dumbed-down version of Internet banking. It should

be the centre of all customer touch points.

Millennials expect a better ability to multitask, to save

time and money. They want mobile products and

experiences that enable them to do things in two to

four clicks.

AMIT GOEL

DAVID M. BREAR

4. The Millennial Migration to Non-Bank Transaction Modes – Measuring the Shift

43% of all Young Millennials prefer Alternative Payment Providers and 6% of them prefer Peer-to-Peer Payment Platforms, more than any other age group.22% of all Mature Millennials prefer Mobile Wallet and 14% of them prefer Mobile Money, more than any other age group.

52% say Alternative Payment Providers (like Paypal) is one of their Top 3 preferred transaction modes, compared to the global average of 40%. Of the 9 markets, they have the highest ratio of those aged 18 – 21 (64%) who selected this.

Only 8% selected Mobile Wallet as one of their Top 3 preferred transaction modes, compared to the global average of 19%. Highest ratio of cheque users (60%) amongst all 9 markets.

15% selected Mobile Wallet as one of their Top 3 preferred transaction modes, less than the global average of 19%.

Out of the 9 markets, China has the highest

ratio of Millennials who have used Mobile

Money (46%) and Mobile Wallet (60%) in

the past 6 months.

Out of the 9 markets, Germany has the highest ratio of Millennials (69%) who have used Alternative Payment Providers (like Paypal) in

the past 6 months.

24% and 38% have used Mobile

Money and Mobile Wallet

respectively in the past 6 months.

When asked about their Top 3 preferred

transaction modes, 23% selected Mobile Money

(double the global average of 11%) and 31% selected Mobile

Wallet (compared to the global average of 19%)

Only 10% have used Mobile Wallet which is less than half of the global average of 23%.

50% selected Alternative Payment Providers (like Paypal) as one of their Top 3 preferred transaction modes.

Migration Maturity Index

- Low- Moderate- High


10

The way for banks to integrate into Millennials’ lifestyles is to examine where and how

Millennials are making their financial decisions. By looking at data, such as spending

patterns, and launching surveying effort to identify the most relevant moments in a

customer’s life, banks gain valuable insight on where to focus their new product

development efforts. These moments that matter are what we refer to as Life Moments,

ranging from daily shopping & budgeting, to major commitments like finding a new job and

planning a vacation.

As the nature of spending priorities differs between Young, Middle, Mature and Grey

Millennials, we sought to understand their top 3 Life Moments to identify where these

priorities lie.

Depending on what stage of their life they are in, we find Millennials globally prioritizing

their expenditure decisions according to these top 3 Life Moments: Planning a vacation

(25%), Finding a new job (17%) and Daily shopping and budgeting (16%).

5. Moments that Matter: Millennials’ Life Moments

Qn: Which of the following life moments appeal most to your lifestyle right now? Select 1 only.

Top 3 Life Moments Selected By Millennials

The Millennial Migration: How Banks Can Remain Relevant In Their Decision-Making Eco-System

Top Life Moments for Millennials differ by age. Banks are in the best position to align data and provide customers with financial services regardless of which stage they are in their life.

Planning a Vacation

Deciding on a College/ Furthering Studies

Finding a New Job

Young Millennials (Age 18 - 21)

31%

19%

16%

Middle Millennials (Age 22 - 25)

22%

Planning a Vacation

Deciding on a College/ Furthering Studies

Finding a New Job

21%

14%

Mature Millennials (Age 26 - 30)

Daily Shopping& Budgeting

Planning a Vacation

Finding a New Job

17%

15%

26%


a. Integrating Life Moments and banking

Millennials are, at best, lukewarm regarding the current ability of banks to help them in

their Life Moments, with less than 10% of them seeing their bank as helping to support

their lifestyle.

A silver lining is that Millennials, especially Grey Millennials, are ready to interact and

engage with banks in new ways. Banks are their third most trusted source for

information and advice when making decisions related to Life Moments, compared to

their social network of family / friends, as well as search engines – a finding more

pronounced in older Millennials than younger ones. Millennials would, however, rather

turn to banks than media outlets, non-bank payment providers and retailers.

Ranking of Sources when Making Decisions bypreference

Qn: Whom would you like to help you prepare for or make decisions related to the selected lifemoment?

Young Millennials (Age 18 – 21) Middle Millennials (Age 22 – 25)

Mature Millennials (Age 26 – 30) Grey Millennials (Age 31 – 45)

1

2

3

4

5

6

7

Family / Friends

Search Engines

Social Networks

Banks

Media Outlets

Non-Bank Payment Providers

Retailers

Search Engines

Family / Friends

Social Networks

Banks

Media Outlets


Retailers

1

2

3

4

5

6

7

Search Engines

Family / Friends

Social Networks

Banks


Media Outlets

Retailers

1

2

3

4

5

6

7

Family / Friends

Search Engines

Banks

Media Outlets

Social Networks


Retailers

1

2

3

4

5

6

7

There is a huge opportunity for banks to move up the

ranks through the twin principles of transparency and

simplicity.

SCARLETT SIEBER


Millennials are also willing to explore new products and services by their banks aimed at a

broader set of lifestyle and financial needs. 51% are likely or very likely to try new services

offered by their bank, and a further 28% are neutral.

When asked if they would be receptive to banks offering ways to help them prepare for

Life Moments, the answer was a resounding ‘Yes’.

However, the bad news is the propensity to engage with these new types of services

decreases with the younger Millennials. Young Millennials are the least receptive to new

services offered by their banks, having grown up in an environment where the

decision-making eco-system is more fiercely competitive than that of Mature Millennials.

Millennials currently do not see their bank as lifestyle-enabling, but are resoundingly open to banks offering new ways to help them prepare for Life Moments. Banks have to move swiftly before the opportunity is lost.

Percentage of Respondents who said they are 'Likely' or 'Very Likely' to try new services bytheir bank

51% said they are ‘Likely’ or ‘Very Likely’ to try new servicesrelated to life moments

60%

50%

40%

0%Age 31 - 45 Age 26 - 30 Age 22 - 25 Age 18 - 21

Millennials may be willing to try new services, but

they have equally high expectations and are less

forgiving of poor execution and user experience.

Banks need to provide a customer experience of a

higher level than what they are delivering now.

DAVID M. BREAR


Millennials struggle to make decisions and plan for these Life Moments and the top

challenges they face in making these decisions are Choices, Affordability, and Experience.

Consider Amy’s graduation trip planning process. As she searches through the vast price

comparison sites and customer reviews available, she cannot help but feel that she may

make the wrong choice.

Banks can take this opportunity to provide contextual banking solutions by integrating

their products and services into Millennials’ decision-making process during key Life

Moments such as the one Amy is facing. In this instance, this data-driven banking

approach could have helped Amy with the heavy-lifting when planning her vacation; by

providing recommendations based on her financial position, made relevant with data from

her previous trips and like-minded customer reviews.

Top Decision-Making Challenges faced by Millennialsduring Key Life Moments are related to Choices,Affordability and Lack of Experience

Planning a Vacation

47% said “I have too many choices” and 35% said “I’m not sure I can afford this”

Finding a New Job

36% said “I don’t have experience with this” and 35% said “I don’t know how to start”

Daily Shopping& Budgeting

44% said “I have too many choices” and 35% said “I’m not sure I can afford this”

With the customer data they already have, banks are in a prime position to provide Millennials clarity when making important financial decisions.

b. A needs-based approach will win the hearts of Millennials

Qn: Select the primary challenges associated with the selected life moment. You can select as manyas applicable.


c. 5 lifestyle services Millennials want from banks

The top 5 services Millennials were the most positive about that banks could potentially

offer are: 1) Discounts at relevant stores; 2) Checklists for tasks related to life events; 3)

Recommendations based on customers like them; 4) Professional / expert reviews; and 5)

Budgeting Tools or content. There is clear synergy between Millennials’ preference for

these services and the functions they serve addressing the top 3 challenges with

Millennials’ Life Moments that we identified earlier – Choices, Affordability, and

Experience.

Top 5 New Services with Highest Percentage of Millennialswho said they are ‘Likely’ or ‘Very Likely’ to try it

53% 52%Budgeting Tools or ContentProfessional / Expert Reviews

54%

57% 55%Checklists For Tasks

Related To Life MomentDiscounts at

Relevant Stores

Recommendations BasedOn Customers Like Them

Qn: How likely would you be to try the following services if your bank offered them to help youwith this life moment?


20% 40% 60% 80%

Poor Excellent

70% rated 4 - 530% rated 1 - 3Age 31 - 45

20% 40% 60% 80%

Poor Excellent

67% rated 4 - 533% rated 1 - 3Age 26 - 30

20% 40% 60% 80%

Poor Excellent

65% rated 4 - 535% rated 1 - 3Age 22 - 25

20% 40% 60% 80%

Poor Excellent

63% rated 4 - 537% rated 1 - 3Age 18 - 21

The younger the Millennial, the less satisfied they arewith their digital banking experience

The younger the Millennial, the less satisfied they are with their digital banking experience. Banks have to look before they leap into the digital game because they only get one shot with Millennials. They are more digitally savvy and their standards are high, being familiar with other digital players who have set benchmarks. Banks need to consider how well they can design and deliver these products and services in this competitive environment.

d. Breaking into Millennials’ digital space

Banks do not currently figure into Millennials’ thought process when it comes to their life

moments. Nor is the current digital banking experience they are providing Millennials up to

mark.

Millennials are digitally savvy – the younger they are, the more so – and they live in a digital

eco-system where other non-bank players are more prominent. Banks have stiff

competition and high benchmarks to consider, which is why younger Millennials are less

satisfied with their experience with digital banking than older Millennials.

Banks need to demonstrate new capabilities and transform their relationships with

younger Millennials in order to rise above the clutter and remain relevant.

This is not an insurmountable task, having the twin advantages of still being regarded as

important, as well as younger Millennials’ affinity with the digital space. The way to gain

trust – which we define in this context as banks’ ability to meet Millennials’ needs for key

life moments, rather than banks’ ability to store their money – is to provide timely digital

services made absolutely relevant by the wealth of data held on that customer.

Qn: On a scale from 1 – 5, how would you rate your existing digital banking experiences?


Banks need to take a human-centric approach in their product development strategies. They should leverage their customer data strategically to design and deliver an experience that is mobile, personalized and value-added. They should act now, before other digital players take their place.

The key to building trust and emotional rapport with Millennials is to develop products

which would help them mitigate their top associated challenges in making decisions and

planning for their Life Moments: Challenges such as Choices, Affordability, and

Experience.

Take Mint, an app which is experiencing rapid adoption among Millennials in the U.S. A

free, web and mobile-based personal finance application, Mint enables consumers to

spend smarter and save more. Mint users pull all of their accounts, cards, and investments

into one place so that they can track spending, create a budget, receive bill reminders and

track credit score.

Because Mint makes it easy to track daily spend and makes budgeting simple and

transparent, it appeals to Millennials who do not have experience managing budgets, nor

know where to start in making and achieving financial goals such as the affordability of a

first home. It is also personalized, with customized tips for reducing fees and saving

money based on the user profile and transactional behavior. It can also be linked to their

bank account.

Banks can easily replicate Mint’s success. In taking a human or user-centric approach, they

need to design an experience that reduces friction amongst all of Millennials’ financial

needs. In particular, they need to pay attention to the following development strategies.

6. The Human-Centric Design to Win Millennials

With 80%+ of Millennials owning smartphones and 97% of those devices

running on either iOS or Android, any new product should first and foremost be

optimized for these media. More than just looking beautiful, a user-centric

approach in both visual design and usability on a mobile and desktop platform

will improve engagement, which would in turn drive relevance and trust.

a. Adopt a Mobile-First approach

Banks that embrace a digital first approach - BBVA,

Alibaba, Tencent, WeChat, DBS, CommBank, Hana

Bank on the banking, tech or corporate side, and

Transferwise, Everledger, Lufax, Lending Club, Stripe

on the start-up side - will make the best impact. Too

many are simply 'nibbling around the edges' and need

to jump in the deep end!

ROB FINDLAY

To stand out from the clutter, banks need to build emotional engagement with their

customers. By making sense of customer data available to them, they can provide

customers with personalized, relevant, and contextual solutions to fit their current lifestyle

needs. Banks also need to take a holistic view of how their multiple products and services

can work together instead of existing in silos, creating a seamless experience for

Millennials who may have multiple accounts, relationship managers and lifestyle needs.

These efforts would make every customer believe his digital journey is a carefully curated

experience.

b. Make every customer experience feel personal

Banks can tap insights from their customer data to identify other brands making an impact

in the same space that they want to be in to. This should serve as a basis for potential

partnerships in offering new solutions. With this foundation, banks can create services that

enhance, rather than compete with, the services that customers use and love. By

associating a bank’s brand with these beloved companies, and by providing novel value,

banks tap external brand associations that reposition themselves as a lifestyle-enabler.

c. Look out for Partnerships

With the focus less on banks and more on banking,

banks should find the right partners and the right

engagement models, be it investments, client-vendor,

a JV or any other such relationships, to remain

relevant. They can collaborate with FinTech

companies to deliver a better user experience, which

we are already seeing with some banks. BBVA

launched a robo-advisor product in the market with

FutureAdvisor and DBS Bank recently launched a

mobile-only bank in India and used tech from Kasisto

(AI) for the virtual assistance.


AMIT GOEL

Partnerships are key and associating with brands

Millennials already know and love will provide them

with the best of both worlds - trust and solid

foundation. Now, more than ever, collaboration is key.

SCARLETT SIEBER


(1)“Why Small Business Saturday Is Massive Millennial Business”; Nov 25, 2015; at http://www.forbes.com/sites/winniesun/2015/11/25/small-business-saturday-is-big-millennial-business/#4e1eca197669

7. Team Behind the Report

(2) “How Millennials Are Changing The Face Of Marketing Forever”, Jan 15, 2014; at https://www.bcgperspectives.com/content/articles/marketing_center_consumer_customer_insight_how_millennials_changing_marketing_forever/

(3) https://www.salesforce.com/blog/2016/03/stats-about-millennials-mobile-banking.html

(4) http://www.cnbc.com/2015/04/22/for-millennials-banking-is-all-about-the-apps.html

(5)https://www.mint.com/

PARVEZ AHMADDirector of Marketing, Asia Pacific & JapanOracle Financial Services

ELIZABETH STARK

Parvez focuses on marketing strategy, demand generation and thought leadership. He has led global marketing campaigns on Digital Banking and FinTech initiatives, including the impact of Digital on Retail Banking, and the impact of Millennials on the digital banking customer journey. Parvez is also closely involved in the FinTech Startup space in Asia Pacific, being a mentor at Startupbootcamp FinTech, and the creator of innovative online & offline platforms such as #DigitalBootcamp and #DataAnalyticsBootcamp.

@parvezah https://www.linkedin.com/in/parvezah

At Wharton, Liz is involved with the FinTech club, led the Penn Design Challenge with Wharton Innovation & Design, and is a consultant for the Small Business Development Center. Prior to Wharton, she was a Manager in the Corporate Strategy Group at Capital One, leading analyst teams and lead projects relating to product development, customer analysis and experience, and new market entry.

https://www.linkedin.com/in/lizstark

MONICA MYERS

Monica is a second year MBA student majoring in Marketing and Management. She recently won the 2015 Penn Design Challenge, which partnered with American Express and innovation accelerator Made by Many to rethink how “underbanked” consumers can better interact with their finances and manage their spending. Prior to Wharton, she was a Finance Manager at American Express, and recently interned at Google doing business development for its mobile wallet, Android Pay.

@MonicaM_NYC https://www.linkedin.com/in/monicamyers

DIVYA KRISHNAN

Divya is currently pursuing an MBA majoring in Finance and Marketing. During her time at Wharton, she has researched and consulted for a leading online lending company, a startup quantitative risk manager, and a digital currency asset manager. Prior to Wharton, she spent five years at Citigroup as an analyst within quantitative trading and a senior associate in structured products.

@divya08k https://www.linkedin.com/in/divkrishnan

IRFANALI MANJI

Irfan is a first year MBA student majoring in Marketing and Operations. Prior to Wharton, he worked at Capital One launching affluent card products and collaborating with Uber and Intel to build exclusive digital experiences for customers.

@irfanalimanji https://www.linkedin.com/in/irfanmanji

Acknowledgements

https://twitter.com/parvezah

https://twitter.com/irfanalimanji

https://twitter.com/MonicaM_NYC

https://twitter.com/divya08k

https://www.bcgperspectives.com/content/articles/marketing_center_consumer_customer_insight_how_millennials_changing_marketing_forever/#bmb=1

Oracle CorporationWorld Headquarters500 Oracle ParkwayRedwood Shores, CA 94065U.S.A.

oracle.com

Copyright © 2015, Oracle and/or its affiliates. All rights reserved. This document is provided forinformation purposes only, and the contents hereof are subject to change without notice. Thisdocument is not warranted to be error-free, nor subject to any other warranties or conditions,whether expressed orally or implied in law, including implied warranties and conditions ofmerchantability or fitness for a particular purpose. We specifically disclaim any liability withrespect to this document, and no contractual obligations are formed either directly or indirectlyby this document. This document may not be reproduced or transmitted in any form or by anymeans, electronic or mechanical, for any purpose, without our prior written permission.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may betrademarks of their respective owners.

About Wharton FinTech

Wharton FinTech is the first student led FinTech initiative. We are FinTech thought leaders connecting innovators, academics and investors with the ideas and companies that are reinventing global financial services. For additional information on Wharton FinTech and its thought leadership, including access to original content published on its blog and podcast, visithttps://medium.com/wharton-fintech

About Oracle

Oracle offers a comprehensive and fully integrated stack of cloud applications and platform services. For more information about Oracle (NYSE:ORCL), visit www.oracle.com. For additional information on Oracle and its banking solutions, visit Oracle Financial Services at www.oracle.com/us/industries/financial-services/index.html

Join the conversation @Digitize2Thrive Join the conversation @WhartonFinTech

https://twitter.com/Digitize2Thrive

https://twitter.com/whartonfintech

how banks can remain relevant in their decision-making eco ... · their decision-making eco-system...

Documents