I Generational Trends Shaping Growth Goals IS MODERNIZING YOUR LEGACY SYSTEMS PART OF THE 2025 STRATEGIC PLAN? By ADVANTAGE In today’s competitive financial landscape, understanding generational preferences is crucial for community banks and credit unions aiming to grow their market share and effectively compete with big banks. Insights from a recent BAI report reveal how different generations value distinct features from their primary financial institution (PFI). To attract and retain new account holders, it’s vital not only to recognize these preferences but also to implement the right digital tools to meet and surpass their expectations. Tailoring Strategies for Every Generation Different generations have unique priorities when choosing a PFI. Here’s a breakdown of what each group seeks: • Baby boomers: Value convenience, reputation and comprehensive financial services. They look for high‑yield money market accounts, wealth management options and reliable peer-to-peer (P2P) payment solutions. • Gen X: Prioritize convenience, solid reputation and competitive rates, similar to Boomers, with an added emphasis on practical financial management tools. • Millennials: Seek cash incentives, budgeting tools and financial education. Millennials prefer institutions offering these resources, while 81% are willing to switch for a better digital experience. They also prioritize no‑fee banking. • Gen Z: Seek seamless digital experiences and mobile-centric services. Although they heavily rely on technology, they still value the reassurance of physical branches for added security. Meeting the Digital Demands To stay competitive with big banks, you must offer the right blend of digital capabilities and consumer-focused services. And while baby boomers and Gen X value branch and ATM convenience, Gen Z’s expectations are rooted in a seamless digital experience. Despite their reliance on digital platforms, Gen Z still finds physical branches important for peace of mind. This means having robust technology that integrates smoothly with what consumers want when it comes to banking. Ensuring you have the digital tools and platforms to offer a compelling user experience is essential. It could involve upgrading existing systems or finding new vendors that align with your goals. Essential Offerings for Growth Baby boomers and Gen X are significant demographics with substantial wealth, so focusing on high-value services and competitive rates is crucial. However, millennials and Gen Z are attracted to features like cash incentives and advanced digital tools. Understanding these preferences is not enough — it takes having the technology to deliver them effectively. For instance, millennials are more likely to switch PFIs for a better mobile app, highlighting the importance of investing in top-notch digital solutions. Gen X values competitive rates but also seeks out financial institutions with strong reputations and convenient service options. Colorado Banker 14
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