Why Generation Y is Not Using Banks

[Corey Dutton]

Brian Caplen published an article in The Banker called, ‘Why Generation Y Do Not ‘Like’ Banks.’ Brian Caplen asserts that Generation Y, ages 18 to 34, “expect their bank to be on top of all of the latest tech developments.” This is certainly true. Generation Y’ers are using non-bank services and payment solutions like PayPal.com and Xoom.com versus using traditional bank accounts, and most expect to access their bank accounts via their mobile devices. However, I don’t completely agree with the author’s assumption in the article that Generation Y’ers want to access their bank accounts via social media. Traditional banks will have to gain a strong grasp of social media in their marketing along with mobile. But I think the real point is that a tremendous opportunity exists to create a market within the market with regarding to Generation Y and “banking.” The financial technology sector will eventually produce a winner that will capture the Generation Y’ers. For traditional banks that can’t evolve and capture them, well, we all know what their eventual fate will be. Read the entire article on The Banker at the link below. Traditional banks are certainly posed with a tremendous challenge and opportunity with the younger generation. How do you think they will fare?

(Source: The Banker: http://www.thebanker.com/Editor-s-Blog/Why-Generation-Y-do-not-like-banks)

Posted by Corey Curwick Dutton