The era of the Now Generation
The times are a changin'
The Now “Generation” covers both Millennials as well as the Generation Y. In fact it’s a term that describes the trait of a group more than a specific age range, because for what these groups have in common is restlessness. These individuals have over the years been fed a lot of information through various media. They are used to be able to access information instantly at all times, having no patience for being kept waiting.
Relationships with brands have changed a lot in the past five years. For this constantly connected generation is having a major impact on how services are being presented. More than we have experienced before the Now Generation is always looking for services to identify with. The risk of neglecting the demands of the Now Generation for customer centric services is that other companies take the lead. And in the banking sector too, it is gradually sinking in.
The Now Generation has shown they are multichannel bankers. They expect to be able to engage across whatever channel is most convenient and it has to be suited to their immediate needs. And as for now, mobile is their constant companion.
Stagnation calls for changes
Changes are of course part of every industry and perhaps one can argue that banks have had it too easy for way too long. Competition level between banks has been quite dim – competing in prices and interest rates rather than in product and service offerings.
After the 2008 financial crisis the banks reduced their emphasis on tech development as they had to take care of more immediate issues. Which subsequently led to the emergence of specialized and rapidly developing Fintech companies, threatening to change the outdated bank system. With even stronger push due to advent regulations such as PSD2, the banking landscape has changed swiftly forcing the banks to take action to stay ahead of the game. Now, the banks have no other choice than to respond to these urgent changes via new strategies. Customers underlying financial needs have not changed dramatically but the way in which they want to fulfill those needs has. Most banks seem to be missing the mark and as generally young customers don’t think their bank is offering anything different than a competing bank.
“Disruptions in the next few years will lead to an increasingly uneasy industry environment, an environment that will reward the banks and payments players that understand the payments industry and the changes in customer needs, and who can be innovative and nimble in responding to those changes.”
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