To achieve long-term growth, community banks need to focus on attracting millennials and Gen Z, the two fastest‑growing demographics with significant economic influence. focusing on digital innovation, community banks can attract and retain younger customers who increasingly value both digital convenience and personalized service. UNDERSTANDING THE CHALLENGE Understanding the challenge of attracting younger consumers to traditional banks requires recognizing their preference for digital-first approaches. Millennials and Gen Zers increasingly gravitate toward digital banking solutions, expecting convenient, seamless interactions and instant access to a variety of financial tools. This trend has led many banks to enhance their mobile banking capabilities, with many now integrating features like credit monitoring and budgeting within their apps. Banks embracing advanced personalization strategies are seeing positive results. For instance, 77% of institutions personalizing services through data analytics and machine learning have achieved positive customer growth and retention. This approach both spurs customer acquisition among millennials and Gen Zers and also boosts cross-selling, as these customers are more likely to engage with services tailored to their specific financial needs. Adapting to these consumer preferences is critical for banks aiming to remain competitive. By prioritizing personalized, digital-first experiences, community banks can better capture the attention and loyalty of younger consumers who expect more from their banking interactions than just on-site transactions. 18 | INDEPENDENT REPORT
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