We’ve recently partnered with Aite Research to tackle a hot topic – marketing financial products to Gen Y. It’s a top priority for many banks who for years failed to develop strong relationships with their bread and butter – boomers. Now given the tough economy, banks are turning their attention to Gen Y and asking – how are they different and how do we not mess it up this time?

Survey Surprises

While, Gen Yers were alot like older consumers in many respects there were a few surprises. For one, our survey results dispelled one of the biggest myth about Gen Yers: That is the belief that Gen Yers care less about making money than other generations. In fact, 6 in 10 Gen Y respondents indicated that making money was just as important to them as their parents and nearly a quarter indicated it’s more important. Two other surprising results were the fact that one in five Gen Yers have met with a bank representative to get help with a financial decision in the past year, and the high rate in which Gen Yers recommended their bank to family /friends – 35%. Overall, very good news for financial institutions if they can figure out how to cultivate these relationships. 

The Must-Dos To Cultivate Gen Y Relationships

In perhaps the most important section of the research report, Aite senior analyst Ron Shevlin shares his thoughts and recommendations for cultivating Gen Y relationships. He begins by creating 3 distinct segments (highly engaged, moderately engaged and not engaged) of Gen Yers based on their activities. For example, among the highly engaged users 94% get email, 85% bank/pay bills online, more than half use their debit cards 15 times or a more a month, and nearly half moved money between accounts at least six times in the past 6 months. Not surprisingly, highly engaged users who account for 35% of all Gen Yers were more likely to download iPhone financial apps and use online financial related websites. In addition, highly engaged users were more likely to trust their bank, recommend their bank and were twice as likely as lower engaged users to expand the relationship they have with their banks – all compelling reasons for banks to get it together.

Ron notes, “Arguably, banks have done a poor job of developing strong, lasting relationships with their customers. As a new generation of consumers comes of age, banks have an opportunity to start fresh and avoid the relationship sins they have committed in the past.” To cultivate these relationships – Ron recommends banks: 

1. Develop Gen Yers’ interest in managing their financial lives
2. Encourage cross-channel interaction 
3. Engage – not just educate
4. Provide dedicated advice and guidance
5. 5. Make it a family affair
6. 6. Measure engagement levels

For additional survey details or to order the complete report visit Aite Research.  For more insights from Ron Shevlin - visit his new blog - The Marketing Tea Party.