In next few years, GEN Y is to mature quickly and big revolution is due. Needless to say, virtual / online world is sure to dominate the offline channel in less than a decade. And this will be major boon for service sector e.g. financial services, Music, travel, hospitality, retail, telecom etc. The key question is, are we guys ready? Are banks ready for this change esp in Infrastructure, Organizational Structure, Channel strategies, longish targets and whether it's internal culture is geared to bear this radical shift?

See the customer profile maturing from next 3-5 years

• Spent more time on web than television in their lifetime
• Interactive with web 2.0 community for chats / forum / blogs etc and had multiple (and dynamic) relationship offline as wells offline.
• Spent huge man-hours on virtual grounds than the proper sports grounds
• Prefer e-cards than the physical cards
• Lots of music, game or movies bought using dad's credit cards
• Lots of free download on multiple type of handsets and desktops
• Stick to online review for any recommendations or product comparison
• Use google maps to locate best spa

What aspects have they seen in banking

• Have they actually been to branches?
• Have they used check-books anytime?
• Have they used cash other as much as Gen X and Baby boomers have?

What time they may like to see bank braches and ATM

• Open the account (post research on best bank in the vicinity)
• Fight with bank officials for grievances
• Special invitation by banks (e.g. bank is sponsoring some football match and free passes ...)
• Sign power of attorney for grandpa
• Close the accounts (if mandatory)
• Emergency withdrawal at ATMs

Why these guys may be a huge opportunity from revenue, cost, and margins perspectives

• Banks can innovate new products (e.g. combo of high risk - high return investment)
• The unfinished agenda post dot com burst such as e-mall, B2C, e-this, e-that can find critical mass
• Banks will have cost effectiveness in *Providing STP combined with comprehensive life-cycle in new supply-chain environment *Channel dependency as % of overall revenue
• Vertical integration amongst various different industry segments transpire aggressively
• Brand building across e-channels
• Cross selling
• Acquisition from competitions (as e-banking loyalty pattern will take a jolt)
• M & A with segment targets
• Make technology investments never dreamt before

What banks need to do

• Open up minds and have outword look (e.g. web 2.0 world, P-2-P , mobile scene)
• Plan for restructuring you product compositions, delivery models, org structures etc to suit to future
• Plan the business using technology advancement more aggressively (banks yet struggling for forming m-com driven policies)
• Plan your campaign / promos incorporating GEN Y perceptions.
• Frame USP for your organization much before baby is born (micro-payment, investments, lending etc etc). You may get early-mover advantage in some cases (agreeably at a risk, though)
• Plan to be part of entire life-cycle for a transaction. Some early alliances across industries may open up new vistas of growth.
• If nothing is possible, relax. Plan to buy the failed ventures at dirt cheap prices.

Note: - Opinions expressed here are my personal views and do not in any way reflect views of my employers.