Millennials Are Here! BY Bryan Reaves, CTO

Although the topic has certainly received plenty of fanfare in the banking industry in recent years, we believe that Millennials (those born between ~ 1980 and 2000) will have a disruptive effect on the banking industry. While we don’t buy into the hysteria regarding Millennials’ antipathy towards traditional finance and homeownership, we do believe that preferences regarding the use of technology, human contract and relationships, and attitudes toward brand loyalty will have a major impact on the industry.

Among the studies published by leading consumer research and demography firms regarding this generation, the Millennial Disruption Index maintained by Viacom has proven to be one of the most interesting:

This study projected that banking would be THE most disrupted industry based on an extensive survey of millennial consumers. Among the observations of this study, the following were remarkable to us:

  • 53% of respondents didn’t think their bank offers anything different from other banks.
  • 71% would rather go to a dentist than listen to what banks are saying.
  • 1 in 3 were open to switching banks in the next 90 days.
  • 73% would be more interested in new finance product from a tech company than from their own nationwide bank.

In addition, other surveys concluded that:

  • 71% of Millennials don’t think that their bank communicates to them through their preferred communication channels, and
  • 86% of Millennials consider their banking relationship to be transactional rather than relationship-driven.

These factors may constitute cause for alarm, but when we consider that Millennials are estimated to be THE largest American generation by the US Census Bureau and that the youngest Millennials are presently in their late teens or early twenties, the industry has reason for significant concern. In order to reach this generation, banks must begin to reach out to Millennials via their preferred communication methods, which will entail extensive use of mobile devices, text messaging, and e-mail and which does NOT include an expanded ‘brick and mortar’ footprint.

At Excubia, we’re excited to be part of this generational change and to be able to offer solutions to enable our customers to communicate with not only Millennial, but all customers via more efficient electronic channels. To that end, we’re also excited to announce that Excubia’s 2.1 update will include support for enrollment of customers exclusively via cellular telephone number (no e-mail required)! In addition, our 2.1 update will also rollout support for expanded text message notifications regarding events like unread documents, required signatures, and new discussion comments. We believe this is a great update which will further empower your customers to interact with you via the smart phone alone if they so desire!

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