Millennials are Switching Banks - Why It's a Good Thing

While millennials may not be in the same money-earning years as those of the generations preceding them, the way they approach banking is still an important consideration. The individuals in this segment of the market are just starting to build wealth, borrow larger sums of money and consider what they’re going to do in the future.

Unfortunately, they also tend to change banks frequently. While some call center management may point to the fickle nature of millennials, there may be good reasons why these individuals jump ship. And these reasons may offer keen insights into how a bank needs to change to be viable in the future. 

A recent Money Rates piece highlights the point, stressing that the movement in millennials from one bank to another is directly related to how much banks are changing as a whole. Think about the way technology is emerging in the banking world. By many comparisons, the industry as a whole is pretty far behind the curve, racing to catch up. That means those institutions that were first to market with their innovations have already worked out the kinks and can better attract those with a higher standard when it comes to technology.

At the same time, call center management within these institutions are being put to the test. Customer service expectations are not what they used to be. And while some experiences are being dictated by the changes in technology as described above, others are a result of the changes that are taking place that have not yet settled down. Therefore, the bank that recently introduced mobile banking may not have all of the pain points worked out yet, leading to more calls to the call center. Without immediate satisfaction, it affects the entire customer experience.

It doesn’t help that stricter regulations in the banking world contribute to more complexity when it comes to delivering on the customer experience and millennial expectations. In any other commercial environment, the transition from personal to tech-based service would be one of the evolutionary variety as users gradually accepted technology at a pace that made sense for them. Economic and regulatory environments have more to do with this pace in banking, tying the hands of those in call center management who would prefer a different approach to building customer loyalty.

Still, the movement happening in the banking industry is actually a good thing. When millennials change banks more frequently, it’s a wakeup call to those in the industry that changes must be made with this type of consumer in mind. Strict regulations still apply, but change with the improved customer experience in mind is always a good thing. It keeps competitors on their toes and drives a higher standard in the industry as a whole. 

Edited by Alicia Young