Mobile banking and social media key to engaging 'Generation Y', report says

15 November 2011

Mobile banking and social media are both key to financial institutions engaging effectively with ‘Generation Y’ banking customers, a new report has revealed.

A study by Efma and in conjunction with Oracle showed that the quality of engagement and communication in real-time are important parts of a successful Generation Y strategy.

Offering mobile banking services and establishing a social media presence were both seen as effective ways of interacting with these new breed of consumers, particularly in offering a real-time, 24/7 customer service.

Patrick Desmarès, secretary general of Efma, said: “Whatever the innovation, it’s worth remembering that sometimes ideas that are developed for the youth segment can be developed for a wider market, with Gen Y acting as the early adopters.”

“There is an increasing number of new channels available to banks. However, banks should see new technology as a means of bringing value to customer relationships, not as an end in itself.”

Further findings from the report showed that approximately 30 per cent of banks had a dedicated strategy for 'Generation Y'.

However, almost 40 per cent of survey participants said they were in the process of developing a plan for these consumers.

By Jim Ottewill