Which Banking Services are Most Attractive to Younger Customers?
Which Banking Services are Most Attractive to Younger Customers?

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December 7, 2023

The banking industry is evolving to meet the needs of younger generations. Popular bank services of the past such as check design choices and only meeting in person with a bank employee about checking or savings options are not as important to younger bank customers. The banking services they value the most include items such as digital banking, personalized customer service, and education resources. It is important for banks to understand and provide these top banking services to the latest generations entering the banking world in order to earn their trust and business. In this article, we will feature popular banking services that are considered to be “must haves” for younger bank customers.

Digital Banking: A Non-Negotiable Demand

Younger customers do not want to be tied to the idea of only being able to handle their banking needs during the hours posted on the door of a bank branch. They want the ability to bank whenever it is needed and no matter their location. The rise of online and mobile banking platforms has given them the ability to handle a good portion of their banking tasks on their phone. This customer group especially enjoys the functionality of an app as well as the user interface of both the app and the online banking platform.

Personal Finance Management Tools

As younger customers enter the workforce and get their first home or apartment, their personal finances are more important than ever to them. Banking apps feature personal finance management tools that help customers budget their finances and also show them ways to more easily save money. In general, these tools empower younger customers to more effectively manage their finances.

Flexible and Innovative Payment Solutions

When it comes to banking services, one of the most important is the ability to make contactless and mobile payments. Instead of having to write a check or visit a bank to get the desired amount of cash to make a payment, peer-to-peer payment platforms allow customers to instantly send a payment to the seller. Plus, some customers prefer to use cryptocurrency services to manage digital assets or use digital wallets where they can make transactions and store funds.

Competitive Interest Rates and Savings Incentives

Interest rates that are competitive with other banks attract the business of younger customers along with high-yield savings accounts. These options are appealing as they allow younger customers to finance large purchases, get cashback when opening an account, or even earn rewards for being a customer.

Educational Resources and Financial Literacy

Not every customer knows exactly what they want or even the services they can receive as they enter the banking world. This highlights the Importance of financial education for younger customers which can be achieved through online resources such as webinars and in-person or online workshops offered by banks. Printed educational brochures for banks are hugely successful as well.

Sustainable and Ethical Banking Options

The state of the environment is of great importance to younger generations and they actively research companies to find those that share the same values and concerns. They are looking for banks that do not prioritize profits over people or the planet. Instead, they want a banking partner who bases their corporate decisions on ESG standards (environmental, social, and governance).

Personalized Customer Service

While AI and chatbots are being used to enhance the customer service experience, there are times when personalized customer services are needed. Premium banking services should include a personal touch and human interaction for personalized banking advice whether it is through a chat feature or a video call.

Loans and Credit Facilities Tailored for Younger Demographics

Younger demographics are entering the banking world with debt from student loans and starter credit cards. In addition, they might want to know more about first-time home buyer programs. They are looking for financial guidance and flexible repayment options and they want their bank to be the source of this information.

Now that you know the banking services that are most important to younger customers, your marketing materials should promote these services. We can help so call today.

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