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Artificial Intelligence, Banking & Financial Services, Digital UX

What Banks Need to Know to Make Millennials Do More Business With Them

Do you know what Millennial customers really want from their bank?

Millennials who account for 31.5% of the world population have the buying power of $600 billion worldwide, they are the most important financial generation. Millennials grew up with the internet and are very tech-savvy people in terms of handling almost every chore from their mobile apps. Unlike their predecessors, millennials tend to take a digital-first, branch-second approach to their banking too.

Above all, they seek flexibility from their financial providers as they are fatigued from long queues, strict guidelines, stiff requirements, complex loan applications, and many other restraints. 

With the present technology revolution and convenience, this financially fragile generation  is turning away from traditional banking players as they look for personalized and easy to use financial services. Thus, the gradual shift in consumer preferences is a hardcore reality to the innovation-averse  banks who need to alter their service and technology infrastructure to adapt to a modern and selective group. 

When it comes to banking, what do millennials want from their bank? 

  • Millennials want simplicity.
  • Millennials enjoy flexibility.
  • Millennials prefer banks to understand their needs.
  • Millennials want to use their own channels. 

1. Seeking simplicity 

Millennials look for convenient banking tools that are easy to understand and provide instant solutions. As the generation born in the technology revolution, they are infamous for their lack of patience and hence they want instant responses and solutions from their financial service providers. 

From enquiring about their account balance, investment information to blocking credit cards, it's imperative to be on point whenever an agent deals with a millennial. 

2. Enjoying flexibility 

Millennials are adopting a flexible approach while managing their finances. Personalization is one of the key factors, keeping in view the freedom to control the choices of services in addition to their primary banking activities. Studies show that 61% of millennials in the United States have adopted new-age banking services alongside their traditional bank. They want to interact with banks whenever they want and expect banks to provide 24x7 accessibility and that too in their preferred language. 

Also Read: AI-rich Virtual Assistants Set to Unleash a New Era of Digital Banking Experience

3. Banks should understand their needs 

Like friends who understand each other, millennials trust their banks more when they feel understood by their financial providers. 

Studies also show that 67% of millennials in the US trust a bank that understands their needs.

The banks need to realize the lifestyle of the millennials like taking a loan or becoming more financially secure and offer personalized solutions. With a more conversational and personalized approach, banks need to build stability and security to establish a strong relationship with millennials and do what they do best - provide bespoke financial advice. 

4. Use comfortable channels or switch between them 

Traditional channels don't have the same appeal to millennials as they used to have to the older generation, like visiting banks and having their problems addressed by a live agent. Millennials want to interact with providers on platforms that they are already using in their daily lives like - messaging apps, social media channels, etc. They would relish if the banks provide them an opportunity to perform transactions from their preferred channels including WhatsApp, FB Messenger, WeChat, and more. Sometimes they would also change the mode of conversation but would appreciate it if their data is seamlessly available to all channels too. 

Given this situation, banks start with integrating AI-powered bots as well as conversational AI into their client experience. Conversational Banking is a new-age solution leveraging AI-powered virtual assistants to empower customers with a natural conversation experience. 

This trend has clearly been sparked where customers can make absolute fluid conversations providing a personalized and contextual self-service to each user. The beauty of Conversational Banking is - it supports voice, text, or UI commands. The solution is extremely scalable, secure, and affordable to all-size banks and credit unions. 

Also Read: How can banks focus on customer engagement capabilities and help millennials make better and smarter financial decisions? 

How can banks provide millennials with the service offerings they are looking for? 

  • Focus on omnichannel user experience
  • Introduce Text/Voice interaction in Banking
  • Personalization
  • Instant Support
  • Proactive/Recommendations 

1. Focus on omnichannel user experience 

Banks need to stress the customer-centric digital experience, ranging from engaging customers to simplify financial management wherever they are logged-in. Banks can implement bots across multiple channels like messaging apps, digital assistants, enterprise applications, and collaboration tools using the build once and deploy anywhere approach. 

By offering a clear overview of existing finances, FAQs and additional capabilities such as information on investment and best savings offer to all diverse channels, banks can make the banking experience simpler and easier to comprehend. 

2. Introduce Text/Voice interaction in Banking 

Bank's digital channels should try to become more flexible interacting with the millennials through upgraded features like voice-driven interactions. This powerful feature allows the banks to communicate outside of traditional messaging applications – including IP Phones, wearables, and other speech-enabled gadgets like Amazon’s Echo and more. 

For example, many millennials will contact the banks on social media rather than calling or emailing to customer support helplines. The queries can be simple questions or FAQs, and the banks can integrate bots or virtual assistants to automate answers on Facebook. 

3. Personalization 

Banks need to go beyond a finance-only approach and offer something more to the millennials. But designing more user-friendly products and services is the only part of the challenge banks face. The customer journey is also important that will allow the millennials to see how banking services can add value to their lives. 

Also Read: Now, More Than Ever, is Time for Banks to Adopt Conversational AI With Vigour

Banks can build a relationship over multiple touchpoints, availing special day (birthday, anniversary, etc) discounts, customized solutions tailored for the millennials based on their transaction and expenses, and delivering the sort of convenient, proactive services that can be beneficial to build trust and loyalty. 

4. Instant Support 

While banks must invest in mobile, customer-friendly technologies and focus more on personalization, they also should consider a live-agent alternative (Bot/Virtual Assistant) that offers visitors a fast alternative to waiting in line for a teller. The bot can help customers address basic needs, FAQs, and can free up staff to focus on delivering a better customer experience. 

5. Proactive/Recommendations 

There is a huge opportunity for banks to build trust amongst millennials by offering a personalized experience. By customizing the features and recommending relevant offers, financial literacy materials, etc. financial providers can build an authentic relationship with their customer base and show their millennial customers that their financial situation is understood. 

The Banking Virtual Assistant from Kore.ai enables banks to offer a conversational banking experience to their customers. It is domain trained with 200+ most common banking use cases prebuilt. Banks can go-live in a matter of weeks - and you can easily extend your virtual assistant’s functionality whenever needed (quickly and easily) with a no/low code solution workbench. It provides all the necessary tools to design, deploy, re-use, and manage digital experiences through drag-and-drop tools, inbuilt templates, UI forms, and more. The assistant Supports over 30+ channels out-of-the-box 

Request a demo to know how AI-driven chatbots bring more banking opportunities and reduce customer service costs.

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