I’m a Millennial. I am a loyal customer for Bank of America, and this is my story.
When I visit my beloved hometown, I can’t help but notice there’s now a bank on practically every corner. The local banks that are now facing stiff regional and national competition are placing billboard ads right as you enter town. One of these ads has always stood out to me, which is a photo of a friendly bank teller saying, “We’ll know you by name.” Being from this now not-so-small town and seeing this ad reminds me of the very personal experiences I had banking locally. Especially considering my old classmate’s Mom was my bank teller and, yes, she knew me by name.
I enjoyed the customer service and would be more than happy to recommend the local banks to other locals. However, all I could say is that they may have lower rates, local friends and my old classmate’s mom works there. I could also say they’re all very friendly and they have tons of ATM locations – but those are only within a 10-mile radius.
All of these seem like good qualities for a bank, but not something I would brag about to someone of my generation. Not long ago, people typically had only inertia loyalty towards banks. They were only loyal because it was too inconvenient to switch or they had no other options. Today, consumers have more choices; and the Millennials, who are now the largest adult population group, are completely changing the loyalty space for the financial sector.
FICO recently published a study called, “Options and Opportunities: Forging Lasting Banking Relationships with Millennials.” I was surprised by how most of the findings outlined my exact experiences and perspectives in regard to the loyalty I have with my bank. Here are the 9 key findings of the FICO survey:
1. Millennials More Likely to Switch
- 5x more likely than those over age 50 to close all accounts with their primary bank
- 3x more likely to open a new account with another bank
It’s true. Millennials are less loyal to their primary banks than other consumers, and I’m a living example. My first bank account was with a local bank, but the first account I opened on my own was with a regional bank. And then I switched again.
2. Millennials Use National Banks as Their Primary Bank
Hello, Bank of America!
3. Why They Leave: Perceived High Fees, ATM Issues, Negative Experiences
Fees:
I soon became very bored with my regional bank. None of the features were exciting or different from the local bank I used growing up, besides high overdraft fees. Six years ago, I needed overdraft protection because I was the typical financially irresponsible Millennial. That also put saving money out of the question. BOA put the solution in my hands by convincing me to open a savings account with Keep the Change, making saving completely effortless. Even better, there was a promotion at the time. #Winning
ATM Issues:
My local bank only had ATMs within a 10-mile radius of my hometown. My regional bank had ATMs in St. Louis. BOA has ATMs all across the country.
4. Digital Channels are the Way to Market to Millennials
BOA caught my interest very quickly once they moved into town because I recognized their commercials, which led me to their website and exposed me to the unique benefits and features available. For example, they offered specialty card design options that shared my identity with charitable causes and special interests.
5. Multiple Digital Channels and Devices are Used for Key Banking Activities
6. Mobile App Users are More Loyal
BOA’s mobile app experience is better than every bank or credit card app I’ve used. This is VERY important for us Millennials because we are significantly more likely to transact with our banks through mobile apps than others. And to take it a step further, FICO claims that frequent mobile app users are more satisfied with their bank and will recommend that bank to others.
7. Millennials May Not be Aware That Their Bank Offers a Mobile App
In all honesty, I find this hard to believe because our smartphones are the center of everything we do.
8. Texting is Preferred
We expect instant notifications about our account balance, payments, reminders and warnings. The study doesn’t mention what other options were surveyed, but I consider app notifications to be just as important. I get the same instant notifications via app, which I prefer over text because they bring me straight to the BOA app I love.
9. When They Like Their Bank They Tell Others
You bet! I brag about the app, the ATMs and how they scan and instantly deposit cash and checks to my available balance. No envelopes, no waiting, no nonsense! There was also this one time in band camp when I accidentally sent a large single payment out twice and the merchant tried to make me wait 30 days for my refund. I immediately called BOA and the funds were back into my account the next day. Of the Millennials FICO surveyed, 56% have recommended their bank in the past, and a positive service experience is a clear driver for them to recommend their bank to others.
The unique account features, ATMs, mobile app, and of course, my customer service experiences are the reasons I am a true loyal customer to Bank of America. What makes you loyal to your bank? I’d love to hear about your experiences. @jacob_engages
The post Millennial Perspective: Building True Loyal Banking Relationships appeared first on Maritz Motivation Solutions Blog.
