Generation Y, Deloitte LLP

The Implications of Gen Y Consumers for Banks

Who is Generation Y and does this new group of consumers really matter to banks? Are they a unique customer segment that requires different market focus and investment, or will they ultimately acquire the behaviors and buying patterns of their parents?

We think the Gen Y opportunity is imminent and vital. Their annual spending is already projected to be $2.45 trillion by 2015. And as their affluence, influence and financial appetite grow, financial institutions need to attract them as customers and win them over for the long term. For many institutions, this will require fundamental rethinking of their channel, marketing and product strategy.

In our new point of view "Catalysts for Change: The Implications of Gen Y Consumers for Banks," produced by the Deloitte Center for Banking Solutions, we explore the characteristics that distinguish Gen Y consumers, the implications and the strategies banks need to use to serve these consumers effectively. It builds on the experiences of banks and other retail-focused organizations. It also incorporates findings from a proprietary Center survey of 1,000-plus consumers, spanning four generations, which was conducted in collaboration with Harris Interactive.

Some of our findings include:

Gen Y demands a fresh approach to marketing, channel management and product strategy. Banks must rethink their traditional strategies to capture this important segment.
Gen Y is a catalyst for change. Success with Gen Y can significantly impact a bank’s success with other generations.
Gen Y-ers are multichannel buyers. Banks need to provide an integrated channel experience for bank transactions if they want to retain those customers longer term.

Catalysts for Change is the first in a series of articles on Reinventing Retail Banking produced by the Center. Each of these pieces examines how banks must move beyond simply meeting their profit and growth goals to delivering more completely on the customer experience. In this case, banks need to prepare to deliver a Gen Y customer experience that will be unlike that of preceding generations.

Learn more in the report attached below.