Hoosier Banker 53 It provides bank employees with direct contact to these individuals along with an opportunity to provide information on IRAs as retirement savings tools. Millennials. Millennials are good savers. They are tech-smart and communicate primarily through messaging. And while not heavily focused on retirement at this age (generally ages 22-37), they have started the saving process through their employer retirement plans. Ascensus data for year-end 2017 shows millennials with an average retirement balance just over $11,000 in their 401(k) accounts. This also is the group with a higher number of employment changes. While they appreciate and use the technology solutions offered by the larger financial services firms, millennials prefer the community presence and focus of local firms. Millennials will not visit a branch often, but want to know that one is nearby. Banks can become trusted resources for this demographic group by providing straightforward and valued advice on areas such as retirement plan rollovers to IRAs (new dollars coming in), and can build a long-term bond with this group. Next Steps Finding the right way to reach all of these groups effectively is a key challenge. Making sure you have the expertise available is equally critical. Marketing. There is no single promotion that will reach each of these generations equally. But banks today have the ability to mine their own data and present targeted marketing to each age group. They also have the ability to deliver focused messages through email or text, and can invite the reader to review specific website content. Each generation is seeking a trusted source for financial information. Your website can present content or brief video snippets that review key concepts. Your educational content can also easily include a call to action. The goal is for the user to take that next step. Expertise. When the recession hit in 2008, many banks lost key expertise due to staff reductions and normal retirements (baby boomers). Many organizations relied on that one individual who took care of their IRAs for years. This is something that many banks had not planned for, and many didn’t fully understand the effect on their IRA business. As important as education is for your customers, it is equally as important for your employees. IRAs can be a valuable asset to your organization, but they can also cause negative events if handled incorrectly. To be successful, you’ll need a commitment to educate your team and be willing to seek outside support from IRA experts. IRAs are long-term investments for every consumer group. As deposit products become more competitive for every age group, banks have the opportunity to provide a valuable service and gain long-term customers and deposits. HB James Brown Correspondent Banking NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE WEALTH MANAGEMENT & TRUST Retirement Plans 401K, PENSION & MORE Investment Management Insurance Financial & Estate Planning Trust Partnering MEMBER FDIC EQUAL HOUSING LENDER CORRESPONDENT BANKING LENDING SERVICES Holding Company Lending » Acquisition Financing BOTH WHOLE BANK & BRANCH » Stock Buy Back Financing » ESOP Financing » Additional Capital for Growth & etc. Fed Funds Lines of Credit Loan Participations Commercial Credit Cards & Purchasing Cards DEPOSIT & TREASURY SERVICES DDA Accounts Fed Funds Sweeps Accounts Certi cates of Deposit Wire Transfer / ACH INTERNATIONAL SERVICES Foreign Exchange BOTH CHECKS & WIRES Letters of Credit IMPORT, EXPORT & STANDBY Import & Export Advisory Services Count on us… JAMES BROWN James Brown has over 25 years of banking experience in Retail, Small Business, Corporate and Correspondent Banking. (502) 625-9330 james.brown@syb.com
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