- Millennials will comprise 75 per cent of the global workforce by 2025
- 38 per cent of millennials don’t visit bank branches
- 60 per cent prefer to conduct banking activities via an app
Digital Disruption of Retail Banking Report
Increasingly, customers young and old are interacting with banks and financial institutions digitally. While the older generation now banks online more frequently, it is the banking preferences and behaviours of the younger generation – millennials (ages 18-34) in particular – that challenge the traditional banking model.
The bank of the future will look very different. According to the report:
- Bank branches will become obsolete
- The ATM will go the way of the phone booth.
Banks and financial institutions need to act fast to adapt or risk losing customers.
Web-based applications set an expectation of a quick and efficient end-to-end digital process. In reality, this isn’t always the case. For many institutions, manual, disconnected processes still prevail.
Digitalisation can transform processes and the customer experience. As a far-reaching, challenging exercise it needs to take every platform and process in scope.
The end-game is automation, streamlined data handling to aid straight through processing, fewer manual errors, reduced costs and a foundation for continuing innovation.
New market entrants and small banks may be nimble in adapting and adding to their portfolio of offerings but institutions with heritage have established customer bases and a wealth of data to draw upon as they execute their strategies.