Your bank has Generation Y in its sights


In the not-too-distant future, your bank may look quite a bit more futuristic than it does now. And if it does, it'll be because banks are listening to the wants and needs of Generation Y.

Cisco's Internet Business Solutions Group (IBSG) recently conducted a study of 1,055 American consumers to get a sense of what they want out of their bank and how they want to interact with them. The study made several interesting findings, and I'd like to outline just a few before explaining how this may affect your bank, regardless of your age.

  • Generation Y's main concerns are (in this order): to reduce debt, to better manage their money in general, and to receive more financial education.

  • Generation Y wants more help in managing their finances. More than one-third of Generation Y (and Generation X) customers feel they need assistance in managing their money. Less than one-fifth of the baby boomers and their elders (the study calls them "silvers") feel the same way.

  • Generation Y values advice from friends and family three times as much as the boomers and silvers do.

  • Generation Y values advice from professional advisers more than their peers, their own research or automated tools.

  • As a whole, Generation Y likes their bank. Some 85% of Generation Y, according to this study, are satisfied or very satisfied with their financial institution.

Originally published