22 October 2017
visit www.response.ncr.com

American banks need mobile to attract Gen Y - Javelin

25 March 2011  |  14263 views  |  0 iphone apps on screen

Nearly a third of America's 'generation y' have used mobile banking over the last three months and many are prepared to switch providers to get it, according to Javelin Strategy & Research.

With Gen Y (12-32 year olds) set to earn more than any other generation within 10 years, banks need to tap technology to attract them, offering services such as mobile, personal finance management and person-to-person payments, says Javelin.

About 28% of Gen Y consumers have used mobile banking in the past 90 days, compared with 18% of all people. Not only do they use it, young people switch banks for it, use it frequently, and value it.

Javelin's research also shows that Gen Y consumers have a lower satisfaction rate than that of the general population, which produces a higher switching rate and increases customer retention costs.

Since Gen Y shows a strong preference for electronic and mobile interaction, providers have a chance to guide them toward these less expensive channels.

Mary Monahan, research director, Javelin, says that with regulatory moves to cap card fees disproportionately affecting Gen Y, banks need to look at how they can make money from other services.

"Since interchange and overdraft revenue from debit card transactions has subsidised such services as free checking and free direct deposit accounts for the past decade, FIs will need to determine- from a profitability standpoint - what to do about these free services," says Monahan.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

US identity fraud plummets - Javelin

US identity fraud plummets - Javelin

08 February 2011  |  12107 views  |  1 comments
US mobile P2P payments volume tipped for growth - Javelin

US mobile P2P payments volume tipped for growth - Javelin

10 November 2010  |  10314 views  |  0 comments
Third of Emea banks have no Gen Y strategy - survey

Third of Emea banks have no Gen Y strategy - survey

29 September 2010  |  7951 views  |  1 comments
New tech key for banks looking to capture 'millennial' generation - survey

New tech key for banks looking to capture 'millennial' generation - survey

18 November 2008  |  11653 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.atos.net

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
12085 views comments | 17 tweets | 26 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
11644 views comments | 22 tweets | 28 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9380 views comments | 13 tweets | 10 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
8542 views comments | 10 tweets | 22 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8415 views comments | 9 tweets | 18 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job