Thursday, October 1, 2009

Banks Target Gen Y

Posted by Mark Brousseau

After failing to develop strong relationships with older consumers, banks are now turning to Generation Y -- with its emerging demand for banking products -- as a source of growth in a weak economy. In addition, banks have an opportunity to start fresh and avoid the relationship sins they have committed in the past. Gen Yers' trust in banks is slipping, however. Only 14 percent of Gen Yers report that their trust in their primary bank has increased over the past year, while 22 percent say that their trust level has decreased over that time frame.

"Banks must avoid alienating Gen Yers as they did older consumers," says Ron Shevlin, senior analyst with Aite Group and author of this report. "Building strong banking relationships with Gen Yers involves getting them engaged with their financial lives and financial providers. Social networks and the online channel will be insufficient in accomplishing this. The tactics and strategies for winning Gen Yers' business must be cross-channel and even cross-family."

What do you think? Post your comments below.

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