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Banks face immense challenges trying to keep up with technology, but they also must cater to older customers with big deposit accounts who still use their branch.
December 21 -
Avoid viewing millennials as a monolithic group. Consider parsing them into subgroups such as affluent, homebuyers, entrepreneurs and savers. The smarter move may be removing the age bracket blinders entirely.
October 8
A BankThink
One commenter wrote, "My 75-year-old mother loves her smartphone and marvels at not needing to visit a bank branch to deposit a check anymore." Another commenter, who gave her age as over 65, wrote, "If I never have to walk into a branch that would be OK with me. Don't paint us all with one brush, and don't underestimate your customers!" A third said: "Technology is the great leveler, so don't let your bank get leveled by generational assumptions."
There is more than just anecdotal evidence that too much of a focus on millennials can actually limit the target audience for financial innovation products. Generational Xers, baby boomers, and, yes, even some older customers, are tech enthusiasts and want to avoid trekking to a branch.
The scope of interest in the ease of access offered by digital banking services is much more universal than media reports focused on millennial consumers suggest. Even the oldest members of the baby boom generation have lived with computers most of their adult lives. They're comfortable online and keen to learn to use more technology, making them good targets for mobile-oriented services. What is more, they have deeper relationships with, and probably more long-term loyalty to, their traditional financial institution than younger consumers. They also have more wealth, and most are still earning.
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Digital technology penetration into both boomer and Generation X age groups will likely only continue to grow. The AARP estimates that an American turns 50 every seven seconds, while those over 50 already make up a quarter of the U.S. adult population.
It may be true that younger users drove the initial development of services such as remote deposit capture, bill pay and personal financial management tools. But assuming that they are the only ones interested in digital banking misses an important piece of this story.
Alissa Fry-Harris is the director of marketing for
